Unit 3.2 - The role of procurement

Question 1

Define supply chain

Answer 1

The group of firms involved in taking a good or service from the beginning (provider of raw materials) to the end (consumer)

Question 2

Factors that influence which supplier to use (3)

Answer 2

Price - how much the supplier is selling the product for
Quality
Reliability

Question 3

Define procurement

Answer 3

Finding and buying things from suppliers, includes negotiations etc

Question 4

Define logistics

Answer 4

Getting the goods or services from one part of the supply chain to another

Question 5

Effective procurement and logistics help a business (5)

Answer 5

Improves efficiency
Correct supplies at the correct time
Allows production to continue
Decrease costs - best price/increased efficiency
Profit maximise or increased sales from reduced price

Question 6

Benefits of effective supply chain management (4)

Answer 6

Good relationship with suppliers
Find the best price and value
Reduce waste
Reduce unnecessary costs