Question 5 The Chief Operations Officer of Super Cycles is considering her sourcing strategy. Four key...

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Question 5 The Chief Operations Officer of Super Cycles is considering her sourcing strategy. Four key outsourced components are shown in the table below. Component Cost (as a proportion of Suppliers total material cost) The inner tubes 3% Frame tubing 15% Carbon fibre 32% stem and bars Groupset 35% gearing system Many alternative suppliers Only one supplier capable at the moment. Could take a long time to develop a new supplier Ease of changing supplier Very easy; could do it in days Difficult in the short term, possible in the longer term Relatively large number of Relatively easy; would available suppliers Few suppliers who are capable of manufacturing these components to sufficient quality probably take a few weeks for new contract Complex to source; could switch supplier in the longer term, but would pose quality risk Discuss the approaches to sourcing each of these components. In your discussion, you should focus on two key questions for each of the outsourced parts: what is the risk in the supply market, and what is the criticality of the product or service to the business? Question 5 The Chief Operations Officer of Super Cycles is considering her sourcing strategy. Four key outsourced components are shown in the table below. Component Cost (as a proportion of Suppliers total material cost) The inner tubes 3% Frame tubing 15% Carbon fibre 32% stem and bars Groupset 35% gearing system Many alternative suppliers Only one supplier capable at the moment. Could take a long time to develop a new supplier Ease of changing supplier Very easy; could do it in days Difficult in the short term, possible in the longer term Relatively large number of Relatively easy; would available suppliers Few suppliers who are capable of manufacturing these components to sufficient quality probably take a few weeks for new contract Complex to source; could switch supplier in the longer term, but would pose quality risk Discuss the approaches to sourcing each of these components. In your discussion, you should focus on two key questions for each of the outsourced parts: what is the risk in the supply market, and what is the criticality of the product or service to the business?