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13543096
3.2 The role of procurement
Descrição
Year 10 Business Studies Mapa Mental sobre 3.2 The role of procurement, criado por Daniel Newell em 02-05-2018.
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business studies
year 10
Mapa Mental por
Daniel Newell
, atualizado more than 1 year ago
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Criado por
Daniel Newell
mais de 6 anos atrás
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Resumo de Recurso
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
Logistics
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
Procurement
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
Lean production
An approach to production that aims to minimise waste
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
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
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
Disadvantages
Higher cost of storing materials
Higher amounts of waste
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
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
Logistics and Procurement
Logistics
Is the movement of goods, services and money throughout a business
Procurement
Is the purchasing of goods
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