Podcast
Questions and Answers
Which of the following factors is NOT included in the Supplier Evaluation Matrix?
Which of the following factors is NOT included in the Supplier Evaluation Matrix?
Ethical trading standards require suppliers to manage their sourcing and manufacturing processes ethically.
Ethical trading standards require suppliers to manage their sourcing and manufacturing processes ethically.
True
What is one benefit of maintaining regular communication between a supplier representative and the buyer?
What is one benefit of maintaining regular communication between a supplier representative and the buyer?
Faster problem resolution
Suppliers that work on specific skills and have increasing business according to competence are referred to as ______.
Suppliers that work on specific skills and have increasing business according to competence are referred to as ______.
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Match the following types of suppliers with their characteristics:
Match the following types of suppliers with their characteristics:
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What is a possible danger of the partnership approach in supplier relationships?
What is a possible danger of the partnership approach in supplier relationships?
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Fashion innovation investment is solely the responsibility of the retailer.
Fashion innovation investment is solely the responsibility of the retailer.
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Which of the following factors is NOT considered when selecting a supplier for product lines?
Which of the following factors is NOT considered when selecting a supplier for product lines?
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What is one key aspect of creating strategic (partnering) relationships between retailers and suppliers?
What is one key aspect of creating strategic (partnering) relationships between retailers and suppliers?
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The relationship between buyer and supplier has improved in the past few years.
The relationship between buyer and supplier has improved in the past few years.
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List two key barriers to successful supply chain partnerships.
List two key barriers to successful supply chain partnerships.
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Partners in the supply chain should aim to build a relationship that goes from awareness to __________.
Partners in the supply chain should aim to build a relationship that goes from awareness to __________.
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Match the factors to their descriptions related to supplier evaluation:
Match the factors to their descriptions related to supplier evaluation:
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Which aspect is essential for ensuring that a supplier meets a business's quality standards?
Which aspect is essential for ensuring that a supplier meets a business's quality standards?
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Economies of scale lead to higher costs for manufacturers.
Economies of scale lead to higher costs for manufacturers.
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What is one of the main expectations suppliers must meet regarding product delivery?
What is one of the main expectations suppliers must meet regarding product delivery?
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The process of selecting lines to finalize the product assortment requires __________ from the entire team.
The process of selecting lines to finalize the product assortment requires __________ from the entire team.
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Which of the following is a common excuse from suppliers when dealing with buyers?
Which of the following is a common excuse from suppliers when dealing with buyers?
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What is a key quality buyers look for in a supplier?
What is a key quality buyers look for in a supplier?
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Confidentiality is a key quality for suppliers to maintain competitive advantage.
Confidentiality is a key quality for suppliers to maintain competitive advantage.
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What is one way buyers can improve their time management when sourcing?
What is one way buyers can improve their time management when sourcing?
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Buyers need to review suppliers' trading performance using both qualitative and __________ criteria.
Buyers need to review suppliers' trading performance using both qualitative and __________ criteria.
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Match the following performance criteria with their definitions.
Match the following performance criteria with their definitions.
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Which of the following is a reason to achieve economies of scale?
Which of the following is a reason to achieve economies of scale?
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Fashion innovation investment is irrelevant in supplier evaluation.
Fashion innovation investment is irrelevant in supplier evaluation.
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Name one aspect that buyers expect from vendors.
Name one aspect that buyers expect from vendors.
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The buyer-vendor relationship heavily relies on __________ communication.
The buyer-vendor relationship heavily relies on __________ communication.
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Which method is commonly used to evaluate suppliers?
Which method is commonly used to evaluate suppliers?
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Buyers should make snap decisions when changing their vendor base.
Buyers should make snap decisions when changing their vendor base.
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What is the purpose of maintaining ethical trading standards?
What is the purpose of maintaining ethical trading standards?
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Suppliers must maintain __________ in all dealings to build trust with buyers.
Suppliers must maintain __________ in all dealings to build trust with buyers.
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Which statement best describes the importance of quality standards in manufacturing?
