The reason we have many suppliers is because we need local service or stocking of goodsAnswer
This is a true statement for a very small percentage of the purchases. For any item, there may be an emergency need that cannot wait until the next day, or the day after. But, this is often used as an excuse for excessive levels of in-house inventory and for requiring only local suppliers. Again, the focus here is on service levels. And, the way to improve service levels is to aggregate the business, to make it more attractive to potential suppliers. The dollar levels are bigger, and multi-site needs are handled in a more uniform manner. Still, even when local suppliers are needed, more dollars can be aggregated onto fewer local suppliers by grouping related items together. For instance, plumbing supplies and light bulbs and electrical switches can all be bought from a large hardware chain, rather than from 3 or 4 different corner hardware stores. And, in doing so, you are selecting a supplier who has a greater likelihood of having such things as an e-Commerce infrastructure, and efficient billing system, and modern business approaches.
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e-Sourcing FAQ Is Online Bidding Right For Me? The reason we have many suppliers is because we need local service or stocking of goods
e-Sourcing FAQ Is Online Bidding Right For Me? The reason we have many suppliers is because we need local service or stocking of goods