Working with suppliers

• Without appropriate stock control, businesses can run out of stock, which loses them sales and potentially customers.
• Holding too much stock can also have negative consequences:

  • high storage costs, which may mean the business has to raise its prices
  • increased waste, if the products are perishable
  • reduced income, if the business needs to sell off excess stock at a reduced price
• Finding suppliers that can meet all of a business’ needs is essential for a business to remain competitive and successful.
• Key factors a business needs to consider when building a relationship with suppliers:

  • Cost
  • Quality
  • Delivery
  • Availability and capacity
  • Trust
• The quality of the raw materials or services provided by suppliers can have an impact on a business’ reputation.
• Businesses aim to have high customer satisfaction by meeting all of their customers’ needs in a simple, quick and effective manner. By keeping customer satisfaction high, businesses are more likely to get repeat customers, which will improve sales figures and profits.
• Stock can consist of:

  • raw materials waiting to be used in production
  • work in progress
  • finished stock waiting to be delivered