Which statement best describes the importance of quality standards in manufacturing?
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What is one benefit of using a supplier evaluation matrix?
What is one benefit of using a supplier evaluation matrix?
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Study Notes
Sourcing and Supply Chain Management Lecture 9
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Selecting vendors and building partnerships is crucial for retailer success
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Knowing how to locate vendors, understanding different vendor types, and evaluating vendor partnerships are essential skills
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Buyers use criteria like merchandise, prices, vendor distribution policies, reputation, reliability, terms, and services offered to select vendors
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After developing a merchandise plan, locating suppliers who meet customer needs is important
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Selecting the right vendors directly impacts customer satisfaction
Types of Vendors
- Buyers can choose to purchase directly from producers or use intermediaries like wholesalers or manufacturer reps
- Typical vendors include manufacturers, wholesalers, and manufacturer reps
Manufacturers
- Many fashion buyers purchase directly from manufacturers
- Minimum order requirements often exist, potentially requiring intermediaries
Private Label Brands
- Retailers establish private label brands to offer unique merchandise not found elsewhere
- Purchasing directly from manufacturers allows cost reduction by eliminating intermediaries
Wholesalers
- Buyers may use wholesalers when direct purchase from manufacturers isn't possible
- Wholesalers purchase large quantities from manufacturers and resell in smaller amounts to retailers
Manufacturer Representatives
- Manufacturer representatives act as agents for manufacturers
- They don't own the merchandise, instead, they sell it on behalf of the manufacturer
- Fees are typically a percentage of net sales
- Reps facilitate showrooms for vendors
Making Contact with Suppliers/Vendors
- Buyers can initiate contact with vendors through trade shows, appointments, or through buying offices
- Magazines and industry trade journals are good sources for finding new suppliers
- Other buyers' suggestions are invaluable
Supplier and Vendor Initiated Contacts
- Some vendors send representatives to regularly check sales and stock levels
- Smaller independent stores prefer vendors who regularly visit and monitor stocks
- Reliance on rep visits allows keeping up with various vendor merchandise prices and offerings, allowing timely action and market analysis
Criteria for Selecting Vendors
- Key criteria for evaluating vendors include merchandise, prices offered, vendor distribution policies, vendor reputation, reliability, terms, and services offered
Merchandise and Prices Offered
- Ensuring merchandise aligns with customer needs and expectations is important
- Delivering the same quality as shown in samples is a must; vendors should meet quality standards consistently
National Brand/Own Label
- National brands have established recognition and customer trust
- Private label brands can offer unique merchandise not carried by other stores, potentially leading to higher profit margins
- Cost price is an essential factor when selecting a supplier, but other factors should also be considered, like brand compatibility (and their qualities).
Vendor Distribution Policies
- Exclusive distribution grants a vendor the sole right to sell products within a specific area to a certain retailer
- Designers frequently use exclusive distribution to maintain product uniqueness
Vendors
- Price is a key element influencing buyer vendor choice
- Store image and target customer will determine the acceptable price range for specific merchandise
- The vendor's reputation is very important, and buyer feedback is used to gauge quality control and the ability to resolve issues
Vendor Terms Offered
- Some retailers need cash discounts; others might want more time to pay
- Negotiated discounts should be comparable to industry standards
Services Provided
- Comprehensive vendor services, such as advertising cost sharing, return/exchange privileges, are critical for long-term relationships
- Participation in store promotions or clothing item prizes could increase sales and marketing
- Sales training provided by vendors is essential, aiding retailers in effectively selling inventory
- Assistance in effectively managing stock control is critical
- Pre-ticketing of merchandise significantly streamlines stock handling, saving time and resources
"Suppliers and retailers are essential to each other if either is to achieve their business objectives"
Buying Cycle for Fashion Products
- This detailed process outlines buying procedures for fashion products
The Fashion Garment Supply Chain
- The fashion supply chain's steps are graphically displayed from fibre to consumer
Managing the Supply Base
- Different performance levels are used to measure suppliers, which include varied criteria
How Buyers and Suppliers Work Together
- This explains the dynamics of the buyer-supplier relationship
Key Qualities to Look for in a Supplier
- Essential qualities of trustworthy vendors, outlining both professional and interpersonal skills are essential
Working successfully with suppliers requires...
