Explain what factors will influence a business' choice of supplier

Cost: The lower the cost to the business the cheaper each unit will be and this helps the business to increase their profit. However the drawback to this is that quality can be neglected as a result.

Quality: A high quality supplier will mean that the product the business is selling can meet customers satisfaction wgich will mean it is more likely they will make repeat purchases in the future. However the downside is that it will mean that costs are more likely to increase in order to provide the quality that the business desires.

Reliablity: If a business has a short turn around for delivering their product to their consumer or if a business uses Just In Time production methods then the business will want a supplier who can deliver what the business requires quickly so that they can make their products quickly or can meet stock levels.

TC

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