4.6 Working With Suppliers

Question 1

Define Logistics

Answer 1

The management of the transportation and storage of goods.

Question 2

Define Procurement

Answer 2

The management of purchasing within a business.

Question 3

Define Suppliers

Answer 3

Suppliers are parties who supply goods and/or services to a business.

Question 4

What is the role of procurement?

Answer 4

Identify goods and services to buy.
Choose suppliers.
Order goods and services.
Receive deliveries from suppliers.

Question 5

List the factors that can affect which goods and services the procurement department buy.

Answer 5

The time of year.
Changes in technology.
Changes in fashions and lifestyle.

Question 6

List the factors a business will take into account when choosing suppliers.

Answer 6

The quality of goods supplied.

The reputation of suppliers (ethical).

Question 7

What are the impacts on logistical and supply decisions in a business?

Answer 7

Time.
Reliability of supply.
Length of supply chain.
Costs.
Customer service.

Question 8

What is a supply chain?

Answer 8

The organisation of people and resources that brings goods and services to the consumer e.g. a potter selling handmade pottery to the public needs to buy clay from a supplier, who themselves have bought clay from where it is mined.