Unit 3 - Business Operations

What is a supply chain?

A network of organizations, people, activities, information, and resources involved in supplying a product or service to a consumer.

List three types of businesses that are usually part of a supply chain.

1) Manufacturers. 2) Distributors. 3) Retailers.

What are three important factors that a business should consider when choosing a supplier.

1) Price. 2) Quality. 3) Reliability.

What does procurement mean?

The process of finding, acquiring, and buying goods, services, or works from an external source.

Explain how effective procurement and logistics can improve the efficiency of a business.

It ensures timely delivery of materials, reduces costs, and minimizes waste.

Explain how effective procurement and logistics can improve customer satisfaction.

It ensures products are available when needed, improves delivery times, and enhances product quality.

Why is having a good relationship with suppliers a benefit of managing a supply chain effectively.

It leads to better communication, reliability, and potential cost savings.

Why is it important for the firm to reduce waste and unnecessary costs in its supply chain?

Reducing waste and costs improves profitability and sustainability.

Give an example of job production.

Bespoke wedding cakes.

Give an example of flow production.

Plastic bottles.

What is meant by 'flow production'?

Continuous mass production of standardized products.

Give one advantage of JIT (Just-in-time)

Reduces storage costs.

What does Just-in-case (JIC)?

A stock control system where stock is ordered and stocked just-in-case it is needed.

Explain why business may prefer to use just-in-case (JIC)?

It provides buffer stock for sudden demand spikes.

Why do costs associated with maintaining quality standards?

Higher quality materials and training increase costs.

What is TQM stand for? And what does TQM involve?

Total Quality Management; involves continuous improvement in all aspects of the business.

Give one advantage TQM

Improves staff motivation.

Explain which one following might make it difficult for growing businesses maintain high quality standards:

They become overwhelmed with customer orders

They franchise the business

Describe steps sales process

Prospect, Engage, Acquire, Keep.

Explain reason why having good product knowledge allows sales staff provide better customer service

They can answer customer questions accurately and recommend suitable products.

Give way which sales staff could make sure they engage positively their customers:

By being friendly and attentive.

Describe two benefits e-commerce has on businesses customers:

1) Convenience. 2) Wider product selection.

Explain how growth social media help make sure website provides good customer service:

Social media allows real-time interaction and feedback.

Explain how providing excellent customer service helps increase customer loyalty:

Satisfied customers are more likely to return and recommend the business.