Stock and Suppliers
It does not matter what sort of business it is, but very few businesses operate in total vertical isolation. The clear majority of businesses operate in a “quasi partnership” position with others, either via the supply of stock for resale or the use of their services as part of a wider offering.
Suppliers, contractors, providers etc, must all be viewed in the context of being important operational elements to your business. A failure by one, can have significant flow on implications to your business.
Strong relationships and a full operational understanding of the quality of your supplier’s delivery will not only position for more balanced rates/costings, but will also reduce your operational risk.
By taking a balanced, matrix approach to cost, quality and risk, you will also avoid the pitfalls associated with just taking the “cheap supplier”.