2 Sep 2022

79

How to Deal With Problems With Suppliers

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Academic level: College

Paper type: Essay (Any Type)

Words: 604

Pages: 2

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Any enterprise encounters challenges when it comes to ensuring that it has a steady supply of the appropriate goods, at the ideal place, and at the needed time. The major reason behind these issues revolves around the idea that every supplier has their unique way of undertaking business activities, which require companies to adapt. The major goal in this case entails utilizing suppliers to facilitate in driving costs down, boost profitability, as well as improve the flow and quality of products (Chen & Wu, 2013) . In this case, it becomes increasingly important to establish clear anticipations concerning the quality of products and services and having a process that can ensure they are usually upheld. When suppliers and buyers operate together, they are capable of realizing operational efficiencies while at the same time attaining their objectives better (Sawik, 2013) . Thus, the paper discusses the diverse problems associated with suppliers.

One of the major problems associated with suppliers revolves around the idea when they stipulate they are capable of attaining a goal when they really cannot. In this case, it is vital to note that nothing seems more frustrating than when a client does both the path of development but later realizes that the supplier is incapable or is not willing to meet the anticipated quality demands in a consistent manner. Here, inconsistencies might prevail in instances whereby suppliers deliver products of services through diverse delay tactics, such as when they argue they are purchasing a new equipment, are hiring processionals of handling the issue, or offering optimism that they are working on the situation when they are not (Jadidi, Zolfaghari, & Cavalieri, 2014) . With these kinds of issues that the suppliers raise, it becomes apparent the clients might not attain the consistent quality they need.

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The issue of random prices also serves as a key problem associated with suppliers, which they do through various ways. For instance, suppliers might quote a price then raise the costs after submission of the purchase order. They might sight ‘unforeseen’ issues in production or higher costs of input material as their reasons. Suppliers might also make slight adjustments in the products, which would result to significant rise in process. When switching the specifications, requirements, or input materials, the rises in price are warranted (Jadidi, Zolfaghari, & Cavalieri, 2014) . However, when it comes to minor adjustments attributed to packaging or formulation tweaking, they should not result to major rises in price. Additionally, issues with suppliers might result from price raises from order to order. The suppliers might state an increase in the costs of raw materials, exchange rates, or labor increases as the causes. Severally, this might serve as the issue, such as once on a yearly basis rather than not for every other order (Chen & Wu, 2013) .

Moreover, lack of reliability leads to problems with suppliers. Either via late delivery of products, issues in consistent production, errors in communication, and via a myriad of issues that the suppliers raise, these reveal that suppliers do not understand what it entails to supply in a successful manner. In the event that improvements are not realized even after an issue has been raised, this reveals that suppliers do not respect their customers (Sawik, 2013) . Additionally, the lack of transparency issue contributes means that suppliers are incapable of exercising an honest and open discussion concerning collective business. If suppliers are reluctant in doing so in a purposeful manner or when they withhold vital information or when they fail to communicate probable issues, customers should consider ending the contract or relationships immediately. Such kinds of issues are not worth the money, time, or energy of the customers (Jadidi, Zolfaghari, & Cavalieri, 2014) . Hence, addressing the problems with suppliers would contribute to improved business transactions through the development of mutually beneficial relationships.

References

Chen, P. S., & Wu, M. T. (2013). A modified failure mode and effects analysis method for supplier selection problems in the supply chain risk environment: A case study. Computers & Industrial Engineering, 66 (4), 634-642.

Jadidi, O. M., Zolfaghari, S., & Cavalieri, S. (2014). new normalized goal programming model for multi-objective problems: A case of supplier selection and order allocation. International Journal of Production Economics, 148 , 158-165.

Sawik, T. (2013). Integrated selection of suppliers and scheduling of customer orders in the presence of supply chain disruption risks. International Journal of Production Research, 51 (23-24), 7006-7022.

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StudyBounty. (2023, September 14). How to Deal With Problems With Suppliers.
https://studybounty.com/how-to-deal-with-problems-with-suppliers-essay

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