2.3.4
Effective Supply Chains
Effective Supply Chain Management
Effective Supply Chain Management
Working with suppliers to make sure that key processes are running efficiently and cost effectively is important for a business.
Long-term relations
Long-term relations
- Building long-term relationships with suppliers can help to lower costs even more in the future.
- BMW Mini use Continental tyres when they build new Mini cars. These tyres are transported between Continental and BMW car production plants using logistics companies like Plant Wackersdorf.
JIT production
JIT production
- A JIT (just in time) method of distribution can be used by the businesses to make sure the supply chain is efficient and reliable.
Supplies at best price and quality
Supplies at best price and quality
- Having a well organised supply chain has important repercussions for the price and the quality of a final product.
- Price and quality are the two main ways that businesses compete with each other.
Reduce waste
Reduce waste
- Cutting any waste and unnecessary costs to create a streamlined process.
- This can help to reduce costs and as a result, increase profits.
Choosing Suppliers
Choosing Suppliers
Lots of factors affect a business' choice of suppliers:
Cost
Cost
- Firms usually decide which suppliers they want to work with based on the prices that they are offered.
- A firm like Aldi or Primark, which competes based on charging lower prices to consumers, will put lower average costs for supplies as their top priority.
Quality
Quality
- Quality is another key area where firms compete.
- This is more important for firms like Waitrose, who pride themselves on delivering high quality products.
Reliability
Reliability
- If a supplier is unreliable it can lead to regular breakdowns in the supply chain.
- Products need to be delivered on time (for example Continental’s tyre deliveries to BMW Mini) and they need to come from a reliable supplier and through a reliable distributor.
Ethical and environmental considerations
Ethical and environmental considerations
- There can often be a trade-off between costs and whether a product or service is made ethically and in an environmentally friendly way.
- Some firms will place this as a high priority. Firms that advertise themselves as environmentally friendly and ethical, like the Body Shop, will find this is even more important.
1Enterprise & Entrepreneurship
1.1The Dynamic Nature of Businesses
1.2Spotting a Business Opportunity
1.3Putting a Business Idea into Practice
1.3.1Business Aims
1.3.2Business Objectives
1.3.3Business Revenues & Costs
1.3.4Costs - Calculations
1.3.5Revenue - Calculations
1.3.6Business Profits & Break-Even Analysis
1.3.7Profits & Losses - Calculations
1.3.8Interest - Calculations
1.3.9Cash & Cash Flow
1.3.10Cash & Cash Flow 2
1.3.11Cash Flow - Calculations
1.3.12Sources of Business Finance
1.3.13End of Topic Test - Business in Practice
1.3.14Grade 9 - Business in Practice
1.3.15Exam-Style Questions - Business in Practice
1.4Making the Business Effective
2Building a Business
2.1Growing the Business
2.2Making Marketing Decisions
2.2.1Product
2.2.2Product Life Cycle
2.2.3Price
2.2.4Pricing Methods
2.2.5End of Topic Test - Product & Price
2.2.6Grade 9 - Product & Price
2.2.7Promotion & Advertising
2.2.8PR & Sales Promotions
2.2.9Sponsorship & Product Placement
2.2.10Promotional Mix
2.2.11End of Topic Test - Promotion
2.2.12Application Questions - Promotion
2.2.13Exam-Style Questions - Promotional Mix
2.2.14Place & Wholesalers
2.2.15Direct to Consumer
2.2.16E-commerce & M-commerce
2.3Making Operational Decisions
2.3.1Job Production
2.3.2Batch & Flow Production
2.3.3Working with Suppliers
2.3.4Effective Supply Chains
2.3.5Just In Time & Just In Case
2.3.6Managing Quality
2.3.7Total Quality Management
2.3.8The Sales Process
2.3.9End of Topic Test - Operational Decisions
2.3.10Grade 9 - Operational Decisions
2.3.11Exam-Style Questions - Managing Stock
2.4Making Financial Decisions
2.5Making Human Resource Decisions
Jump to other topics
1Enterprise & Entrepreneurship
1.1The Dynamic Nature of Businesses
1.2Spotting a Business Opportunity
1.3Putting a Business Idea into Practice
1.3.1Business Aims
1.3.2Business Objectives
1.3.3Business Revenues & Costs
1.3.4Costs - Calculations
1.3.5Revenue - Calculations
1.3.6Business Profits & Break-Even Analysis
1.3.7Profits & Losses - Calculations
1.3.8Interest - Calculations
1.3.9Cash & Cash Flow
1.3.10Cash & Cash Flow 2
1.3.11Cash Flow - Calculations
1.3.12Sources of Business Finance
1.3.13End of Topic Test - Business in Practice
1.3.14Grade 9 - Business in Practice
1.3.15Exam-Style Questions - Business in Practice
1.4Making the Business Effective
2Building a Business
2.1Growing the Business
2.2Making Marketing Decisions
2.2.1Product
2.2.2Product Life Cycle
2.2.3Price
2.2.4Pricing Methods
2.2.5End of Topic Test - Product & Price
2.2.6Grade 9 - Product & Price
2.2.7Promotion & Advertising
2.2.8PR & Sales Promotions
2.2.9Sponsorship & Product Placement
2.2.10Promotional Mix
2.2.11End of Topic Test - Promotion
2.2.12Application Questions - Promotion
2.2.13Exam-Style Questions - Promotional Mix
2.2.14Place & Wholesalers
2.2.15Direct to Consumer
2.2.16E-commerce & M-commerce
2.3Making Operational Decisions
2.3.1Job Production
2.3.2Batch & Flow Production
2.3.3Working with Suppliers
2.3.4Effective Supply Chains
2.3.5Just In Time & Just In Case
2.3.6Managing Quality
2.3.7Total Quality Management
2.3.8The Sales Process
2.3.9End of Topic Test - Operational Decisions
2.3.10Grade 9 - Operational Decisions
2.3.11Exam-Style Questions - Managing Stock
2.4Making Financial Decisions
2.5Making Human Resource Decisions
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