Business, 3.4 - Managing Supply Chains
Supply chain - (correct Answer) - The group of firms involved in all various
processes required to make a finished product or service, typically including
suppliers, manufacturers, distributors and retailers
Core workers - (correct Answer) - Essential, full-time, permanent employees
Peripheral workers - (correct Answer) - Not essential but are employed when more
staff is needed on temporary, part-time or zero hour contracts
Outsourcing - (correct Answer) - Contracting out activities to other businesses,
such as manufacturing, finance, recruitment, advertising and IT
The impacts of outsourcing - (correct Answer) - - Ability to meet demand
- Reduced costs
- Specialised knowledge
- No control over quality
Producing to order - (correct Answer) - - Customisable
- Saves on costs
- Unable to meet sudden demand
- Time consuming
Strategic suppliers vs non-strategic suppliers - (correct Answer) - - Strategic
suppliers are those that supply essential goods and services
- Non-strategic suppliers provide low-value supplies, such as office stationery
Factors when choosing a supplier - (correct Answer) - - Price: The cheaper the
supplier, the more value added to the final product
- Payment terms: New companies will often have to pay up front rather than with
credit
- Quality: Poor quality would be associated with the business
- Capacity: The ability to meet peaks in demand and provide a bulk-buying discount
- Reliability: A supplier letting a firm down would result in inability to serve
customers
- Flexibility: Responding quickly to changes in the company's requirements
Methods of creating a strategic working relationship - (correct Answer) - - Linked
networks: Inventory control, electronic data interchange
- JIT: Less waste means more finance
- Shared costs: Sharing specialist equipment and storage space
- Innovation: Improving the manufacturing process and developing products together
to save
Improving supply chains - (correct Answer) - - Only buying needed supplies
- Prioritising strategic suppliers
- Limiting the number of sources they buy from
- Having an alternative supply source
Matching supply and high demand - (correct Answer) - - Peripheral workers
- Outsourcing out work
- Temporarily increasing capacity utilisation and getting more raw materials for
alternative suppliers
Supply chain - (correct Answer) - The group of firms involved in all various
processes required to make a finished product or service, typically including
suppliers, manufacturers, distributors and retailers
Core workers - (correct Answer) - Essential, full-time, permanent employees
Peripheral workers - (correct Answer) - Not essential but are employed when more
staff is needed on temporary, part-time or zero hour contracts
Outsourcing - (correct Answer) - Contracting out activities to other businesses,
such as manufacturing, finance, recruitment, advertising and IT
The impacts of outsourcing - (correct Answer) - - Ability to meet demand
- Reduced costs
- Specialised knowledge
- No control over quality
Producing to order - (correct Answer) - - Customisable
- Saves on costs
- Unable to meet sudden demand
- Time consuming
Strategic suppliers vs non-strategic suppliers - (correct Answer) - - Strategic
suppliers are those that supply essential goods and services
- Non-strategic suppliers provide low-value supplies, such as office stationery
Factors when choosing a supplier - (correct Answer) - - Price: The cheaper the
supplier, the more value added to the final product
- Payment terms: New companies will often have to pay up front rather than with
credit
- Quality: Poor quality would be associated with the business
- Capacity: The ability to meet peaks in demand and provide a bulk-buying discount
- Reliability: A supplier letting a firm down would result in inability to serve
customers
- Flexibility: Responding quickly to changes in the company's requirements
Methods of creating a strategic working relationship - (correct Answer) - - Linked
networks: Inventory control, electronic data interchange
- JIT: Less waste means more finance
- Shared costs: Sharing specialist equipment and storage space
- Innovation: Improving the manufacturing process and developing products together
to save
Improving supply chains - (correct Answer) - - Only buying needed supplies
- Prioritising strategic suppliers
- Limiting the number of sources they buy from
- Having an alternative supply source
Matching supply and high demand - (correct Answer) - - Peripheral workers
- Outsourcing out work
- Temporarily increasing capacity utilisation and getting more raw materials for
alternative suppliers
