3.2 The role of procurement

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Year 10 Business Studies Mapa Mental sobre 3.2 The role of procurement, criado por Daniel Newell em 02-05-2018.
Daniel Newell
Mapa Mental por Daniel Newell, atualizado more than 1 year ago
Daniel Newell
Criado por Daniel Newell mais de 6 anos atrás
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Resumo de Recurso

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

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