3.2
- Created by: Hazzerr
- Created on: 17-03-21 07:25
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- Topic 3.2
- Suppliers(work involved)
- Logistics
- When working with supplies, it is common to have to work out the logistics yourself.
- The movement of goods, products, or other business related items.
- Dependencies
- Reliability
- Costs
- Quality
- Range
- Speed/Flexibilty
- Reputation
- Payment/contract terms
- Importance
- The reliability of suppliers can make or break a business.
- Need good quality and deliveries on time
- The reliability of suppliers can make or break a business.
- Supply chain
- The processes involved in making one product.
- With increasing globalisation, supply chains are more complex
- Logistics
- Stock/Inventory.
- The holding of raw materials or finished products in a warehouse.
- Holding too much inventory can cost the business
- Holding inventory for too long can increase risk of damage or theft.
- JUST IN TIME
- Stock comes in as and when needed
- Pros
- Less risk of damage/theft as stock is not held for as long
- Can boost relationships with suppliers
- More flexible
- Cons
- More deliveries -> environmental impact
- More reliability on suppliers
- Cant cope with fluctuating demand
- Pros
- Stock comes in as and when needed
- Just in case
- When goods are stockpiled
- Pros
- Can cope with an increase in demand
- Less frequent deliveries.
- Bulk buying and the benefits can be achieved.
- Cons
- Items can go out of date or be damaged or stolen.
- Need to pay for a big warehouse,
- Increased costs.
- Pros
- When goods are stockpiled
- Procurement
- The act of acquiring or purchasing something to do with a business, whether it is stationary or machinery.
- Suppliers(work involved)
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