Source: https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-3-working-with-suppliers [Revision notes](https://senecalearning.com/en-gb/revision-notes.md) › [GCSE](https://senecalearning.com/en-gb/revision-notes/gcse.md) › [Business](https://senecalearning.com/en-gb/revision-notes/gcse/business.md) › [Edexcel](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel.md) › Working with Suppliers # Working with Suppliers Business: Edexcel GCSE, topic 2.3.3 ## Supply Chain A supply chain is the sequence of processes involved in converting raw materials into a final product and then distributing it to customers. There are many businesses involved in a supply chain and the number and type of firms will change depending on the product. A typical supply chain involves: ### Raw materials ![Raw materials](https://image-v2.cdn.app.senecalearning.com/2018-03/1042ed44-5e10-4421-a0b9-f6661ca74222/shutterstock_566444143.jpg) - A typical supply chain starts with suppliers of raw materials. - For example, a mining company like Rio Tinto. ### Manufacturer ![Manufacturer](https://image-v2.cdn.app.senecalearning.com/2018-03/84b20f7a-82b7-45f4-aebd-c3e5250e34cd/shutterstock_115846333.jpg) - This is the firm that turns the raw materials into a product. ### Distributor ![Distributor](https://image-v2.cdn.app.senecalearning.com/2018-03/e312f135-e013-4fc5-b274-a9293dd3c170/shutterstock_658235446.jpg) - This is the firm that takes the product and delivers it to shops. ### Retailer ![Retailer](https://image-v2.cdn.app.senecalearning.com/2018-03/9e165a16-91a1-49ae-aef6-1194bfcfb491/shutterstock_518617552.jpg) - This is the shop that sells the product to the consumer. ## Procurement and Logistics Procurement is the process of finding and buying the materials and equipment that a firm needs to provide its product or service. Logistics is the organising of the processes involved in the supply chain (including transport of raw materials and final products). ### Efficiency ![Efficiency](https://image-v2.cdn.app.senecalearning.com/2018-03/ebcedd6d-db81-4719-bd3b-9fc68803c24c/shutterstock_448263469.jpg) - Logistics and procurement are very important to successfully running a business. - If a business has effective logistics and procurement systems then it will minimise waste in the production processes and find the materials it needs at the best possible price. - This can lower the business’ average unit costs, which is likely to increase profit if they make the same number of sales. ### Jaguar Land Rover and DHL ![Jaguar Land Rover and DHL](https://image-v2.cdn.app.senecalearning.com/2018-03/40a5051f-0eb4-45bc-81bb-5b4978f48a8b/shutterstock_483722221.jpg) - For example, Jaguar Land Rover use DHL to transport the stock of its car parts to and from its factories but also within car plants (for example at the Castle Vale factory in Birmingham). ### Stopping the supply chain breaking down ![Stopping the supply chain breaking down](https://image-v2.cdn.app.senecalearning.com/2018-03/cfed995e-aa60-4a6c-b1f8-caa84e827e3c/shutterstock_114362743.jpg) - Logistics and procurement also make sure that the supply chain does not break down at any time. - If a supply chain did break down it might mean that customers want to buy a product but are unable too. - This could mean that a business gains a reputation for being unreliable. ## Test yourself on Working with Suppliers - Supply Chains - What are the components of a typical supply chain? - What do we call a firm that turns raw materials into a product? - Why do companies need effective procurement and logistics systems? - Jaguar Land Rover use DHL to transport the stock of its car parts to and from its factories but also within car plants. What is this process called? [Practise this topic for free](https://app.senecalearning.com/classroom/course/e7efbfa0-222a-11e8-9249-b5781fc38111/section/545bcb30-2383-11e8-bb4b-e16fac146884/session) - Previous topic: [2.3.2 Batch & Flow Production](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-2-batch-and-flow-production.md) - Next topic: [2.3.4 Effective Supply Chains](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-4-effective-supply-chains.md) ## Business: Edexcel GCSE contents ### 1 Investigating Small Business - 1.1 Enterprise & Entrepreneurship - [1.1.1 The Dynamic Nature of Businesses](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-1-the-dynamic-nature-of-businesses.md) - [1.1.2 Risk & Reward](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-2-risk-and-reward.md) - [1.1.3 The Role of Business Enterprise](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-3-the-role-of-business-enterprise.md) - [1.1.4 The Role of Business Enterprise 2](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-4-the-role-of-business-enterprise-2.md) - [1.1.5 The Role of the Entrepreneur](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-5-the-role-of-the-entrepreneur.md) - [1.1.6 End of Topic Test - Dynamic Nature of Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-6-end-of-topic-test-dynamic-nature-of-business.md) - [1.1.7 Grade 9 - Dynamic Nature of Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-1-7-grade-9-dynamic-nature-of-business.md) - 1.2 Spotting a Business Opportunity - [1.2.1 Customer Needs](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-1-customer-needs.md) - [1.2.2 Market Research](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-2-market-research.md) - [1.2.3 Market Segmentation](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-3-market-segmentation.md) - [1.2.4 The Competitive Environment](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-4-the-competitive-environment.md) - [1.2.5 Primary & Secondary Market Research](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-5-primary-and-secondary-market-research.md) - [1.2.6 End of Topic Test - Business Opportunities](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-6-end-of-topic-test-business-opportunities.md) - [1.2.7 Application Questions - Business Opportunities](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-7-application-questions-business-opportunities.md) - [1.2.8 Exam-Style Questions - Market Segmentation](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-8-exam-style-questions-market-segmentation.md) - [1.2.9 Diagnostic Misconceptions - Competition](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-2-9-diagnostic-misconceptions-competition.md) - 1.3 Putting a Business Idea into Practice - [1.3.1 Business Aims](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-1-business-aims.md) - [1.3.2 Business Objectives](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-2-business-objectives.md) - [1.3.3 Business Revenues & Costs](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-3-business-revenues-and-costs.md) - [1.3.4 Costs - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-4-costs-calculations.md) - [1.3.5 Revenue - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-5-revenue-calculations.md) - [1.3.6 Business Profits & Break-Even Analysis](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-6-business-profits-and-break-even-analysis.md) - [1.3.7 Profits & Losses - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-7-profits-and-losses-calculations.md) - [1.3.8 Interest - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-8-interest-calculations.md) - [1.3.9 Cash & Cash Flow](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-9-cash-and-cash-flow.md) - [1.3.10 Cash & Cash Flow 2](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-10-cash-and-cash-flow-2.md) - [1.3.11 Cash Flow - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-11-cash-flow-calculations.md) - [1.3.12 Sources of Business Finance](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-12-sources-of-business-finance.md) - [1.3.13 End of Topic Test - Business in Practice](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-13-end-of-topic-test-business-in-practice.md) - [1.3.14 Grade 9 - Business in Practice](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-14-grade-9-business-in-practice.md) - [1.3.15 Exam-Style Questions - Business in Practice](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-15-exam-style-questions-business-in-practice.md) - [1.3.16 Diagnostic Misconceptions - Profit](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-16-diagnostic-misconceptions-profit.md) - [1.3.17 Diagnostic Misconceptions - Company vs Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-17-diagnostic-misconceptions-company-vs-business.md) - [1.3.18 Diagnostic Misconceptions - Economies of Scale](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-18-diagnostic-misconceptions-economies-of-scale.md) - [1.3.19 Diagnostic Misconceptions - Cash Flow](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-19-diagnostic-misconceptions-cash-flow.md) - [1.3.20 Diagnostic Misconceptions - Break-even](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-20-diagnostic-misconceptions-break-even.md) - [1.3.21 Diagnostic Misconceptions - Fixed Costs](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-3-21-diagnostic-misconceptions-fixed-costs.md) - 1.4 Making the Business Effective - [1.4.1 The Options for Start-Up & Small Businesses](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-1-the-options-for-start-up-and-small-businesses.md) - [1.4.2 Limited Liability](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-2-limited-liability.md) - [1.4.3 Franchising & Not-For-Profits](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-3-franchising-and-not-for-profits.md) - [1.4.4 Business Location](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-4-business-location.md) - [1.4.5 The Marketing Mix](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-5-the-marketing-mix.md) - [1.4.6 Business Plans](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-6-business-plans.md) - [1.4.7 End of Topic Test - Effective Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-7-end-of-topic-test-effective-business.md) - [1.4.8 Application Questions - Effective Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-8-application-questions-effective-business.md) - [1.4.9 Exam-Style Questions - Business Plans](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-4-9-exam-style-questions-business-plans.md) - 1.5 Business Stakeholders - [1.5.1 Business Stakeholders](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-1-business-stakeholders.md) - [1.5.2 Technology & Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-2-technology-and-business.md) - [1.5.3 Legislation & Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-3-legislation-and-business.md) - [1.5.4 Legislation & Business 2](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-4-legislation-and-business-2.md) - [1.5.5 The Economy & Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-5-the-economy-and-business.md) - [1.5.6 External Influences](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-6-external-influences.md) - [1.5.7 End of Topic Test - Business Stakeholders](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-7-end-of-topic-test-business-stakeholders.md) - [1.5.8 Grade 9 - Business Stakeholders](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-8-grade-9-business-stakeholders.md) - [1.5.9 Diagnostic Misconceptions - Recessions](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/1-5-9-diagnostic-misconceptions-recessions.md) ### 2 Building a Business - 2.1 Growing the Business - [2.1.1 Business Growth](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-1-business-growth.md) - [2.1.2 Finance](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-2-finance.md) - [2.1.3 Changes in Business Aims & Globalisation](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-3-changes-in-business-aims-and-globalisation.md) - [2.1.4 Ethics & Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-4-ethics-and-business.md) - [2.1.5 The Environment & Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-5-the-environment-and-business.md) - [2.1.6 End of Topic Test - Growing a Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-6-end-of-topic-test-growing-a-business.md) - [2.1.7 Application Questions - Growing a Business](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-7-application-questions-growing-a-business.md) - [2.1.8 Exam-Style Questions - Business Growth](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-1-8-exam-style-questions-business-growth.md) - 2.2 Making Marketing Decisions - [2.2.1 Product](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-1-product.md) - [2.2.2 Product Life Cycle](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-2-product-life-cycle.md) - [2.2.3 