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Below are details of 5 companies who are all embarking on the launch of a new product. For each company, you must decide which innovation tactic they are using and the priority for the new contract.

Company 1: The company aims to design the specification around customers’ requirements. They are keen to ensure a balance between costs and the service provided.

Company 2: This company attends regular conferences held by a professional body and will use the information discussed to inform upon the specification. They are keen to ensure sufficient interest from the marketplace so are placing a priority on networking at the conferences.

Company 3: There is a small group of internal stakeholders who meet regularly at Company 3 who discuss supply chain and organisational integration. The priority for the group is to ensure that the supplier of the new product’s raw materials meets the company’s standards for environmental protection.

Company 4: This company has regular phone calls with suppliers discussing ideas for the new product. Once the product is launched, the focus will be on ensuring that the supplier is held to account.

Company 5: Equipment has been loaned to a supplier to produce a prototype of the new product. The aim of the project is to ensure the supplier is capable of producing the components required for the product before the contract is signed.

Complete the table below by listing the innovation tactic and contract priority for each company; focus group, innovation council, technology transfer, collaboration, supplier forum, early supplier involvement, supplier development, balanced scorecard, contract management, selection, value for money, bidding.

A bread manufacturer requires flour to be delivered to the manufacturing plant on a daily basis. It is important for the bread manufacturer that the quality of the flour meets certain criteria or it cannot be used, and this will impact on the number of loaves that can be produced per day. The manager of the bread manufacturer stated in the contract a qualative target for amount of defects which ties the price they pay to an agreed level of performance. What form of supplier incentive is this?

TGY Ltd is a manufacturing organisation which produces five major components for use in the transport sector. Each component is produced by a different Project Team. Below are details of the five projects.

Project 1: The team are looking at where the material originates and how much of this natural resource is left in the ground.

Project 2: The team are focused on what happens when the product is no longer required by the customer and whether the product can be repurposed to save it going to landfill.

Project 3: The team are keen to ensure the customer is happy with the product and that it meets safety standards. The focus of the Life Cycle Analysis is on what happens inside the factory.

Project 4: The team are looking at the longevity of the item once purchased by the customer.

Project 5: The team are exploring the additional overhead costs associated with the production of the item and the way in which the item is produced.

Complete the table below by listing the area of life cycle analysis being looked at, and the area of the Balanced Scorecard this relates to (some options may be used twice); energy consumption, use, disassembly, extraction, manufacturing, transportation, sustainability x2, quality, environment, value for money, processes.

Below are details of five companies who all have different types of relationships with their suppliers. For each company, select the corresponding relationship type and the main relationship- influencing KPI monitored by the company.

Company 1: The relationship is characterised by high levels of conflict, but is one in which there is mutual respect for each other’s ideas and innovative solutions are often formed from the conflict. This KPI is measured by the level of information sharing between the buyer and supplier and the level of reliability of both parties.

Company 2: There is a low level of co-operation between Company 2 and its main supplier. The contract is not expected to last much longer due to conflicts that cannot be resolved amicably. There is a low level of dependency on the supplier and a number of alternative providers in the marketplace.

Company 3: The relationship is characterised by a win-win approach and both parties consider themselves equal. The relationship is measured based on its openness, honesty and levels of information sharing, particularly in the disclosure of sensitive information.

Company 4: Company 4 works well with their supplier and there is little conflict. The relationship is important due to the high value of the contract and the two parties work together to meet the same goals. The KPI measures the exchanges and levels of collaboration between the parties.

Company 5: The supplier does not place much importance on the relationship with Company 5 due to the low value of the contract. Company 5 is worried that the supplier is not willing to invest in the contract and therefore are measuring the loyalty of the supplier as a KPI.

Complete the table below with the correct relationship type and relationship influencing KPI: nice, creative, marginal, hostile, partnership arm’s length, power, trust, co-operation, communication, commitment, transparency.