Suppliers Flashcards
What are suppliers
Organisations in the supply chain who provide goods and services used in the production process.
What do businesses rely on suppliers for
Supply necessary goods, when they are needed, In the required quantity (to allow the business to match the supply to demand)
What are influences on the choice of supplier
Price - How much the business will pay for the suppliers, which directly affects costs.
Payment terms - An agreement on when payment will be received in to the pimping of an order (You could have a 30, 60 or 90 day trade credit)
Quality - If the business claims that their products are of the highest quality - You need to make sure that your supplier is producing the highest of quality
Capacity - The ability to meet demand at a constant quality, and on time
Reliability - The ability for a supplier to consistently meet the requirements of a business.
Flexibility - The ability of a supplier to respond to change and adapt their processes in order to meet the requirements of a customer (flexible payments, quantity customisation etc)
