In this situation, the manufacturer would be BEST served by doing which of the following?

A manufacturer receives notice from one of its largest customers stating that, from this point on, it will only accept environmentally friendly boxes for packaging. The manufacturer checks the remaining packaging in its inventory and finds that it still has over six months’ worth of boxes that are not made of environmentally-friendly materials. These boxes are custom-designed and cannot be returned to the packaging material supplier.

In this situation, the manufacturer would be BEST served by doing which of the following?
A . Disposing of the existing boxes and switching to environmentally-friendly materials
B . Explaining the situation to the customer and offering the products in the existing boxes at a discounted price
C . Negotiating a grace period with the customer to allow a gradual switch from the existing design to the new one
D . Using the leftover boxes for internal purposes within the organization

View Answer

Answer: C

Explanation:

Negotiating a grace period allows the manufacturer to utilize the existing inventory of non-environmentally friendly boxes while planning a transition to meet the customer’s requirements. This approach balances customer satisfaction and cost efficiency, avoiding waste and financial loss.

Reference: Supply chain flexibility and customer relationship management practices emphasize negotiation as a key strategy in adapting to changing customer demands.