Interests and power of suppliers

Define suppliers and explain their interests and power, especially as related to lead firms. Discuss at least 2 reasons why globalization affected the supply chain. Respond to at least one of your classmates. Explain how your answers compare to your classmate’s and professionally support/defend your position. Please keep in mind, there is no right or wrong answer.

Respond to a classmate:

A supplier is a person or organization that provides goods or services to another organization. As stated in the reading suppliers are also known as vendors or contractors, which they are an essential market stakeholder of businesses. The suppliers have an interest in the company they supply doing well, and if the company does poorly, they could lose a customer. The supplier power can exert on businesses by raising prices, lowering quality, or reducing the availability of their products. One reason why globalization affect the supply chain because it requires that supply chain managers have detailed risk management plans in place and that they prepare when disaster strikes. Secondly, globalization necessitates that supply chains are highly efficient and well-run to stay competitive in a global market.

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