Stage 8 Performance Review

In the final stage of the buying process, the buyer periodically reviews the performance of the chosen supplier(s). Three methods are commonly used. The buyer may contact the end users and ask for their evaluations. Or the buyer may rate the supplier on several criteria using a weighted score method. Or the buyer might aggregate the cost of poor supplier performance to come up with adjusted costs of purchase, including price. The performance review may lead the buyer to continue, modify, or end the relationship with the supplier. Therefore, to stay in the running for future purchases, suppliers should monitor their performance carefully using the same criteria applied by the product's buyers and end users. Smart suppliers also analyze the rivals who compete for the same business, as discussed in the next chapter.

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Borrowing Basics

Borrowing Basics

Some small business persons cannot understand why a lending institution refused to lend them money. Others have no trouble getting funds, but they are surprised to find strings attached to their loans.

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