SUPPLIERS AT CADBURYS & ASDA

Suppliers

Suppliers are people who sell products, raw materials or give a service to a business.  Good relationships with this stakeholder group can help a company’s operations run smoothly. By working well with suppliers, businesses can encourage suppliers to prioritise their account, deliver services and products on time and be as efficient as possible. Suppliers have an interest in the company they supply doing well – if the company does badly they could lose a customer. A supplier is an external stakeholder. The reason why suppliers are an external stakeholder is because they are group outside of the business who have an influence.

Cadbury suppliers

This is what a Cadbury supplier might say:  We are a group of Cadbury’s suppliers. Some of us supply Cadbury with the ingredients to make its products. This lady here sends Cadbury its cardboard boxes to pack all the products into. This guy here prints the wrappers. And this chap here supplies Cadbury with spare parts for the machines when they break down. Some of us are highly dependent on business from Cadbury. If Cadbury stopped buying from us we could be in trouble. We also expect Cadbury to be efficient when dealing with us. We like them to pay us on time because some of us are only small businesses and could have cash flow problems if the company was a slow payer.

The Cadbury supplier would be supplying the business with the ingredients to make the chocolate such as: milk, cocoa beans, sugar etc.. Firms get the resources they need to produce goods and services from suppliers. Businesses should have effective relationships with their suppliers in order to get good quality resources at reasonable prices. This is a two-way process as suppliers depend on the firms they supply.   
       

How suppliers influence Cadbury aims:

Suppliers can affect your availability of product based on their inventory or delivery time. Suppliers can affect your costs based on their prices changing, their credit terms, etc.

•  Quality: Supplier components can positively or negatively affect the quality of your product. Higher quality increases customer satisfaction and decreases returns, which adds cash to the bottom line.
• Timeliness: Their timely deliveries are crucial to how customers view your reliability. A quick turnaround can become the key to minimizing your inventory, which in turn translates to less risk of inventory obsolescence and lower cash needs.
• Competitiveness: They can give you the one-up on your competition based on their pricing, quality, reliability, technological breakthroughs and knowledge of industry trends.
•   Innovation: Suppliers can make major contributions to your new product development. Remember, they live their product more than you do; they're working to be on the cutting edge of innovation for their product. The good ones will understand your company, its industry and needs, and can help you tweak your new idea.
• Finance: If you've proven to be a considerate, loyal and paying customer, you may be able to tap into your suppliers for additional financing once you hit growth mode--or if you run into a cash crunch. That financing may take the form of postponed debt, extended terms on new purchases, a loan, or an investment in your company.
All of these improve your cash position. - http://www.entrepreneur.com/article/206530
• Suppliers can decide whether to raise prices for orders which can obviously affect a firm's profits. Also a supplier's reliability could affect production. If orders do not arrive on time finished goods may not be ready for shipping to customers. Suppliers can also change credit terms which may have cash flow issues for a company and they could decide whether or not to allow discounts for bulk orders or loyal customers. 
  
  
  Suppliers can influence a business by the quality and price of what they supply, as well as the speed at which they supply it. If there are few suppliers offering the same product or there are no substitutes, a supplier will have a lot of power over a business demanding this product, and can raise its prices. However, if there are many suppliers of a particular product or service, it is the business which has power over the supplier.
  
  
  
  
  http://www.supplymanagement.com/analysis/features/2009/cadburys-to-improve-supplier-conditions-with-fairtrade-agreement/ - article to show Cadburys to improve supplier conditions with fairtrade agreement. 
  
  
  How Cadbury suppliers interests may conflict with other stakeholders: 
  
  
  There would be conflict between the suppliers and customers because the customers want cheap prices and sometimes the suppliers cannot get the goods or ingredients at a cheap price. If the suppliers cannot get the goods at a cheap price then. 
  
  
  
  

  Asda Suppliers

  
  

  Asda offer their customers a wide range of products and items. For Asda to actually have these products and items to offer, Asda need somewhere to get them from, this is where the suppliers come in.

