Management Movie Review

Transportation Economics
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Transportation Economics
One of the techniques that buyers will use to qualify a supplier before doing business with them is to conduct an informal appraisal. This involves assessing the profitability of the company over a specified period. Furthermore, buyers try to ascertain the ratio of buyers’ asses to debts. This form of assessment plays a significant role in determining whether the supplier will be in a position to sign a long-term contract and honour it until the end.
Buyers assess the production capacity of the supplier. This involves looking at the maximum productive capacity and whether the supply will be in a position to meet the buyers need (Prentice & Prokop, 2016). Also, it evaluates whether the role can be expanded in case of the future demand increases as the business grows. The strategy is significant in determining the ability of the suppliers to meet the contractual arrangements with the buyer. The facilities that the suppliers have are important in determining their ability to meet strict timelines.
Assessment of human resources is another technique used to qualify a supplier. This involves assessing the qualification and experience of the subordinates (Button, 2010). These are people who are included in the production process. The technique is important in determining whether they will able to meet the required standards. Furthermore, it assesses the ability of the employees to use information technology during service delivery.

This is important at the time when internet and social media platforms have become critical platforms for conducting the transactions.
References
Button, K. (2010). Transport Economics. Cheltenham: Edward Elgar Pub.
Prentice, B. E., & Prokop, D. (2016). Concepts of transportation economics. New Jersey: World Scientific.