Find suppliers for your business
Overview
This standard is for entrepreneurs who need to find suppliers for their business. Buying the equipment, tools and materials that you need at the right price, time and quality affects the profitability of your business. This standard also addresses utilities (such as gas, water and electricity) and relevant technologies required for your business. If you use supplies on a regular basis then stock control, including when and where you buy materials from, will be important. Finding suppliers for your business involves developing a clear understanding of what is required to meet your business plan, making purchasing decisions, and comparing different suppliers' prices, best value, quality and reliability.
You might do this if you need to:
set up a new business or social enterprise;
find a new supplier and agree terms for a new piece of equipment when expanding your business or social enterprise;
change suppliers that you use regularly to improve profitability of the products or services offered by your business or social enterprise.
Performance criteria
You must be able to:
- identify the equipment, tools and materials you need to meet your business aims
- identify any computer hardware and software required for your enterprise
- create a list that details the equipment, tools and materials you need and when
- research different suppliers of equipment, tools and materials
- compare different options between suppliers
- calculate the costs and benefits of equipment, tools and materials from different suppliers
- set the targets and limits for buying supplies
- prioritise and balance options against your needs
- assess the effect agreements will have on sales margins and profitability
- agree the costs and terms for buying the supplies
- keep records of agreements with suppliers
- check what the laws and regulations are for supplies for your business
- arrange for the equipment, tools and materials to be supplied
- identify any regular supplies and incorporate these in your financial planning
- use systems for recording your supplies and stock control
- comply with relevant laws and regulations in relation to equipment, tools and materials
Knowledge and Understanding
You need to know and understand:
Business focus
1. your business aims in terms of products, market share, price profitability, cash flow, projected turnover, capital and assets
Supplies
2. the equipment, tools and materials required for your business
3. the relevant information about the equipment, tools and materials, such as accounting information, customers, suppliers, market information, order book and sales forecasts
4. the furniture, fixtures and fittings required for your business
5. the office supplies, including computers, stationery, storage and filing systems
6. the utilities, such as gas, water and electricity
7. the resources to use when buying supplies
8. how to ensure best value for money, quality and reliability when buying supplies
9. how to work out the full costs of supplies, for example, price of supplies, stock handling and storage, late delivery and insurance
10. the cost-benefit analysis of different equipment, tools and materials
11. how to compare the results of the analysis with your expected profit margins
12. the variety of options for getting equipment, such as choosing between new, second-hand or hire purchase
13. the information you need to know about suppliers, such as their prices, hidden costs, quality, reliability, minimum order quantities, delivery time and payment terms
14. the full costs of supplies, price of supplies, stock handling and storage, late deliveries and insurance
15. how to reduce expenditure on machinery and equipment in advance
16. how to make good use of working capital
Stock control
17. how to manage and control your equipment, tools and materials
18. how to work out and control the stock levels
19. the shelf life of your supplies
20. how to store your equipment, tools and materials
21. how to reduce waste and get rid of waste products in an environmentally friendly way
22. how to keep records of your stock
23. how you to store tools and materials and maintain equipment safely
Laws and Regulations
24. the relevant laws and regulations in relation to equipment, tools and materials