Types of Suppliers

Question 1

What are the 5 types of suppliers?

Answer 1

• Wholesaler
• Retailers
• Cash and carry
• Daily market
• Specialist suppliers

Question 2

Describe a wholesaler.

Answer 2

• Wholesalers buy stock in large quantities, from the source (e.g. 400 sacks of potatoes direct from a farmer)
• They then sell on to retailers or deliver to hospitality businesses
• Wholesalers have a large choice of products and are usually the cheapest place to buy from because you ‘buy in bulk’.
• Most wholesalers give credit (i.e. an account where you can ‘buy now and pay later’)
• Good wholesalers offer a reliable service and consistency of product.

Question 3

Describe a retailer.

Answer 3

• Retailers buy goods in bulk from wholesalers.
• They then sell on to consumers in smaller quantities, at a higher price than the wholesaler (they need to make a profit!)
• Retailers sell from conveniently located shops and stores and they sell a very large range of products.
• Some retailers offer ‘home delivery’ which hospitality businesses could use too, but you cannot ‘buy in bulk’ and there are no credit facilities.
• Retailers are also reliable and have a consistency of product.

Question 4

Describe a cash and carry.

Answer 4

• Cash and carry shops trade in a similar way to wholesalers, but they operate large stores which are open to the general public, although you may need to register as a member.
• Products are cheap because people can ‘buy in bulk’, but they have to pay for goods there and then.
• They do not deliver, so customers have to collect goods themselves - this could mean a long journey.
• There is usually a fairly wide choice of products and consistency is not a problem.

Question 5

Describe a daily market.

Answer 5

• Markets (food markets) are a collection of stalls, where stallholders (often the producers themselves) sell their produce to the general public.
• Specialist items are often available, as well as basic items such as fruit and vegetables.
• Markets can be good value for money, but can never be as cheap as buying in bulk from a large wholesaler.
• Many chefs of small restaurants like to shop at food markets so they can choose their own produce and write a menu accordingly.
• Markets do not deliver and you have to pay cash (in many cases).
• Reliability can be a problem if a market trader does not turn up, or does not have what you are looking for.

Question 6

Describe a specialist supplier.

Answer 6

• Specialist suppliers sell unique goods and produce that may not be available from anywhere else.
• They are usually a lot more expensive because they are selling specialised items.
• Reliability and consistency are excellent, and most specialist suppliers deliver, although you can also collect yourself.
• Delivery may not be frequent though!
• Credit is usually available to businesses, but the general public would have to pay there and then.

Question 7

Give advantages and disadvantages of a wholesaler.

Answer 7

• Cheapest
• Sold in bulk
• Credit
• Very wide choice
• Very reliable and consistent
• They deliver to businesses

Question 8

Give advantages and disadvantages of a retailer.

Answer 8

• Fairly cheap
• Sold in small quantities
• Pay now
• Very wide choice
• Consistent and some open 24 hours
• Not all do, but some offer ‘home delivery’

Question 9

Give advantages and disadvantages of a cash and carry.

Answer 9

• Cheap
• Sold in bulk
• Pay now
• Wide choice
• Very reliable and consistent
• You need to ‘carry’ it yourself

Question 10

Give advantages and disadvantages of a daily market.

Answer 10

• Can be expensive
• Sold in small quantities
• Pay now
• Limited choice
• Can be unreliable and inconsistent
• No delivery

Question 11

Give advantages and disadvantages of a specialist supplier.

Answer 11

• Expensive
• Could be sold in bulk and smaller quantities
• Credit usually available
• Very limited choice
• Very reliable and consistent
• They usually deliver