supplier

Examples of supplier in the following topics:

• Supplier selection

  • There are advantages to using multiple suppliers and there are advantages to using one supplier.
  • If a company uses a single supplier, it can form a partnership with that supplier.
  • The supplier may be more responsive if you are the only purchaser of an item, resulting in better supplier relations.
  • Suppliers might provide better products and services over time if they know they are competing with other suppliers.
  • Also, if a disaster happens at one supplier's warehouse, other suppliers can make up the loss.

• Measuring Vendor Performance

  • Step 3 requires searching for and evaluating possible products and suppliers.
  • Step 5 of the business buying decision process involves evaluating product and supplier performance.
  • Supplier performance evaluation teams are used to monitor activity and performance data, and to rate vendors.
  • Supplier certification teams help selected suppliers reach desired levels of quality, reduce costs, and improve service.
  • Describe the different tactics B2B companies use to search for and evaluate products and supplier performance

• The Law of Supply

  • The law of supply states that there is a positive relationship between the quantity that suppliers are willing to sell and the price level.
  • All else held constant, including the costs of production inputs, the supplier will be able to increase his return per unit of a good or service as the price for the item increases.
  • Therefore, the net return to the supplier increases as the spread or difference between the price and the cost of the good or service being sold increases.
  • The law of supply and the law of demand form the foundation for the establishment of an equilibrium--where the price to quantity combination for both suppliers and demanders are the same.
  • As the market price of a good increases, suppliers of the good will typically seek to increase the quantity supplied to the market.

• Reducing Waste and Environmental Impacts

  • Wal-Mart asked suppliers to be more efficient in their deliveries through it's Supplier Energy Efficiency Project (SEEP).
  • As a result, suppliers reduced GHG emissions by 3,300 metric tons and saved $200,000 in energy costs.
  • Sustainability has been found to be a major component of supplier relationship management as an efficient way to cut costs among retailer giants such as Wal-Mart.
  • In fact, under Wal-Mart's Supplier Energy Efficiency Project (SEEP), which is aimed at eliminating emissions from the company's supply chain, suppliers reduced GHG emissions by 3,300 metric tons and saved $200,000 in energy costs.
  • Realizing the efficiency that effective supplier relationship management creates, Wal-Mart has asked suppliers to be more efficient in managing their environmental footprint.

• Changes in Supply and Shifts in the Supply Curve

  • The supply curve depicts the supplier's positive relationship between price and quantity.
  • If the price of the good or service changes, all else held constant such as price of substitutes, the supplier will adjust the quantity supplied to the level that is consistent with its willingness to accept the prevailing price.
  • If production costs increase, the supplier will face increasing costs for each quantity level.
  • The supplier will supply less at each quantity level.
  • Lower costs would result in an increase in output, shifting the supply curve outward (to the right) and the supplier will be willing sell a larger quantity at each price level.

• Trade Credit or Accounts Payable

  • Trade credit is the largest use of capital for a majority of B2B sellers; Accounts Payable is money owed by a firm to its suppliers.
  • Accounts Payable (A/P and also known as creditors) is money owed by a business to its suppliers.
  • A/P is a form of credit that suppliers offer to their customers by allowing them to pay for a product or service after it has already been received .
  • Commonly, a supplier will ship a product, issue an invoice, and collect payment later, which describes a cash conversion cycle, a period of time during which the supplier has already paid for raw materials but hasn't been paid in return by the final customer.
  • Accounts Payable (also known as Creditors) is money owed by a business to its suppliers.

• Stages of Business Buying

  • look in company files and trade directories, contact suppliers for information, solicit proposals from known vendors, examine websites, catalogs, and trade publications
  • An organization can decide to use several suppliers, called multiple sourcing.
  • An organization can decide to use one supplier, called sole sourcing.
  • This is often discouraged unless only one supplier exists for the product; however it is fairly common because of the improved communication and stability between buyer and supplier.

• Choosing a significance level

  • A car manufacturer is considering a higher quality but more expensive supplier for window parts in its vehicles.
  • They sample a number of parts from their current supplier and also parts from the new supplier.
  • The same car manufacturer is considering a slightly more expensive supplier for parts related to safety, not windows.
  • If the durability of these safety components is shown to be better than the current supplier, they will switch manufacturers.
  • The null hypothesis would be that the suppliers' parts are equally reliable.

• TQM

  • TQM capitalizes on the involvement of management, the workforce, suppliers, and even customers in order to meet or exceed customer expectations.
  • A second TQM principle is to satisfy the supplier, which is the person or organization from whom you are purchasing goods or services.
  • External Suppliers: A company must look to satisfy their external suppliers by providing them with clear instructions and requirements and then paying them fairly and on time.
  • It is in the company's best interest that its suppliers provide quality goods or services if the company hopes to provide quality goods or services to its external customers.
  • This not only takes the burden off the supervisor, but it also motivates these internal suppliers to do better work.

• Market-Oriented Theories

  • The typical roles of supplier and consumer are reversed.
  • The suppliers are individuals, who try to sell (supply) their labor for the highest price.
  • When demand exceeds supply, suppliers can raise the price, but when supply exceeds demand, suppliers will have to decrease the price in order to make sales.
  • As the price rises, suppliers may also choose to increase production, or more suppliers may enter the business.