2.3.2 Working With Suppliers Flashcards
Procurement
The process of buying and selling stock
What makes a good supplier
Flexibility with orders
Fair trade credit terms
Reliable
Large discounts for larger orders
Consistent quality goods
Fair prices
Short lead times (available quickly)
Why are good suppliers important
Late deliveries can hold up customers
If not reliable, might not get delivery
Suppliers can influence branding of business
Flexibilithy can help businesses meet customers requirements
Logistics
Logistics is concerned with the efficient storage and transportation of goods. Logistics aims to ensure that the right product will be ordered and delivered on time.
Types of stock
Raw materials needed to make products
Finished goods - goods made and ready to sell
How does logistics impact a business
High customer satisfaction if the right quantity of the right product can be delivered at the right time to the right place.
Reduced costs if can be done efficiently
What is on a bar gate stock graph
Max stock level
Stock level over time
Buffer stock level (minimun stock level
Reorder level
Delivery time
