Effective Supply Chains

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

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

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

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

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

Lots of factors affect a business' choice of suppliers:

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 is another key area where firms compete.
This is more important for firms like Waitrose, who pride themselves on delivering high quality products.

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

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.

1Investigating Small Business

1.1Enterprise & Entrepreneurship

1.1.1The Dynamic Nature of Businesses

1.1.2Risk & Reward

1.1.3The Role of Business Enterprise

1.1.4The Role of Business Enterprise 2

1.1.5The Role of the Entrepreneur

1.1.6End of Topic Test - Dynamic Nature of Business

1.1.7Grade 9 - Dynamic Nature of Business

1.2Spotting a Business Opportunity

1.2.1Customer Needs

1.2.2Market Research

1.2.3Market Segmentation

1.2.4The Competitive Environment

1.2.5Primary & Secondary Market Research

1.2.6End of Topic Test - Business Opportunities

1.2.7Application Questions - Business Opportunities

1.2.8Exam-Style Questions - Market Segmentation

1.2.9Diagnostic Misconceptions - Competition

1.3Putting a Business Idea into Practice

1.4Making the Business Effective

1.4.1The Options for Start-Up & Small Businesses

1.4.2Limited Liability

1.4.3Franchising & Not-For-Profits

1.4.4Business Location

1.4.5The Marketing Mix

1.4.6Business Plans

1.4.7End of Topic Test - Effective Business

1.4.8Application Questions - Effective Business

1.4.9Exam-Style Questions - Business Plans

1.5Business Stakeholders

1.5.1Business Stakeholders

1.5.2Technology & Business

1.5.3Legislation & Business

1.5.4Legislation & Business 2

1.5.5The Economy & Business

1.5.6External Influences

1.5.7End of Topic Test - Business Stakeholders

1.5.8Grade 9 - Business Stakeholders

1.5.9Diagnostic Misconceptions - Recessions

2Building a Business

2.1Growing the Business

2.1.1Business Growth

2.1.2Finance

2.1.3Changes in Business Aims & Globalisation

2.1.4Ethics & Business

2.1.5The Environment & Business

2.1.6End of Topic Test - Growing a Business

2.1.7Application Questions - Growing a Business

2.1.8Exam-Style Questions - Business Growth

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

2.2.17Diagnostic Misconceptions - Decreasing Price

2.2.18Diagnostic Misconceptions - Advertise vs Promote

2.2.19Diagnostic Misconceptions - Social Media

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

2.3.12Diagnostic Misconceptions - JIT vs JIC

2.4Making Financial Decisions

2.4.1Gross Profit & Net Profit - Definitions

2.4.2Gross Profit - Calculations

2.4.3Net Profit - Calculations

2.4.4Rate of Return

2.4.5Rate of Return - Calculations

2.4.6Research & Financial Data

2.4.7Marketing Data

2.4.8Percentage Change - Calculations

2.5Making Human Resource Decisions

2.5.1Organisational Structures

2.5.2Organisational Structures 2

2.5.3Recruitment

2.5.4Effective Recruitment

2.5.5Training a Workforce

2.5.6Motivating a Workforce

2.5.7End of Topic Tests - Human Resources

2.5.8Application Questions - Human Resources

2.5.9Exam-Style Questions - Human Resources

2.5.10Diagnostic Misconceptions - Owners vs Shareholders

2.5.11Diagnostic Misconceptions - Internal Recruitment

2.5.12Diagnostic Misconceptions - Employee Motivation

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