Supply Chains Flashcards
What is a supplier?
Provides a good or a service to another business
Why are suppliers important?
Determine cost of supplies
Influence quality of product
Can provide finance (trade credit)
Essential for business using lean production ,JIT - need a good relationship
How do suppliers link to customer service?
Less lead time on deliveries, no delays
Customers get their product from the business getting the suppliers quicker
How do suppliers link to productivity?
Less delays, less waste for the business its supplying
How do suppliers link to flexible capacity?
meet sudden changes in demand
What are the characteristics of a good supplier?
Right price for quality
On time, as described
Constant communication
Builds up a good relationship (beneficial for both, sales and credit)
Able to handle changes in demand
How can supplier prices be lowered?
Grouping purchases
Ensuring there is competition between suppliers
