4.6 Working with suppliers GapFill

When a business trades, it will need to work closely with suppliers.  This may be suppliers of raw   velour drapery materials flannel  such as steel or fabric, or this may be suppliers of component parts such as headlamps or satnav units in car assembly plants.  The suppliers may be companies that can deliver consumables such as paper and ink, or maybe provide extra staff for events such as festivals.  In short, a supplier is any company that can provide a business with resources that it needs.

In order to remain   market aggressive  compete competitive , businesses are looking for ways to cut costs so that they can keep prices low.  This is where a just-in-time system, or JIT, can help a business to become more cost-efficient.  JIT means that goods are delivered just as they are needed.  For example, on a car production line the seats will be delivered to the line the day they are needed.  This means the car manufacturer does not have to hold large stocks in a   shop warehouse park office , which reduces the costs of production.  The main disadvantage of this system is that if the van delivering the seats is late, this will hold up the production line and cost the company money.

Staff who work with suppliers to bond with them and get a close enough relationship to make   BIT HIT JIT  LIT work will be working in a department called purchasing or procurement.  This relationship between the business and the supplier is important to keep   elegance quality simplicity accuracy  levels high.  For example, school canteens will want to procure the best possible fruit and vegetables to keep the students healthy.  This is a B2B, or business to business, relationship.  Other important factors of supplier relationships and procurement are the delivery cost and  speed travel rush velocity , the   accessibility supply quality availability  of the goods and services, the costs, and the trust between the companies.