A hardware supplier has delivered late and missing components. The company plans to cancel the contract and use an overseas supplier. What should the project manager do first to proceed?
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Correct answer: Request assistance from the procurement department on the next steps..
Why this is the answer
The project manager's first action should be to request assistance from the procurement department. Procurement specialists possess the expertise in contract law, supplier management, and organizational policies necessary to navigate contract termination, potential penalties, and the process of engaging a new supplier. This ensures compliance and leverages internal resources effectively. Engaging an interpreter, checking social media, or learning cultural characteristics are all valid steps for after the decision to switch suppliers has been formalized and the procurement process for the new supplier is underway. These actions are premature as a first step when the immediate need is to manage the existing contract issue and initiate a new procurement.
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