Biology Forums - Study Force

Bill is a production manager at a bicycle manufacturing company and needs to find a new supplier. Explain the steps he should take in choosing the best supplier.

Selecting suppliers is an important part of the make-or-buy decision. After all, establishing a business relationship with a supplier is like entering into a partnership. A company's first step in finding suppliers involves clearly defining and understanding its needs so that it can find suppliers that truly fit its requirements. Cost is always a factor, but it should never be the sole factor. For example, one supplier may offer to manufacture a part for significantly less but of such poor quality that later repairs or recalls would end up costing a company more than the cost of producing quality parts; its reputation would also be affected. Customers perceive a product as a single entity—not as component piece-parts provided by different suppliers. Customers will hold the company responsible even if an individual supplier is to blame for making a faulty part or missing a deadline and causing a delay. So having a good supplier that meets a company's needs and cares about a company's customers as if they were its own is an invaluable asset. Understanding these needs before choosing a supplier will make the process easier and more beneficial in the end.

Thanks :D