Alexandoy
VIP Contributor
In my experience with a retailing business of computer supplies it was fun at first to have only 2 suppliers because we get to choose the lowest price all the time. But sooner than later I realized that we needed another supplier. That was the time that prices of computer supplies were going up. Having 3 suppliers seemed enough again and our business operation went smoothly.
When there was a shortage of supplies due to the importation issues of our 3 suppliers we were forced to source out from other suppliers. Oh, the prices were exorbitant but we had no choice because our customers were waiting for the promised delivery. That was a neat lesson for us to get more suppliers. Now my guiding rate in the number of suppliers for a retailing business is at least 5. As they usually say, the more, the merrier because suppliers should be considered partners in business. Give them the treatment they way you treat your customers.
When there was a shortage of supplies due to the importation issues of our 3 suppliers we were forced to source out from other suppliers. Oh, the prices were exorbitant but we had no choice because our customers were waiting for the promised delivery. That was a neat lesson for us to get more suppliers. Now my guiding rate in the number of suppliers for a retailing business is at least 5. As they usually say, the more, the merrier because suppliers should be considered partners in business. Give them the treatment they way you treat your customers.