Suppliers And Responsible Sourcing

Question 1

What factors influence the choice of supplier?

Answer 1

• Price
• Location and transport costs
• Lead time
• Product quality
• Reliability
• Reputation

Question 2

What factors should businesses consider when choosing a supplier?

Answer 2

• Does the supplier offer discounts?
• Does the supplier offer trade credit?
• Are there any additional charges?
• Are they able to deliver the quantity needed?
• Are they good enough quality?

Question 3

What is outsourcing?

Answer 3

Outsourcing occurs when an organisation uses a separate business or businesses to complete part of its work - for example, a business may outsource cleaning its premises.

Question 4

What are the benefits of outsourcing?

Answer 4

• Enables the business to make use of specialist skills and services
• Can increase the capacity of the business by getting some aspects of its provision provided by others

Question 5

What are the disadvantages of outsourcing?

Answer 5

• A business will be affected by the work undertaken by other businesses in terms of the costs and quality of their suppliers
• Held accountable for suppliers
• Pay enough for the products for the supplier to make a profit, more expensive.

Question 6

What methods can be used to match supply to demand?

Answer 6

• flexible workforce
• queuing systems or waiting lists
• outsourcing production
• increasing prices
• accepting orders to produce for others if demand is low
• producing to order

Question 7

Definition of part-time staff?

Answer 7

Part-time staff work less than a full working week, for example, 20 hours a week.

Question 8

Definition of temporary staff?

Answer 8

Temporary staff work for a limited period of time, for example, for the summer only.

Question 9

What decisions have to be made when making decisions about supply chain?

Answer 9

• What to produce yourself and what to buy from others
• Which other businesses to work with
• Supplier strategy
• Terms and conditions
• Assurances from supplier
• How much direct involvement with suppliers
• How centralised purchasing should be

Question 10

What will effective management of the supply chain ensure?

Answer 10

• Right supplies arrive on time
• Fair price is paid for the items
• Products are produced in a way which is acceptable to the business