  
  

  Asda have many different suppliers because there are many products that Asda offer to the public. Some of the suppliers that Asda have are:

  
  

  Crisps - Walkers

  Chocolate - Cadbury

  Chocolate - Nestle

  Drinks - Coca Cola

  Water - Volvic

  
  

  Those are just some of the suppliers at Asda and they offer different products. Suppliers of Asda are also external stakeholders as they influence the business to make profit by providing them with their products. They want the business to make profit, as they want other orders and to get their money as quick as possible. Asda gets most of its products from suppliers such as: Cadbury, Kelloggs, Coca Cola and many other well known branded products. Without these suppliers Asda wouldn’t have good enough goods to meet their customer’s demands, which means they would end up loosing out on profit.

  
  

  Asda have an actual website for their suppliers to visit and to register if they want to be potential suppliers for the supermarket. The website for the Asda suppliers is http://www.asdasupplier.com/. The website gives information on what Asda is and what they do and general information about the business. For example: 

  
  

  ‘The purpose of this website is to aid communication between ASDA and our supplier base. It should be a way for us to keep you up to date with what’s happening in ASDA, as well as a place where you can find contacts, policies and resources to help you get things done in ASDA. Whether you are a new supplier starting to work with us, or an existing supplier with specific queries, the site should be here to help you along, smooth our working relationship, and answer your questions. We’ve built the site with input from long-established and new suppliers, but if you have questions that we haven’t managed to answer here, please let us know.’ -  http://www.asdasupplier.com 

  How suppliers influence Asda aims:

  
  

  Suppliers can affect your availability of product based on their inventory or delivery time. Suppliers can affect your costs based on their prices changing, their credit terms, etc.

  •  Quality: Supplier components can positively or negatively affect the quality of your product. Higher quality increases customer satisfaction and decreases returns, which adds cash to the bottom line.
  • Timeliness: Their timely deliveries are crucial to how customers view your reliability. A quick turnaround can become the key to minimizing your inventory, which in turn translates to less risk of inventory obsolescence and lower cash needs.
  • Competitiveness: They can give you the one-up on your competition based on their pricing, quality, reliability, technological breakthroughs and knowledge of industry trends.
  •   Innovation: Suppliers can make major contributions to your new product development. Remember, they live their product more than you do; they're working to be on the cutting edge of innovation for their product. The good ones will understand your company, its industry and needs, and can help you tweak your new idea.
  • Finance: If you've proven to be a considerate, loyal and paying customer, you may be able to tap into your suppliers for additional financing once you hit growth mode--or if you run into a cash crunch. That financing may take the form of postponed debt, extended terms on new purchases, a loan, or an investment in your company.
All of these improve your cash position. - http://www.entrepreneur.com/article/206530
  • Suppliers can decide whether to raise prices for orders which can obviously affect a firm's profits. Also a supplier's reliability could affect production. If orders do not arrive on time finished goods may not be ready for shipping to customers. Suppliers can also change credit terms which may have cash flow issues for a company and they could decide whether or not to allow discounts for bulk orders or loyal customers. 

  
  
  Suppliers can influence a business by the quality and price of what they supply, as well as the speed at which they supply it. If there are few suppliers offering the same product or there are no substitutes, a supplier will have a lot of power over a business demanding this product, and can raise its prices. However, if there are many suppliers of a particular product or service, it is the business which has power over the supplier. 
  
  http://www.supplymanagement.com/news/2012/asda-buys-into-closer-collaboration-between-suppliers/  - This news article shows how Asda have told their existing suppliers to work together in order to reduce cost, waste and risk. 

How Asda suppliers interests may conflict with other stakeholders: 

There would be conflict between the suppliers and customers because the customers want cheap prices and sometimes the suppliers cannot get the goods or ingredients at a cheap price. If the suppliers cannot get the goods at a cheap price then.