Supply Chains Flashcards
What is a supply chain?
the sequence of processes involved in converting raw materials into a final product and then distributing it to customers
List four types of businesses that are usually part of a supply chain?
•clothing
•restaurants/food
•furniture
•shoes
What does procurement mean?
the process of obtaining goods and services a business needs from suppliers. It includes selecting suppliers, negotiating contracts, and ensuring quality and cost-effectiveness.
Explain how effective procurement and logistics can improve the efficiency of a business.
Effective procurement and logistics improve business efficiency by reducing costs, ensuring reliable supply chains, managing inventory effectively, speeding up production and delivery, and providing a competitive advantage.
Explain how effective procurement and logistics can affect the unit cost of products
Effective procurement and logistics reduce unit costs by lowering material, storage, transportation, and production expenses, making operations more efficient and profitable.
Explain why a good relationship with suppliers is a benefit of managing a supply chain effectively
A good relationship with suppliers ensures reliable deliveries, better pricing, improved product quality, and greater flexibility. It builds trust and collaboration, leading to priority service, faster problem resolution, and potential innovations that enhance efficiency and competitiveness.
Why is it important that a firm reduces waste and unnecessary costs in its supply chain?
Reducing waste and unnecessary costs in the supply chain improves profitability, efficiency, and competitiveness. It ensures better resource management, lowers environmental impact, minimizes delays, and allows investment in growth, innovation, and customer service.
