Procurement and Logistics Flashcards
What does Procurement mean?
Finding and buying things that a firm needs from suppliers outside of the firm.
What does Logistics mean?
Getting goods or services from one part of the supply chain to another.
What does having effective procurement and logistic systems do?
Improves the efficiency of a business - will have the supplies it needs at the right time.
Can reduce the overall costs of a business. If a business gets its supplies at the best price and it doesn’t waste money by being inefficient it will have lower overall costs.
What can a company that works closely with its suppliers be able to do?
(Benefit of managing a supply chain effectively)
Can make sure that processes are being carried out in ways that are most efficient and cost-effective.
What can a business that research potential suppliers be able to do?
Can make sure they are getting the best price and value for the goods they need.
Other than having a good relationship with suppliers and finding the best price and value, what benefit do they get from managing a supply chain effectively?
Reducing waste and unnecessary costs. This makes a business more streamlined and have faster production times.
