The Role Of Procurement

Question 1

Procurement

Answer 1

The process of selecting and negotiating with a supplier. There will be discussions of payment terms and contract details, such as how much stock needs to be delivered when.

Question 2

Logistics

Answer 2

It is the process of getting goods and services to a different stage of the supply chain.

Question 3

Supply chain

Answer 3

It’s the network of all the individuals, organizations, resources, activities and technology involved in the creation and sale of a product.

Question 4

Advantages of procurement and logistics

Answer 4

1) it is to ensure a business has enough raw materials and components
2) to ensure they arrive at the right place at the right time
3) to minimise waste, which in turn reduces costs
4) to keep production flowing, which in turn boosts sales
5) this will lead to increased efficiency, which will cause a reduction in costs, which gives the business the option to reduce their prices
6) the reduction in prices will in turn lead to increased demand, and so sales will increase.

Question 5

Sole supplier agreement

Answer 5

When a business only makes a deal with one supplier