Suppliers May Come to Buyer's Attention via:
- Various means of vendor discovery, like word of mouth, direct contact, trade magazines, management suggestions, or trade embassy involvement
Buyers need to constantly review each supplier's
Qualitative Performance Criteria
- Several factors influence a vendor's qualitative performance, including the level of fashion design innovation investment, general efficiency of the entire trading operation, and ethical trading standards
Quantitative Performance Criteria
- A vendor’s quantitative performance is measured by their investment in fashion, design, and innovative levels, the general efficiency of their operating procedures, and adherence to ethical standards established by the buyer's organization and international laws
Buyers are Under Pressure
- There's constant pressure to reduce vendor quantity to increase economies of scale and streamline transactions
By Rationalising...
- Rationalizing supplier numbers leads to several advantages
One Way to Evaluate Suppliers is to Set Up a Matrix...
- A method for evaluating a supplier's performance using relevant metrics and their weighting
Developing Product Categories and Selecting Lines
- Buyers frequently consider future seasonal merchandise while developing product categories and selecting product lines
Basis for Strong Partnership
- Being prompt in keeping appointments, actively listening to vendor presentations, confirming or canceling orders promptly, providing feedback promptly, and making vendor changes after proper analysis are essential for strong partnerships
What Do Buyers Expect From Vendors
- Buyers require assistance with inventory management, sales training, fixture arrangement, visually appealing displays, on-time delivery of quality merchandise, and efficient order fulfillment
Closer Buyer-Vendor Relationships
- Vendors and buyers communicate to address issues and streamline the ordering process; barcoding and computerized systems help monitor stock levels and identify problems
Choosing Product Categories
- Listing potential fashion product categories; determining the most suitable product category is key.
Selecting Lines
- This is the crucial step in choosing suitable merchandise
Relationship Between Buyer and Supplier
Buyer/Supplier Perceptions of Each Other
- Buyers and suppliers may have differing views on each other's behaviour
Building Partnering Relationship
- This is a key aspect of forming mutually beneficial vendor partnerships
The Key Barriers To Successful Supply Chain Partnerships
- Several factors hinder successful partnerships, including lack of trust, communication breakdowns, inefficiencies, and high investment amounts
Selecting the Right Supplier
Other Factors
- Several factors play a role in selecting the ideal supplier, like product quality, speed of delivery, fashion, and communication skills
- Compatibility between buyer and supplier teams, ethical sourcing and production, and the general ability of the vendor to anticipate fashion and trend needs, should be high on the buyer's list of priorities
Product Quality
- Ensuring products meet established standards of quality and durability is essential (to avoid returns)
Product Delivery
- Timely delivery is critical; the supplier should make planned deliveries within the specified time frame
Product Fashion Level
- The supplier should fully grasp the required fashion level; interpreting fashion requirements accurately is essential
Communication Efficiency
- The supplier should maintain regular and clear communication channels
Compatible Personality
- Ensuring compatibility between buyer and supplier representatives is pivotal for a positive interaction
Ethically managed production
- Sourcing and manufacturing should meet ethical standards
Building Blocks for Strategic Partnerships
- Key elements of building strong vendor partnerships include maintaining trust, having open communication lines, working with a mutual sense of goal accomplishment, and displaying consistency in commitment to the relationship
Strategic (Partnering) Relationships
- Retailers and suppliers who are invested in maintaining long-term relationships are those who see partnerships as providing mutually beneficially opportunities to engage with each other
Dangers of Partnership Approach
- Interdependence and complacency can be harmful to the partnership
A Portfolio of Supplier Relationships
- Categorizing suppliers and their role in the relationship provides an organized overview of relationships
A Continuum of Retailer-Supplier Relationships Development
- This demonstrates the continuum of vendor-buyer relationship development
Questions on Managing the Supply Base
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