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Qm3345

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Business
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Troy University
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Running head: BUSINESS 1
QM3345 Discussion
Name
Institution

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BUSINESS 2
QM3345 Discussion
A great attribute of reducing the supplier base to fewer suppliers is having more financial
visibility so to speak. Consolidating the supplier base translates to having a clearer picture of the
billing process within the organization. It will be easier to tracek, assess and analyse payments as
and when they come in making the cash flow cycle less strained as opposed to having many
suppliers with different payment dates. An additional advantage relating to the first one is that it
becomes easier to manage them. For starters on the cash front as the billing process will reduce
significantly, and two having less paper work to contend with. Supplier contracts are exhausting
to deal with more so from an administrative perspective, they take so much time removing one
from the core business of the organization.
Darden Foods prides itself in having an extensive or even onslot of supliers spanning in
the thousands. The organizaiton is not limited to just its country of operation but sources from
suppliers across the globe. As a result enormous amounts of money is spent on the supply chain
and in this case over $ 2billion is spent on the suppliers alone. The organization uses this method
so as to obtain competitive pricing as the supplier opportunity is competitive, to never lack the
products required and to have a diverse portfolio by having suppliers across the globe. On one
hand it looks profitable and enterprising but on the other, this calls for a lot of time spent dealing
with suppliers.
The irony of it all is that at times having extensive suppliers does not guarantee quality.
Disparities may arise as suppliers cannot possibly have identical products to the tee. The
customers will inturn notice and some may prefer the variance while others might not. The latter
might lead to customers lacking brand loyalty as they are not assured of the exact same quality

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Running head: BUSINESS 1 QM3345 Discussion Name Institution BUSINESS 2 QM3345 Discussion A great attribute of reducing the supplier base to fewer suppliers is having more financial visibility so to speak. Consolidating the supplier base translates to having a clearer picture of the billing process within the organization. It will be easier to tracek, assess and analyse payments as and when they come in making the cash flow cycle less strained as opposed to having many suppliers with different payment dates. An additional advantage relating to the first one is that it becomes easier to manage them. For starters on the cash front as the billing process will reduce significantly, and two having less paper work to contend with. Supplier contracts are exhausting to deal with more so from an administrative perspective, they take so much time removing one from the core business of the organization. Darden Foods prides itself in having an extensive or even onslot of supliers spanning in the thousands. The organizaiton is not limited to just its country of operation but sources from suppliers across the globe. As a result enormous amounts of money is spent on the supply chain and in t ...
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