Friday, 6 January 2012

Large businesses affecting suppliers

A large business will affect it's suppliers by having a good reputation of making payments in a short period of time, staying in the trade credit time period. Suppliers as a result of this would make these deliveries a high priority and provide a fast delivery. Economies of scale may occur as and large businesses will get a discounted price on their supplies or get more for their money which can cause the suppliers to lose out on some money, or dis-economies of scale may and the suppliers may increase the unit price of the large businesses supplies due to the businesses increased wealth and success, causing the opposite affect on the large business.   

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