Procurement & Logistics Flashcards

All 7 cards in this deck

What is procurement?

Getting the right supplies from the right supplier, at the right price and at the right time.

What is logistics?

Making sure the correct products are procured and arrive when needed — involving transportation, storage and distribution.

What is a supply chain?

The process of developing, sourcing, producing and providing goods and services to consumers.

What is a unit cost?

The cost of producing one individual item.

How can delays in logistics harm a business?

They cost money and limit cash flow if products are damaged, lost or unavailable.

Give two features of effective supply chain management.

Working with suppliers so processes run efficiently and cost effectively; getting goods at the best price and value; cutting waste to create fast, streamlined production.

What is the benefit to customers of an effective supply chain?

More satisfied end consumers, with fewer complaints and lower returns rates.