Why should procurement work closely with the hospital department? A. Procurement employees have all technical knowledge. B. Department understand their operational and technical requirements. C. Supplier should determine all requirement. D. Finance should make all technical decisions

Here are the answers to your questions:

1. The question asks why a company uses two suppliers for a critical component instead of one.

   • A. Supplier diversification strategy. Using multiple suppliers for a critical component is a strategy to reduce risk. If one supplier faces issues (e.g., production problems, natural disaster, financial instability), the company can still rely on the other supplier, ensuring continuity of supply. This is known as supplier diversification.
   • The correct option is A.

2. The question asks why procurement should work closely with other departments (e.g., a hospital department).

   • B. Department understand their operational and technical requirements. The user department (e.g., a hospital department) is the expert in its own specific needs, including the technical specifications and operational requirements for the goods or services it uses. Procurement needs this detailed understanding to source the correct items that will effectively meet the department's needs.
   • The correct option is B.