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The Council have a longstanding relationship with a supplier located in Liverpool that provides its waste management services and operates the only waste processing facility
The Council have a longstanding relationship with a supplier located in Liverpool that provides its waste management services and operates the only waste processing facility within 100km. Lately, there have been several issues that are beginning to put a strain on the relationship. These include both internal factors (late payments, missed pickups, excessive overtime charging) and external factors (contaminated bin loads which can't be recycled, smaller housing developments preventing trucks accessing curbside bins, increasing traffic and the rising price of raw materials). Furthermore, the Council's proposed amalgamation with other Council's will outweigh the existing capabilities of their current supplier. a. Explain some of the reasons why it is important to measure supplier performance b. Explain TWO advantages and TWO disadvantages of contract management c. Discuss the potential benefits and pitfalls if the Council chooses to terminate the contract with their supplier. d. Due to the longstanding and personal nature of the relationship, the idea of contract termination is deemed to be an undesirable option. What other options are available to the organisation? Using your knowledge of procurement strategies, argue several strategies that the company can deploy to ensure continuity of supply
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