Supplier X provides software critical to production at EFG Corporation.

Issue at Hand: Supplier X will no longer support the current software version that EFG is satisfied with.

Prohibitive Upgrade Costs: EFG cannot afford the costs of upgrading to the newer software version at this time.

Incentivizing Support: Identifying additional business opportunities for Supplier X within EFG can serve as an incentive for Supplier X to continue supporting the current software version.

Strengthening Relationship: This approach leverages the existing relationship and provides Supplier X with potential for more business, making it a mutually beneficial solution.

References

ISM. (n.d.). Supplier Relationship Management: Strategies and Best Practices.

CIPS. (n.d.). Building and Managing Supplier Relationships.