Green Fish, Reddish colored Fish
1 . What are the benefits and potential disadvantages to Red Seafood, Blue Seafood of having China as its single source of source? What do you recommend?
1 ) 1Advantages
•Reduction of product cost
Reddish Fish, Green Fish can easily have the benefit for unit cost reduction because of bulk purchases as they work with Liu-Sheng Trading as a single source of supply for all their purchases.
•Loyalty price cut
Red Seafood, Blue Seafood can have benefit of dedication discounts, Liu-Sheng would perceive Red Seafood, Blue Fish as company loyal client and give discount rates in the long run.
•Credit and great credit terms
For applying Liu-Sheng Trading as a only source of supply, Red Seafood, Blue Fish would stand an opportunity to building credit account and have even more favourable credit rating terms.
•Exceptional or perhaps distinguished treatment
Because of the established business relationship and commitment, Red Fish, Blue Fish would stand an opportunity known treatment than any other client e. g prioritisation of service, share reservation.
•Consistent quality standard
Through the use of one dealer Red Seafood, Blue Fish would have regular quality with their products.
Through the use of one particular supplier Reddish colored Fish, Green Fish may have customization with their products. Liu-Sheng would have their inputs for the improvement of products in serious thought and for execution.
Red fish will stand a chance to form a great alliance with Lui-Sheng over time. This connections would be of mutual profit to each.
In a long term Red Fish, Blue Seafood can buy shares from Lui-Sheng and conversely.
1 . 2Disadvantages
•Loss of product sales when Liu-Sheng runs out of stock
When will be certainly stock in Liu-Sheng there would be stock in Red Fish, Blue Fish and since there is no alternative supplier to them this would lead to loss of sales.
•Loss of sale when Liu-Sheng delivers incorrect supply or quantities When will be certainly...