Logistics & Supply Decisions Flashcards
All 9 cards in this deck
What is a supply chain?
All the businesses and stages involved in getting a product from raw materials through to the final customer.
What is logistics?
Managing how raw materials and goods are transported and stored: getting supplies into the business and finished products out to its customers.
What is lead time?
The time between a business ordering stock and that stock being delivered.
How can an unreliable supplier affect customer satisfaction?
Deliveries arrive late, so the business runs out of stock and cannot meet orders — customers are disappointed and switch to rivals, reducing revenue.
How can improving logistics reduce a business's costs?
Stock is moved and delivered more efficiently with less waste, so the cost of producing each product falls and the profit margin rises.
Give one impact on a business of having a long supply chain.
Costs are higher and deliveries take longer, because more businesses and stages must be co-ordinated to move materials.
Why is timing important in logistics for a manufacturer?
Raw materials must arrive on time so production is not delayed and finished products reach customers when promised.
Why is a supplier's customer service a factor in choosing it?
If items are missing or faulty, a supplier with good customer service puts it right quickly, so the buying business's production and sales are not disrupted.
Why do businesses selling fresh products need especially reliable suppliers?
Fresh goods need frequent, often daily, deliveries; if one is missed the business has nothing to sell and its reputation suffers.