Importance of an effective supply chain
- Created by: 14a.williamson
- Created on: 02-02-19 21:07
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- Importance of an effective supply chain
- Stock control
- Computerised stock controll
- If a business sells high volumes then they need to ensure they are refilling their stock
- JIT storage
- Reduces the need for much storage space, which can be expensive
- Stocked at busy periods such as Christmas
- They can cope with demands from customers, and have good customer satisfaction
- JIC storage
- Businesses can cope with the increase in demand, and be able to meet it
- Stock rotation
- This reduces waste, as allows customers to get the freshest goods
- Computerised stock controll
- Procurement
- Delivery time
- If it takes too long, the customer may not be able to buy that product, so go elsewhere
- Reliability of supplier
- If the supplier doesn’t deliver on time, the customer may not be able to buy that product
- Cost
- If the products cost too much, prices will be too high in the shop
- Reputation of supplie
- If the supplier has a bad reputation, then the customers will have a negative experience
- Payment terms
- If they cannot meet the payment terms, then the supplier will stop providing to them
- Sustainability and fair trade
- Custimers may look for this when buying their products
- Delivery time
- Logistics
- Transport raw materials
- Raw materials need to be at the factories at the right time, so manufacturingcan take place
- Transport finished goods
- Products need to be at the right place at the right time, to ensure they are available for customers
- Delivers the right products to the right place
- If it takes too long, the customer may not be able to buy that product, so go elsewhere
- Transport raw materials
- Stock control
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