26: Working with suppliers

Question 1

Supplier relationships

Answer 1

These are links with the companies that supply a business with goods and services.

Question 2

Good suppliers have these qualities:

Answer 2

• Quality of product as this will increase the chances of the final product being of high quality.
• Flexibility to meet special requirements wil be important for providers of one-off or unusuall goods and services.
• Reliability of delivery - linked to location.
• Value for money.
• Good communication links so that frequent contact can be made.
• Operate the same computer software as the purchasing firm to allow immediate orders and requests to be processed.
• Be financially secure.

Question 3

Service level agreement

Answer 3

Agreements or contracts with suppers that clearly lay down the service that they must provide.

Question 4

Operational benefits of good suppliers:

Answer 4

• Better customer service.
• Fewer production delays.
• Lower costs.
• More consistent quality.
• More flexibility to cope with unusual customer requirements.
• Improved communications as a result of similar IT systems.