Working with suppliers

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Definition of suppliers
an organisation that provides a business with the material it needs
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factors to consider when choosing a supplier
prices, payment terms, quality, capacity, reliability, flexibility
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What do business gain from lower prices ?
it can reduce selling prices and gain competitive lower prices. it can benefit from added value
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Definition of payment terms
the arrangements made about the timing of payments and any conditions
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What are the two reasons for this type of agreements
cash flow cycle, winning business
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What does quality enable a business to do
increase volume of its sales, increase its selling price and profit, create a usp enhance its reputation and customer brand
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definition just in time
a system where items of stock arrive just in time for production or sale
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definition of flexibility
where organization need to make radical changes to orders from suppliers
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What are three types of suppliers ?
accessories, capital items, components and suppliers
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definition of accessories
inexpensive items that are brought regularly
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definition of capital items
spending on equipment machinery and premises major investment not on a regular basis
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definition of components
these are the general inputs into the transformers process
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Card 2

Front

factors to consider when choosing a supplier

Back

prices, payment terms, quality, capacity, reliability, flexibility

Card 3

Front

What do business gain from lower prices ?

Back

Preview of the front of card 3

Card 4

Front

Definition of payment terms

Back

Preview of the front of card 4

Card 5

Front

What are the two reasons for this type of agreements

Back

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