AOS1 choosing suppliers

Question 1

finding the right supplier

Answer 1

• the process of researching and selecting suppliers, establishing payment terms, negotiating contracts, and the purchasing of the resources that are vital for maintaining the production of the business’ good or service.

Question 2

price

Answer 2

• for a business to remain profitable it must keep costs low where possible

Question 3

quality

Answer 3

• the quality of the goods and materials sourced by a business from suppliers is reflected in the end product sold to the customers. when purchasing from overseas suppliers the business must ensure it meets Australian standards.

Question 4

reliability

Answer 4

• where businesses have a faster turnover of stock they rely on timely delivery from their suppliers, if the supplier cant deliver the goods on time this reflects poorly on the business and negatively impacts sales.

Question 5

proximity

Answer 5

• shorter distance between business and supplier saves time and money. sourcing suppliers locally can also support the local economy and is environmentally friendly.

Question 6

considerations when choosing socially responsible suppliers

Answer 6

financial impacts- the costs involved in sourcing the materials

social impacts- the labour conditions involved in the manufacture

environmental impacts - wether or not pollution or waste is produced from the manufacture

Question 7

advantages of using socially responsible suppliers

Answer 7

• improves the reputation of the business
• increased sales
• investors are more likely to invest their money into the company

Question 8

disadvantages of using socially responsible suppliers

Answer 8

• increased costs from sourcing from socially responsible suppliers
• time consuming to perform checks around behaviour of suppliers