ISM CORE Based on Real Exam Environment

To ensure Supplier Y improves its KPI scores, the supply manager should require the supplier to submit a detailed written plan outlining specific steps and strategies for improvement. This plan should include measurable targets and timelines for each KPI. By closely monitoring the supplier's progress against this plan, the supply manager can ensure accountability and provide support where needed, fostering a continuous improvement culture.

References

Supplier Evaluation and Performance Excellence: A Guide to Meaningful Metrics and Successful Results by Sherry Gordon

"Key Performance Indicators (KPIs) in Supply Chain Management" - Supply Chain Council

A blanket agreement is best suited to the firm's needs to obtain the best price and reduce administrative costs for procuring office supplies. A blanket agreement allows the company to negotiate a fixed price for supplies over a specified period and simplifies the procurement process by reducing the need for multiple purchase orders. This type of agreement can leverage the firm's total buying power to achieve cost savings and reduce the administrative burden associated with frequent individual purchases.

References:

Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2015). Purchasing and Supply Chain Management.

ISM (Institute for Supply Management). (2020). ISM Glossary of Key Supply Management Terms.

Contract Law Principles: Generally, a contract is binding if both parties have mutually agreed to the terms.

Error in Bid: If the error in Supplier A's bid was not known or reasonably should not have been known by JKL, Supplier A is obligated to honor the bid.

Breach of Contract: Refusal to perform under these circumstances would constitute a breach of contract by Supplier A.

Possible Remedies: JKL may seek remedies such as enforcing the contract, seeking damages, or re-awarding the contract to another supplier.

References

Contract Law Cases and Textbooks

Legal Precedents on Contractual Errors

Procurement and Supply Chain Management Resources

The FIRST course of action for the research company to resolve the dispute over the contract price error is to establish with the broker that D. there was an administrative mistake. This approach involves acknowledging that a clerical error occurred in the contract documentation, which led to the misstatement of the price. It is a common first step in resolving such disputes, as it sets the stage for further discussions or negotiations to correct the error and reach an agreement that reflects the original intent of both parties1.