Section Six: Supplier Relationships

Purpose

You must recognize the importance of your suppliers almost to the degree of partnering. Suppliers must be capable of providing an advantage to you and must be committed to continuously improving their products and services.

Guidelines

Table 10 lists some commitments you should look for from your supplier(s).

Also, keep in mind that it is very important to always have a backup.

Table 10: Guidelines for Supplier Relationships Section

Guidelines for Supplier Relationships

Look for the following commitments from your supplier(s):

  • quality
  • consistent supply
  • commitment to research and development
  • excellent reputation
  • excellent service
  • price-sensitive towards you (flexibility)
  • financially secure
  • clear communications
  • long term relationship
  • reasonable payment terms

Example

Table 11 shows Fay’s suppliers.

Table 11: Supplier Relationships for Fay’s Variety

SUPPLIER RELATIONSHIPS

Fay’s Variety recognizes the importance of working with suppliers who are capable of providing advantages to the store and who are committed to continuously improving their products and services in addition to pricing controls.

Each of the suppliers currently working with Fay’s Variety must be in a position to offer:

  • High quality
  • Economic sensitivity
  • Consistent supply
  • Financial strength
  • Commitment to new products
  • Direct and open communications
  • Want a long term relationship
  • Service – support equipment purchased

Fay’s Variety’s strategy will be to work only with firms that meet the above criteria and to develop at least two (2) sources of supply to reduce vulnerability.

The following companies meet the above requirements:

  Grocery Produce Confectionary Deli Baked Goods Videos
Primary Colson
Beatrice
Christies
Don Kerr
Schneiders
Maple Lodge
Brantford Packer
Humpty Dumpty
Frito Lay
Schneiders
Homestead
Maple Lodge
Redi-Bake Pearson
Secondary Primo
Dare
McCormicks
The Barn
Local Farmers
Jane Parker Sam’s
Maple Leaf
Amery’s Paul’s Video

Click on Worksheet 8.5 to list your primary and secondary sources of supply.

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