Working with suppliers (2) Flashcards
What is procurement?
The process of obtaining the right supplies from the right supplier
What is logistics?
The organising of the processes involved in the supply chain (transport of raw materials and final products)
What is stock management?
the task of ordering, storing, tracking and controlling a business stock
What is JUST IN TIME?
A business holds no stock and relies upon deliveries of raw materials and components to arrive exactly when they are needed
Advantages of JUST IN TIME
+ less waste of capital/ food
+ save costs
+ increases efficiency
Disadvantages of JUST IN TIME
- might not have the stock customers want
- unconvient
- needs good trust with suppliers
What is JUST IN CASE?
stock will be automatically re ordered when it reaches a certain level, businesses always keep a buffer stock
Advantages of JUST IN CASE
+ more reliable
+ automatically re ordered
+ easily meet customer needs
Disadvantages of JUST IN CASE
- more waste
- holding lots of stock can be costly
What is QUALITY?
how well a product has been made, the purity of its ingredints or raw materials and how long it will last
QUALITY BEING FIT FOR CUSTOMER PURPOSE
What is QUALITY ASSURANCE?
checks products at all stages of the production process ensure it doesn’t produce faulty or below standards goods
What is QUALITY CONTROL?
the process of checking the standard of a products quality at the end of production process
- prevents faulty goods going to customers but doesnt stop faulty goods being made
