Supplier relationships Ex 3: Sample answer: (246words)
　　Introduction
　　The aim of the report is to recommend a supplier for our new range of leisurewear. A committee from the Purchasing Department was presented with a shortlist of five potential suppliers to select from. The criteria considered was price, quality, delivery and flexibility.
　　Findings
　　It was found that, taking the companies’ overall ratings into consideration, there was negligible difference between suppliers. Consequently, the committee decided to narrow its focus to the area considered to be of major importance for QuayWest’s image, namely quality and price.
　　Consort Trading Despite offering the best deal financially, the company is unable to guarantee garments compliant with EU standards.
　　Samokovska Although it produces goods of an extremely high quality for exclusive markets, this supplier charge high prices,
　　part of which would necessarily be passed on to customers.
　　Namlong Sportswear The poor standards of craftsmanship make it difficult to justify paying the prices quoted.
　　Shiva Trading Sample items from this supplier show an acceptable quality level. Furthermore, the deals currently on offer make it an attractive option.
　　Hai Xin Group There is some doubt as to whether garments produced by this company would meet EU standards. In view of this, the prices appear unreasonably high.
　　Conclusions
　　It was felt to be unwise to risk compromising the company’s image by using suppliers of low quality goods. Similarly, using an expensive supplier could affect QuayWest’s reputation for value for money.
　　Recommendations
　　Consequently, it is suggested that QuayWest negotiates a contract with Shiva Trading.