Working with suppliers Flashcards
What does ‘Procurement’ mean?
The management of purchasing within a business
What are the 4 stages of procurement?
- identifying goods and services to buy
- choosing suppliers
- ordering goods and services
- Receiving deliveries from suppliers
What decisions are made when identifying goods and services to buy?
- which season the business is buying for
- changes the industry is going through
affects the product the business is selling
What decisions are made when choosing a supplier?
- If the supplier is reliable or not
- The reputation of supplier
- The quality or services the supplier will
supply the business is good or not
What decisions are made when ordering goods and services?
- completing an order form stating what the
business wants and sending it to supplier
What decision is made when the business receives the delivery from supplier?
Business will have to arrange some workers that can receive the goods and store them
What does it mean by logistical decisions?
Decisions that involve transportation of goods to customers
What are the 5 issues that need to be considered, connected to logistical decisions and supply decisions?
- Time
- Reliability
- Length of the supply chain
- Costs
- Customer service
Explain why time needs to be considered in logistical decisions and supply decision ?
Because the supplier must be able to deliver goods on time
What are the potential problems that suppliers could face due to time ?
- The supplier may be short of materials which can slow down production
- The business could lose sales and revenue
Explain why Reliability needs to be considered in logistical and supply decisions ?
Because the supplier should be able to supply the right quality and quantity of goods.
What are the potential problems that suppliers could face due to their reliability ?
If the supplier is short of materials or the quality is not good, there maybe a delay in production or may have to stop resulting in a loss of sales and revenue
