A Matter of Ethics Online Action

Chapter 24: Stock Handling and Inventory Control

The Price of Cheap
You are the manager of a fashion retail store. Six months ago, you decided to change your jeans supplier and your silk shirts supplier. You had found suppliers who gave you a much better deal and saved you about 10 percent on the cost of goods you needed for your store. However, the merchandise turned out to be inferior, some of the clothing shrank or became discolored when they were washed the first time. Sometimes, the seam stitching did not hold up to regular wear. Many customers have brought merchandise back and you have had to give refunds.

Activity
Consider some of the ways using inferior products can come back to haunt a business. Although the company can save money by using cheaper materials whenever possible, what are some ways the business can be hurt by it? Write a report that explains how and why a company can suffer if suppliers provide inferior products.