G free ltd intends reducing the number of suppliers they use by 50% analyse how reducing the number of suppliers could imporve g-free lts future operational performance

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14-07-2021
Business

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G free ltd intends reducing the number of suppliers they use by 50% analyse how reducing the number of suppliers could imporve g-free lts future operational performance

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Munali Munali · Answer 1 · 2021-07-17T09:24:24+02:00

Answer:

It has to buy gluten free raw material to retains its customers because customers are willing to pay premium price for this feature. If there will be few supplier at G-Free Ltd will be able to focus on maintaining better and long term relationship with them.

Explanation:

G-Free Ltd has intended to reduce number of suppliers to improve its operational performance. It can grow its business and save cost from buying in bulk from a few suppliers. There will be less risk for procurement of raw material with gluten because there only few suppliers who will be providing raw material.