Page 2: Adding value
Any business involved in adding value will require:
- Excellent links with suppliers.
- Excellent internal links between activities inside the business organisation.
- Excellent links with customers.
Links with suppliers
A business needs to make sure that it gets inputs of the right quality, at the right price and at the right time. For example, a company such as Waitrose will insist that the goods it buys from outside sources meet its own very high standards. If these standards fail to be met it will not deal with that supplier.
In order for Waitrose to satisfy its customer needs, good links are essential for every activity within the supply chain. For example, receiving goods from the supplier, storing these goods, unpacking and displaying the goods, selling the goods.
Links with customers
Finally, there needs to be a very close liaison with customers so that the goods can be transferred smoothly to the next stage in the chain with no hold ups or complications.