Suppliers: Business: Pearson (Edexcel): GCSE (9:1)

Supplier

A person or organisation that you buy key materials for production from

Availability

Being able to get the right supplies at the right time

Logistics

How a business manages the ordering and delivery of supplies at the right time

Trust

Having a good business relationship based on understanding and reliability

Supply Chain

The group of businesses that link together to make a product or service available to the customer

Procurement

Getting the right supplies from the right supplier efficiently

Distributor

A business that buys non-competing products and sells them to retailers or end-users, often with added services

Retailer

A business that sells directly to the customer, usually shops

Wholesaler

A business that buys and stores products and sells them, usually in bulk, to distributors and retailers

Breaks in production

When production stops or is interrupted, usually caused by supply problems

Stock management

The efficient maintenance of the right amount of stock to maintain production at desired levels

Purchasing economies of scale

Lowering average unit costs by buying large quantities of supplies at discount

Flexibility

The ability to easily adapt to changes in the type and quantity of product being made

Payment terms

The length of time allowed between receiving goods and paying for them, usually with interest applied

Contract terms

The agreed responsibilities of suppliers to provide goods to the right place and time and possible penalties

Trade-off when choosing suppliers

Possible choices between price and quality, speed of delivery and payment terms for example