Unit 4.6 Working with suppliers

Question 1

What is procurement?

Answer 1

The management of purchasing within a business

Question 2

What is logistics?

Answer 2

The management of the transportation and storage of goods

Question 3

What is the role of procurement?

Answer 3

1) Identifying goods and services to buy
2) Choosing suppliers
3) Ordering goods and services
4) Receiving deliveries from suppliers

Question 4

What factors affect which goods and services a business needs to buy?

Answer 4

1) The time of year
2) Changes in technology
3) Changes in fashion and lifestyle

Question 5

What factors can affect which how a business chooses its suppliers?

Answer 5

1) The quality of the goods supplied
2) The reputation of the suppliers
3) Costs of supplies/stock
4) Minimum order size
5) Customer service and reliability
6) Delivery times

Question 6

What are the decisions on logistics and supply affected by?

Answer 6

1) Time
2) Reliability of supply
3) Length of the supply chain
4) Costs
5) Customer service