4D THE IMPORTANCE

OF CHOOSING
APPROPRIATE
SUPPLIERS
Business case study
Cem’s Outdoor Gear
CEM’S OUTDOOR
GEAR
 Ustaz Cem is set to open Cem’s Outdoor Gear (COG), a business
that specializes in providing outdoor equipment and gear for outdoor
enthusiasts and adventurers. Ustaz Cem plans to choose a Premium
supplier of Outdoor related products to compete with other
businesses in the industry. COG must maintain positive relationships
with its suppliers for the two parties to effectively work together.
This is crucial as Suppliers deliver various inputs that will be used by
COG to produce an output, that is then sold to customers. Therefore,
Ustaz Cem should select suppliers with characteristics that assists the
businesses objectives and improve its competitiveness.
PRICE OF THE
SUPPLIER
 C O G needs to consider how much its various suppliers will
charge for their resources and delivery.
 The price charged by suppliers can quickly increase the
expenses of the business, which may impact how much
customers have to pay for the Businesses Outdoor gears.
 Suppliers that charge low prices can enable Ustaz Cem to
lower the overall Production costs and increase his profit.
 If the cost of supplies is low, C O G may be able to charge
customers a lower price. Reduced prices could attract cost-
conscious customers and increase the business’s
competitiveness.
 However, Ustaz chem neads to be careful, as in some cases
inputs sold for a minimal cost are of much poorer quality than
more expensive inputs.
QUALITY OF
THE SUPPLIER
The quality of resources or materials provided by suppliers influences
the overall quality of C O G’s output .The satisfaction that Ustaz cems
customers receive, is geranally based on the quality of the goods. If
the quality of the gears fails to meet customer expectations,
customers may be less satisfied and less likely to purchase from C O
G in the future. In turn, the business’s reputation may be negatively
affected, which can decrease its sales, market share, and
competitiveness. This must me avoided at all costs.

Low-quality inputs can also increase the amount of faulty products

produced, increasing the amount of waste the business generates.
Additionally, the business may have to provide refunds to any
dissatisfied customers who return defective goods.
RELIABILITY OF
THE SUPPLIER
 Moreover, Ustaz Cem should select suppliers that can
deliver the required quantity of inputs at the right time.
Reliable suppliers can enable the business to produce
goods or services on time and meet customer demand.
 On the other hand, unreliable suppliers are likely to
make errors during delivery or deliver items late,
causing a delay in the business’s production of its goods
and services.
 It is important that C O G forms strong relationships
with suppliers as this can improve reliability and help
the business meet customer demands.
 It is important for Ustaz to consider where the
suppliers are located. Suppliers that are nearby can
reduce the transportation costs of the business. If
Cem’s Outdoor Gear chooses to be
environmentally friendly, it may choose local
suppliers to minimise transportation emissions.
Choosing local suppliers also enhances the
wellbeing of the general community by creating
LOCATION more local employment.
OF THE On the other hand, Ustaz may choose suppliers that
SUPPLIER are located further away from the business, such as
suppliers located overseas, to obtain certain inputs
or access cheaper resources. However, selecting
suppliers that are distant or overseas can increase
transportation costs and increase the likelihood of
inputs arriving late or being damaged during
delivery
SOCIALLY
RESPONSIBLE
SUPPLIERS
 Furthmore, It is important for C O G to
review its CSR objectives when deciding
which suppliers to source its recourses from.
 Ustaz Cem should consider the sustainability
of his suppliers’ activities, as well as how
they treat their employees, the environment,
and the local community.
 The reputation of C O G could be impacted
by the suppliers it chooses to use.
HOW CAN USTAZ CEM
CHOOSE SUPPLIRRS
THAT MEAT CSR
OBJECTIVES?
 Here are some things C O G could take into consideration when
choosing a supplier that meet CSR objectives:
 Local suppliers: This will support the local economy and reduce
negative impact on environment Which may also lead to the
business’s reputation being improved when working with socially
responsible suppliers, therefore improving its competitiveness.
 Ethical sourcing of materials: This improves the sustainability of
the products and the environment and reduces the amount of
waste. This will also help C O G, the business can earn more
revenue as customers are likely to have a better perception of a
business that is socially responsible.
 Ustaz Cem, now a prominent figure in the
industry, decides to take a well-deserved
break in the wilderness. He sprawls out on a
chair, stylishly mismatched with his hiking
gear, as nature surrounds him.