How many suppliers would be an ideal setup?

Corzhens

Member
When we had our computer supplies retailing business, we had 3 suppliers. There used to be 4 but the regularity of our purchases had depended on the 3 so we dropped the 4th supplier in order to focus on the 3 suppliers. Naturally it is not good to have only 1 supplier but having too many suppliers may be bad for the business because suppliers are expecting regular orders and if your orders do not come, your company may be in low priority to those suppliers. So I guess 3 is a good number for the variety of suppliers.
 

explorerx7

New member
Re: How many suppliers would be an ideal setup?

The government procurement process in my country stipulates that in order to purchase goods and service there should be quotes from at least three different suppliers.This requirement sometimes poses a problem for the purchasing officers because some suppliers, especially the expensive ones, will say that they are won't be providing the quote because they do it many times and get no business so they won't be wasting their time. However, I don't believe that you have to have a lot of suppliers for a similar product, you many need 2 or three the most and if they are not able to deliver you could easily check out a new source and I don't believe they would want to refuse your business because they would always be seeking new clients.
 

Vampa

New member
Re: How many suppliers would be an ideal setup?

I think you should have at least two suppliers so in case one for some reason is unable to sell you or deliver the goods you want in time, you could get them from other suppliers. There are some retailers who I know buy half of the goods they sell from one supplier and the other half from another supplier. In case one fails to deliver goods on the agreed date, they'll just order more from the other supplier. That way what they sell never is out of stock.
 

Norm

New member
Re: How many suppliers would be an ideal setup?

We have two suppliers but since the first and main supplier is family we are key have to depend on the second one if at all as a backup. Conversely the supplier only supplies to us so we are more comfortable with the fact that we know that we both depend on each other solely for income so we never second guess if the supply will stop or terms will change because it's more like teamwork this way rather than a traditional supplier relationship.
 

xTinx

New member
Re: How many suppliers would be an ideal setup?

I personally prefer 3 suppliers for generic items such as office or cleaning supplies. Think of it as the same thing as having a Plan A, Plan B and Plan C. One way or another, when two of the suppliers run out of stock, there is always a tendency that the third one has what the other two lacked.
 
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