Price](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-3-price.md) - [2.2.4 Pricing Methods](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-4-pricing-methods.md) - [2.2.5 End of Topic Test - Product & Price](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-5-end-of-topic-test-product-and-price.md) - [2.2.6 Grade 9 - Product & Price](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-6-grade-9-product-and-price.md) - [2.2.7 Promotion & Advertising](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-7-promotion-and-advertising.md) - [2.2.8 PR & Sales Promotions](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-8-pr-and-sales-promotions.md) - [2.2.9 Sponsorship & Product Placement](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-9-sponsorship-and-product-placement.md) - [2.2.10 Promotional Mix](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-10-promotional-mix.md) - [2.2.11 End of Topic Test - Promotion](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-11-end-of-topic-test-promotion.md) - [2.2.12 Application Questions - Promotion](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-12-application-questions-promotion.md) - [2.2.13 Exam-Style Questions - Promotional Mix](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-13-exam-style-questions-promotional-mix.md) - [2.2.14 Place & Wholesalers](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-14-place-and-wholesalers.md) - [2.2.15 Direct to Consumer](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-15-direct-to-consumer.md) - [2.2.16 E-commerce & M-commerce](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-16-e-commerce-and-m-commerce.md) - [2.2.17 Diagnostic Misconceptions - Decreasing Price](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-17-diagnostic-misconceptions-decreasing-price.md) - [2.2.18 Diagnostic Misconceptions - Advertise vs Promote](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-18-diagnostic-misconceptions-advertise-vs-promote.md) - [2.2.19 Diagnostic Misconceptions - Social Media](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-2-19-diagnostic-misconceptions-social-media.md) - 2.3 Making Operational Decisions - [2.3.1 Job Production](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-1-job-production.md) - [2.3.2 Batch & Flow Production](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-2-batch-and-flow-production.md) - [2.3.3 Working with Suppliers](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-3-working-with-suppliers.md) - [2.3.4 Effective Supply Chains](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-4-effective-supply-chains.md) - [2.3.5 Just In Time & Just In Case](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-5-just-in-time-and-just-in-case.md) - [2.3.6 Managing Quality](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-6-managing-quality.md) - [2.3.7 Total Quality Management](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-7-total-quality-management.md) - [2.3.8 The Sales Process](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-8-the-sales-process.md) - [2.3.9 End of Topic Test - Operational Decisions](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-9-end-of-topic-test-operational-decisions.md) - [2.3.10 Grade 9 - Operational Decisions](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-10-grade-9-operational-decisions.md) - [2.3.11 Exam-Style Questions - Managing Stock](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-11-exam-style-questions-managing-stock.md) - [2.3.12 Diagnostic Misconceptions - JIT vs JIC](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-3-12-diagnostic-misconceptions-jit-vs-jic.md) - 2.4 Making Financial Decisions - [2.4.1 Gross Profit & Net Profit - Definitions](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-1-gross-profit-and-net-profit-definitions.md) - [2.4.2 Gross Profit - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-2-gross-profit-calculations.md) - [2.4.3 Net Profit - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-3-net-profit-calculations.md) - [2.4.4 Rate of Return](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-4-rate-of-return.md) - [2.4.5 Rate of Return - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-5-rate-of-return-calculations.md) - [2.4.6 Research & Financial Data](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-6-research-and-financial-data.md) - [2.4.7 Marketing Data](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-7-marketing-data.md) - [2.4.8 Percentage Change - Calculations](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-4-8-percentage-change-calculations.md) - 2.5 Making Human Resource Decisions - [2.5.1 Organisational Structures](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-1-organisational-structures.md) - [2.5.2 Organisational Structures 2](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-2-organisational-structures-2.md) - [2.5.3 Recruitment](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-3-recruitment.md) - [2.5.4 Effective Recruitment](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-4-effective-recruitment.md) - [2.5.5 Training a Workforce](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-5-training-a-workforce.md) - [2.5.6 Motivating a Workforce](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-6-motivating-a-workforce.md) - [2.5.7 End of Topic Tests - Human Resources](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-7-end-of-topic-tests-human-resources.md) - [2.5.8 Application Questions - Human Resources](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-8-application-questions-human-resources.md) - [2.5.9 Exam-Style Questions - Human Resources](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-9-exam-style-questions-human-resources.md) - [2.5.10 Diagnostic Misconceptions - Owners vs Shareholders](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-10-diagnostic-misconceptions-owners-vs-shareholders.md) - [2.5.11 Diagnostic Misconceptions - Internal Recruitment](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-11-diagnostic-misconceptions-internal-recruitment.md) - [2.5.12 Diagnostic Misconceptions - Employee Motivation](https://senecalearning.com/en-gb/revision-notes/gcse/business/edexcel/2-5-12-diagnostic-misconceptions-employee-motivation.md)