Paper 2 working with suppliers Flashcards
what is procurement
managing the buying part of the business
why is it vital procurement is done well (2)
to ensure costs keep low
business gets things it needs to run
what 4 roles does the procurement department have
identify goods and services to buy
choose a supplier
ordering goods
receive deliveries
what factors affect which goods to buy (3)
time of year
changes in technology
changes in fashion or lifestyle
how does the time of year effect procurement
weather can effect which stock to buy eg warm clothes
how does changes in technology effect buying
technology changes so quickly company doesnt want to buy to much of a product and be left with it when it is out of date
how does changes in fashion and lifestyle effect buying
fashion and lifestyle changes must keep up with trends eg veganism is poplar
what factors effect which suppliers a business chooses (2)
quality of goods, reputation of supplier
what effects the amount of stock ordered (3)
is there a discount for ordering more
does the business have enough room to store
if deliveries are at night will there be staff to receive them
what factors effect decisions on logistics
1time,
2reliability of supply,
3length of supply chain,
4cost,
5 customer service
how does time effect decisions on logistics
deliveries must take place when goods are needed or they will hold the job up
how does reliability of supply effect decisions on logisitcs
shops need things to sell they need a reliable service
how does length of supply chain effect decisions on logistcs
supply chain can be short or long and can effect production
how does cost effect decision on logistics
how to weigh up benefits - low cost can be better than reliable supplier but low cost may effect quality
