Suppliers

• Price.


  The price offered by the supplier directly affects the production costs for a company. Comparing prices from different suppliers allows businesses to identify better deals and more attractive terms, potentially leading to cost savings.
• Location and transport costs.


  Proximity to the supplier can impact transportation and delivery costs. Choosing a supplier located nearby can reduce transportation expenses and ensure timely delivery, especially for perishable goods.
• Lead time.


  The lead time refers to the time taken between placing an order and receiving it.
• Product Quality.


  The quality of raw materials directly influences the quality of the finished product. Poor quality products leads to reduced customer satisfaction sales and lower profit. Opting for a supplier that provides high-quality materials helps maintain product standards and reduces waste during production.
• Discounts and trade credit offered.


  Trade discounts for regular orders make the cost of raw materials cheaper which lowers cost of production. Trade credit allows the business a period of time without having to pay for purchases, which can help with cash flow.
• Ability to supply on time.


  Timely delivery is crucial to ensure uninterrupted production and meet customer demands. Suppliers who consistently deliver on time contribute to a smooth business operation and customer satisfaction. Failure to deliver on time can hold up production and lead to loss of sales.