Working with suppliers

Question 1

4 main roles of the procurement department

Answer 1

1. Identifying what goods to buy
2. Choice of supplier
3. Ordering the goods
4. Receiving deliveries from suppliers

Question 2

Example of time of year that can affect choice of products and services

Answer 2

Christmas, Easter eggs

Question 3

Example of changes in technology that can affect choice of products and services

Answer 3

New iPhones, ps5

Question 4

Example of changes in fashion and lifestyle that can affect choice of products and services

Answer 4

Clothes and trends such as fidget spinner

Question 5

Reliability and quality of supplier

Answer 5

If the deliveries are on time and the quality is up to standard
It can’t help reduce stock holding costs
can add value to a product and allow a premium price to be charged

Question 6

Speed and flexibility (lead time)

Answer 6

Lead time is the time taken from placing an order to recovering the delivery
If lead time is extend then the business may run out of stock leading to production stoppage or customer dissatisfaction

Question 7

Length of supply chain

Answer 7

The supply chai. I’d the network between a company and al its suppliers the longer the supply chain the more difficult it is to control

Question 8

Cost

Answer 8

Lower cost can lead to lower selling price which creates a USP
However if quality is poor it may have a negative impact on the business

Question 9

Customer service

Answer 9

Quality of raw materials
Flexibility of to match supply to demand
Speed of delivery