Having a set of suppliers to assure continued supply of stocks


When we had our retailing business, we had only 3 suppliers and all along we thought that was enough. But when times get tough that supplies disappear from the market, we had to spend more for the rarity of supplies but the selling prices was the same which means we were losing money in fulfilling the orders of our customers. Looking back, I guess the lack of supplies will not be a problem if maybe we had at least 6 suppliers of the same products so that we can be assured of continuous supply.


A cousin who is a marketing officer of the largest supermarket here said that they always maintain at least a set of 3 suppliers for a particular item. One example is milk products that they always give priority to the 3 regular suppliers although they also entertain products of other suppliers. The quality of the product is not much of importance because their gauge is always the number of sales. However there are times that there is a shortage of products when the regular suppliers couldn’t meet the orders hence the non-regular suppliers are tapped during those times of shortage.