13543096
Description
Mind Map by Daniel Newell, updated more than 1 year ago
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Created by Daniel Newell
over 6 years ago
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3.2 The role of procurement
- Key words
- Just in case production
- When you hold stock in case there is a
delay from the suppliers or an
unexpected rise in demand
- When you hold stock in case there is a
delay from the suppliers or an
unexpected rise in demand
- Logistics
- The movement of goods
services money and
information through a
business during production
- The movement of goods
services money and
information through a
business during production
- The supply Chain
- All the businesses and people that take
part in the production progress
- All the businesses and people that take
part in the production progress
- Procurement
- Selecting suppliers, establishing terms of
payment and negotiating the contract
- Selecting suppliers, establishing terms of
payment and negotiating the contract
- Purchasing economies of scale
- When the cost of units fall when large
offers are placed
- When the cost of units fall when large
offers are placed
- Lean production
- An approach to production that aims to minimise waste
- An approach to production that aims to minimise waste
- Just in case production
- JIT ( Just in time) Production
- when you only hold the materials you need
- Advantages
- Reduced warehouse costs
- Less space needed
- Waste reduction
- Smaller investments
- Can move between products easily
- Reduced warehouse costs
- Disadvantages
- Risk of running out of stock
- Lack of control on time frame
- More planning required
- Staff have to be paid even if it isn't producing
- Risk of running out of stock
- when you only hold the materials you need
- JIC (Just in case) Production
- When stocks are held for any
possible increase in production or
sales
- Advantages
- They can buy in bulk leading to lower
prices
- Fewer deliveries
- Can deal with sudden increase in
demand for the product
- They can buy in bulk leading to lower
prices
- Disadvantages
- Higher cost of storing materials
- Higher amounts of waste
- Higher cost of storing materials
- When stocks are held for any
possible increase in production or
sales
- Supply Chain
- The supply chain is all the
businesses, people and activities that
take part in the production process
- What to consider
when choosing
suppliers
- Cost
- Quality
- reliabilty
- speed
- range of products
- Cost
- Good suppliers
- Are quick and reliable so
the business can hold less
stock
- Good quality can help
uphold a businesses image
- Efficient suppliers reduce
the costs of a business
- Are quick and reliable so
the business can hold less
stock
- The supply chain is all the
businesses, people and activities that
take part in the production process
- Logistics and Procurement
- Logistics
- Is the movement of goods, services
and money throughout a business
- Is the movement of goods, services
and money throughout a business
- Procurement
- Is the purchasing of goods
- Is the purchasing of goods
- Logistics
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