Supply Chain Issues Flashcards
What is Outsourcing?
When a business wants to focus on its strengths it may ‘outsource’ an activity rather than doing the work itself.
Example.
A retail business may outsource legal, IT or accounting work to another company.
What is distribution?
How a good or service is taken from a producer to a consumer.
The distribution Process ensures the product reaches its final destination from the producer to the customer.
Example.
A phone made in china may be sold to Noel Leeming who then sells to customers or it could be sold to a wholesaler.
What is Procurement?
The process of buying goods and services for the business.
Example.
An orange juice producer sourcing oranges.
Why is procurement important to the business?
The ability to buy the right product or service at the right time for the right price is critical to a business because being unable to do so will make the business noncompetitive in the market.
What is a supply chain?
A supply chain is the entire process of producing and delivering a product, from sourcing raw materials to manufacturing, distribution, and finally delivering the product to consumers.
Why is a supply chain important?
A supply chain is important because it ensures that products are efficiently made and delivered to customers. A well-functioning supply chain lowers costs, improves product quality, and enhances customer satisfaction.
What happens if a business has a poor supply chain?
A poor supply chain can result in delays, increased costs, poor product quality, lost sales, and damaged reputation. This negatively impacts a business’s profitability and customer satisfaction.
How does a good supply chain benefit a business?
A good supply chain ensures timely delivery of products, reduces costs, improves efficiency, and helps a business stay competitive in the market. It also increases customer satisfaction.
