SuppliersSuppliers are one of the most important elements in a supply chain management. This is because the effective functioning of the business enterprise is in their hands and they perform important links in the supply chain. CCC has various suppliers but they only have only supplier for each materials. Their suppliers include raw materials which is brew, glass and bottles, machinery, transportation which is car leasing for executives and packaging.
Soles supplier is an outsourcing model which the organization tend to bind contracts with only one service provider. According to Purdum, (2007) the advantages of having a sole supplier are the suppliers understand the needs and requirements of the company, the suppliers can be involved early in the design process, a consistency of quantity and delivery time of the product and it involves a cooperative rather than competitive relationship. Having a sole supplier can also develops and maintains relationship.
For CCC, having a good relationship with the supplier is vital as the suppliers does not only ensure success but also helps to achieve their priorities in sustainable development in areas such as waste treatment, the consumption of natural resources or packaging department. Therefore they have sole supplier to maintain the good relationship.
However, as mention by (African News, 2007) having two or more supplier is vital as if one supplier have problems and cannot deliver the materials, there can be other suppliers to back up and deliver the materials on time. The sole supplier can also monopolise the company and charge higher price because the power buying is strong.
Thus, having a sole supplier is good for the company but it has been recognized that it brings with it increased risk. Therefore, the best scenario is to work with multi supplier as it will help the company to avoid...