Choosing Suppliers (AQA GCSE Business): Revision Note

If raw materials or components are poor quality, then the final product may not meet the desired standards

• E.g. A construction company needs high-quality steel to ensure the structural integrity of a building.

Stocks need to be delivered on time, at a reasonable cost, and in a reliable manner

This is particularly important for businesses operating just in time manufacturing

• E.g. A car manufacturer must have components delivered on time to avoid delays in production

Businesses need to ensure that the raw materials they need are readily available (this is different to delivery on time)

E.g. Tesla uses cobalt in their batteries and needs to ensure they have a steady supply of this rare earth metal

Businesses look to get the best possible price for raw materials and components without sacrificing quality

E.g. A textile manufacturer needs to source cotton at the lowest possible price to remain competitive in the market

Businesses often choose to work with reliable suppliers who can deliver quality materials on time and at a reasonable cost

E.g. A construction company places orders with trusted suppliers to ensure that their materials meet safety standards