Suppliers

Question 1

What are suppliers and a supply chain

Answer 1

Suppliers are the businesses or individuals that provide a business with the inputs (materials or other resources) needed for operation.

For example, Staples supplies BHHS with photocopy paper and whiteboard markers.
Vittoria Coffee supplies Red Cup Café with coffee.

Supply Chain is the range of suppliers from which a business purchases materials and resources.

Question 2

Why is it important to choose the right supplier?

Answer 2

Procurement: the process of finding, acquiring and purchasing resources from suppliers.

Why is it important to choose the right supplier?
It is directly impacts the ability of a business to get goods and services to their customers
If a supplier fails to act in a socially responsible manner, it can damage the reputation of the business

Question 3

Choosing suppliers

Answer 3

Your choice of supplier should consider:
Price: a low-cost supplier can save your business money

Quality: a supplier of high-quality goods helps set your business apart from competitors and avoids defects and problems for customers.

Reliability: a supplier who can be relied upon to deliver ordered goods on time can help prevent production stoppages or unhappy customers

Proximity: a local supplier can cut down on delivery times and CO2 emission associated with transportation

Corporate Social Responsibility: a socially responsible supplier who sources goods and treats employees ethically will add to your business’ reputation. An unethical supplier can jeopardise your reputation and cause scandal in the media.

Question 4

What should you consider when choosing a socially responsible supplier

Answer 4

Financial/economic impacts

Social impacts

Environmental impacts

Question 5

Discuss the benefits and limitations or choosing socially responsible suppliers

Answer 5

Benefits
It reduces costs- savings are achived through ‘green’ initatives such as reducing the use of energy

Imporves the reputation of the business, members of the community, inclduing consumers are likely to perceive that the business is meeting wider community expectations
Limitations
The quality of materials may be lower than the standard required by the business.

Maintaing a supply chain that sources sustainable matierals will be expensive and time consuming