4.6 Working with suppliers

• What is a supplier in business operations?

  An entity providing goods or services
• In business operations, a supplier is an entity that provides goods or services
• What do component suppliers provide to a business?

  Sub-assemblies
• Suppliers of finished goods eliminate the need for a business to produce its own products.

  True
• What type of suppliers enable a business to assemble its final products?

  Component suppliers
• Without reliable suppliers, a business can still meet customer demand effectively.

  False
• Match the supplier type with its description:

  Raw Materials ↔️ Provides basic materials

  Finished Goods ↔️ Supplies ready-made products

  Services ↔️ Provides support services
• What do component suppliers provide to a business?

  Sub-assemblies
• What do service suppliers provide to a business?

  Support services
• What is the role of a supplier in business operations?

  Provides goods or services
• Suppliers of services such as cleaning, IT support, or transportation help a business function smoothly
• Balancing cost with quality is a key factor in supplier selection
• Match the supplier selection factor with its description:

  Quality ↔️ Ensuring high-quality goods or services

  Cost ↔️ Balancing cost with quality

  Reliability ↔️ Meeting delivery times and quantities

  Flexibility ↔️ Adapting to changing business needs

  Reputation ↔️ Considering track record and industry standing
• Why is establishing long-term relationships with reliable suppliers crucial for a business?

  Secures steady supply of resources
• Supplier selection and evaluation is a key element of SRM.


  True
• In business, a supplier is an entity that provides goods or services
• Businesses rely on various types of suppliers to acquire the resources and services
• What is the purpose of Supplier Relationship Management (SRM)?

  Optimize supplier value
• Regular meetings with suppliers are a key way to collaborate and communicate effectively.


  True
• Regular communication allows suppliers to better understand the business's needs
• Information sharing with suppliers includes providing demand forecasts and production schedules
• What does supplier development aim to enhance?

  Capabilities and processes
• Delivery terms in a supplier contract specify timelines, quantities, and quality standards
• What is the primary goal of supplier performance evaluation?

  Assess ability to meet business needs
• On-time delivery measures a supplier's ability to meet agreed delivery schedules.

  True
• Match the supplier KPI with its description:

  On-Time Delivery ↔️ Meets agreed delivery schedules

  Quality ↔️ Consistency of goods/services

  Cost ↔️ Competitiveness of pricing

  Responsiveness ↔️ Flexibility in addressing issues
• Proactive communication is crucial for resolving supplier issues and disputes effectively.


  True
• Collaborative efforts with suppliers to identify root causes and implement corrective actions help preserve the relationship.

  True
• What is a supplier in business terms?

  An entity that provides goods or services
• Different supplier types play complementary roles in enabling a business to operate effectively.


  True
• Raw materials suppliers provide basic materials like wood, metal, or plastic
• Why are suppliers critical to a business's success?

  Ensure consistent operations
• Raw materials suppliers provide basic materials used in manufacturing.

  True
• Finished goods suppliers provide ready-made products for resale
• Steps in the process of selecting suppliers

  1️⃣ Evaluate quality

  2️⃣ Balance cost

  3️⃣ Assess reliability

  4️⃣ Consider flexibility

  5️⃣ Review reputation
• Reliability is evaluated to ensure suppliers meet delivery times and quantities
• What is the purpose of Supplier Relationship Management (SRM)?

  Maximize relationship value
• Regular communication with suppliers improves responsiveness to business needs.

  True
• What is the primary outcome of fostering strong supplier relationships through collaboration and communication?

  Reliable supply of goods
• By fostering strong supplier relationships, businesses can secure a reliable supply of high-quality goods and services to meet customer needs