4.6 Working with suppliers

• A distributor buys directly from retailers to sell to manufacturers.

  False
• Distributors sell directly to consumers.

  False
• What is the primary goal of the supplier selection process?

  Choose the best supplier
• Match the benefit of reliable suppliers with its explanation:

  Cost Reduction ↔️ Minimizes expenses from faulty deliveries

  Customer Trust ↔️ Ensures reliable product availability

  Consistent Supply ↔️ Maintains uninterrupted production

  Improved Efficiency ↔️ Creates a stable supply chain
• Building trust with customers is achieved through reliable product availability.
• Gathering information on available suppliers is called researching potential suppliers.
• Order the steps for negotiating terms and conditions with suppliers

  1️⃣ Review supplier proposals

  2️⃣ Identify areas for negotiation

  3️⃣ Discuss contract terms

  4️⃣ Finalize agreement
• Dependability in timely deliveries ensures smooth production and customer satisfaction.

  True
• What are two key elements typically included in supplier contracts?

  Delivery schedules and quality standards
• Strategies for effective supplier communication and collaboration

  1️⃣ Establish regular touchpoints

  2️⃣ Share forecasts and plans

  3️⃣ Involve suppliers in decision-making

  4️⃣ Provide performance feedback
• What is one way to incentivize collaboration with suppliers?

  Gain-sharing programs
• What is a supplier in a business context?

  Provides goods or services
• Match the supplier type with its description:

  Manufacturer ↔️ Produces finished goods

  Distributor ↔️ Buys from manufacturers

  Wholesaler ↔️ Buys in bulk
• Each supplier type plays a distinct role in the supply chain
• Working with reliable suppliers ensures consistent supply to maintain production
• What are the three key characteristics of reliable suppliers?

  High-quality, on time, competitive prices
• How do reliable suppliers reduce costs for businesses?

  Minimize disruptions and waste
• Steps in the supplier selection process

  1️⃣ Identify needs and requirements

  2️⃣ Research potential suppliers

  3️⃣ Evaluate supplier capabilities

  4️⃣ Request quotes and proposals

  5️⃣ Negotiate terms and conditions

  6️⃣ Select the supplier
• Evaluating supplier capabilities includes assessing factors like product quality, delivery reliability, and pricing.

  True
• Which step involves choosing the supplier that offers the best value and reliability?

  Select the supplier
• What is a potential drawback of overemphasizing cost in supplier relationships?

  Compromised product quality
• Dispute resolution procedures in supplier contracts address any issues that may arise.


  True
• Frequent meetings, calls, or site visits are examples of establishing regular touchpoints.
• Providing performance feedback to suppliers helps address areas for improvement.


  True
• A manufacturer transforms raw materials into finished products
• What do manufacturers provide to businesses?

  Finished products
• Steps in the supplier selection process:

  1️⃣ Identify needs and requirements

  2️⃣ Research potential suppliers

  3️⃣ Evaluate supplier capabilities

  4️⃣ Request quotes and proposals

  5️⃣ Negotiate terms and conditions

  6️⃣ Select the supplier based on value and reliability
• How do reliable suppliers reduce costs for businesses?

  Minimize faulty deliveries
• Reliable suppliers help businesses maintain production and meet customer demand by ensuring a consistent supply of raw materials.
• Having a stable and dependable supply chain improves business efficiency.

  True
• What is the first step in the supplier selection process?

  Identify needs and requirements
• What is the purpose of requesting quotes and proposals from suppliers?

  To compare bids and terms
• Consistency in product or service quality reduces defects and maintains brand integrity.
• Effective contract management ensures businesses receive the goods or services they need.
• How does carefully managing supplier contracts support business operations?

  Balances reliability and costs
• Why is it important to share forecasts and plans with suppliers?

  To provide visibility into future needs