2.3.2 Working with Suppliers Flashcards
What is Just In Time (JIT)
Receiving stock from suppliers just before it is needed.
What is an advantage of JIT?
One advantage is cash isn’t tied up in stock.
What is a disadv of JIT?
A disadvantage is unforeseen circumstances can cause late deliveries.
What is Buffer Stock?
Having a set number of stock spare in case demand increases.
What is an adv of Buffer Stock?
An adv is a surge in demand can be met
What is a disadv of Buffer Stock?
A disadv is it has higher storage costs
What is procurement?
The process of storing and buying stock.
What is an adv of procurement?
An adv is a surge in demand can be met
What is a disadv of procurement?
A disadv is stock can perish
Why do businesses need good suppliers?
They can rely on good prices and consistent delivery times
Define logistics
The people concerned with the efficient storage and transportation of goods. They aim to ensure the right products will be ordered and delivered on time
What makes a good supplier?
Flexibility with deliveries
Fair trade credit terms
Reliable
Large discounts for large orders
