What are advantages and disadvantages of suppliers?

What are advantages and disadvantages of suppliers?

8 Cards in this Set

Company nominated supplier : advantages	•Businesses can negotiate price especially when buying In bulk •goods are available on credit •a wide range of items which aren’t easily sourced by hospitality businesses
Specialist supplier Disadvantages	• fewer specialist suppliers so prices = higher

What are the suppliers problems?

From supplier to customer: 5 challenges in the supply chain

• Trustworthy suppliers. The supply chain is built on the trust of suppliers who fulfil your orders in a timely and reliable manner. …
• Cost-control. …
• Market growth and innovation. …
• Global risks. …
• Staff. …
• What can you do to solve supply chain challenges?

Which one is a disadvantage of the few suppliers strategy?

However, one major downside of this strategy is that it can ensure high costs to the company if the partners are changed. This is because companies are known to be loyal to their suppliers as they are important and integrated into their complete supply chain operations for maximized efficiency and effectiveness.

What are the disadvantages of local suppliers?

Disadvantages of Local Sourcing Possible resistance to change. Undesirable local publicity can arise when contracts need to be terminated. Supplier may come to depend too much on the buyer leading to complacency. Policy issues around encouraging competition and positive discrimination of local suppliers.

What are the disadvantages of supply chain?

Major limitation of process of supply chain management is that it is quite expensive to implement. It requires large investment in terms of time, money and other resources that become unaffordable for small businesses.

How can suppliers affect a business?

Suppliers provide the transportation of those materials. Suppliers provide a company with the services it uses in providing goods and service to its customer. Without a solid relationship with its suppliers, a company can not offer its own customers a consistently high quality product or service.

What are the benefits and challenges of supplier?

There are several benefits associated with supplier relationship management, and they all culminate in a healthier bottom line.

• Reduced costs. …
• Increased efficiency. …
• Minimises price volatility. …
• Consolidation of the supply chain. …
• Outsourcing certain activities. …
• Continual improvement of operations.

What are some challenges risks in managing suppliers?

Major Issues Facing Supply Chain Managers

• Managing customer expectations. One of the challenges of effective supply chain management is managing customer expectations. …
• Managing suppliers. …
• Maintaining quality and sustainability. …
• Access to data. …
• Risk mitigation.

What are the barriers to supplier development?

The barriers to supplier development are examined under the broad headings of: poor communication and feedback, supplier complacency, misguided supplier improvement objectives, the credibility of the customer as viewed by their suppliers, and misconceptions regarding purchasing power.

Which of the following is not an advantage of the few suppliers concept?

Which of the following is not an advantage of the “few suppliers” concept? Sharing trade secrets between firms is not an advantage of the “few suppliers” concept. Trade secrets are part of what gives a firm a competitive advantage, and it is unlikely that such information would ever be shared with an outside firm.

Which of these is a disadvantage of outsourcing?

The risk of losing sensitive data and the loss of confidentiality is perhaps the most significant disadvantage of outsourcing business processes.

What are the disadvantages of dual sourcing?

One of the biggest disadvantages of dual sourcing is the possibility of inconsistent quality between your two suppliers. If one of your suppliers provides superior quality, but your other supplier’s quality isn’t quite as good, that may cause you problems.

What are the disadvantages of single supply?

Disadvantages of single supplier strategy increased vulnerability of supply. increased risk of supply interruption. greater dependency between your business and the supplier.

What are the disadvantages of sourcing?

Disadvantages pertain to the following: Quality Loss – While raw materials and parts may be cheaper, this could also lead to a loss in quality. Sourcing companies are stimulated by profit and due to fixed contracts, the profit will therefore be reduced through production cost reduction.

What are the disadvantages of local trade?

The disadvantages of domestic trade are that they limit the number of available products, and they limit pricing.

What’s the advantages and disadvantages?

As nouns, the difference between disadvantage and advantage is that disadvantage is a weakness or undesirable characteristic; a con while the advantage is any condition, circumstance, opportunity, or means, particularly favorable to success, or any desired end.

What are the disadvantages of logistics?

Top 5 Global Logistics Challenges

• Counterfeiting.
• Theft of goods.
• Lack of accurate data on shipping conditions.
• Manual processes.
• Lack of shipment updates for end customers.

What is the disadvantage of e supply chain management?

While the implementation of e-supply chain management can provide efficiency improvements, it also suffers from several weaknesses ranging from cyber attacks and reliability of access to uncertain return on investment.