1. Identify the steps that Derick should take to solve his problem.

2. Should Derick ask for the required changes from the current suppliers? If they do not comply, should he solicit new suppliers? How might he do this?

3. Should Derick go through a competitive bid in the future? If so, should he do it for all purchased products or just some products?

4. What are the differences when looking for suppliers to meet cost standards versus quality standards?

Answer explained below

Explanation:

Identify the steps that Derick should take to solve his problem.

Derick should be building relationships throughout his SC. Since the business strategy is changed, he needs to work out the alignment with the SC strategy. Derick needs to research competition, vendors, and costs with other chemical suppliers. Although they have been focused on costs in the pasts, they are now resetting priorities for their SC design.

Should Derick ask for the required changes from the current suppliers? If they do not comply, should he solicit new suppliers? How might he do this?

Yes, this is a part of building relationships in the SC. If they do not comply, Derick will need to seek out other vendors. He has done bids for 1 year contracts and could continue to do so with the new specifications.

Should Derick go through a competitive bid in the future? If so, should he do it for all purchased products or just some products?

This is a strategy that has worked for Derick and company. He should continue in order to keep any of the priorities (cost, time, innovation, quality, service) as part of the SC strategy.

What are the differences when looking for suppliers to meet cost standards versus quality standards?

If a supplier is only focused on costs they more than likely have a poor supply chain themselves.

Quality is usually a major priority that will lack in products if costs is the only thing a company is focused on. Quality is also a factor in consumers perceived "value" of the product/service being delivered.