Topic 3 Flashcards
What is a supply chain?
The network between a company and its suppliers to produce and distribute a specific product.
List four types of business that are usually part of a supply chain.
- Manufacturers
- Suppliers
- Distributors
- Retailers
What does ‘procurement’ mean?
The process of acquiring goods and services.
Explain how effective procurement and logistics can improve the efficiency of a business.
By reducing delays, lowering costs, and optimizing resource use.
Explain how effective procurement and logistics can affect the unit cost of products.
Lowering unit costs through bulk purchasing and efficient transportation.
Explain why a good relationship with suppliers is a benefit of managing a supply chain effectively.
It leads to better pricing, reliability, and communication.
Why is it important that a firm reduces waste and unnecessary costs in its supply chain?
To enhance profitability and competitive advantage.
What is meant by ‘job production’?
A production method where products are made individually or in small batches.
Give an example of a product made by job production.
Custom furniture.
What is meant by ‘flow production’?
A continuous production process where items are produced in a sequence.
Give an example of a product made by flow production.
Automobiles.
Give one advantage of flow production over job production.
Higher efficiency and lower average costs.
What does ‘lean production’ mean?
A methodology that focuses on minimizing waste within manufacturing systems.
What is meant by a just-in-time (JIT) production method?
A strategy where materials are received only as they are needed in the production process.
Explain why a business may prefer to use a just-in-case (JIC) approach rather than JIT.
To avoid stockouts and ensure product availability.
Give three reasons why it’s good for a business to ensure customers get good quality products.
- Increases customer satisfaction
- Enhances brand reputation
- Reduces returns and complaints
Give two costs associated with maintaining quality standards.
- Inspection and testing costs
- Training costs for employees
Why is it advantageous for a business to spot quality problems in the production process?
To minimize defects and reduce costs related to returns.
What does TQM stand for?
Total Quality Management.
What does TQM involve?
An organization-wide approach to continuous improvement and customer satisfaction.
Give one advantage of TQM.
Improved operational efficiency.
Give one reason why a growing business may find it difficult to maintain high quality standards.
Increased complexity in operations.
Briefly describe the steps in a sales process.
Prospecting, preparation, approach, presentation, handling objections, closing, and follow-up.
Explain why having good product knowledge allows sales staff to provide good customer service.
It enables them to answer questions and address customer needs effectively.
Give one way in which sales staff could make sure they engage positively with their customers.
By actively listening to customer concerns.
Explain why providing good customer service is important for customer loyalty.
It builds trust and encourages repeat business.
Explain how poor customer service could lead to a big fall in a firm’s revenue.
It can drive customers to competitors.
Give three ways in which a business can make sure their website provides good customer service.
- Easy navigation
- Quick response times
- Clear contact information
Explain how the growth in social media has allowed businesses to develop their customer service.
By enabling direct communication and feedback from customers.
