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PURCHASING AND SUPPLY OBJECTIVE (LOGISTICS MOVING GOODS (ROAD -A very…
PURCHASING AND SUPPLY OBJECTIVE
SUPPLY CHAIN UMBRELLA
MEANING
A large set of activities besides purchasing is part of supply chain management, each of these seemingly diverse activities has one important features in common
This is part of a network that will define how efficiently and effectively goods and information flow across a supply chain
PROCESS
1) PURCHASING
- the process of making an effort to buy products or services for an organization.
2) INBOUND LOGISTICS
- the channel which links the supplier and the buyer in delivery of the goods or services.
3) QUALITY CONTROL
- work directly with suppliers to develop proper quality control procedures and processes.
4) RECEIVING AND STORING
- control of the physical processing and handling of inventory.
5) INVENTORY CONTROL
- determining inventory level of finished goods required to support customer requirements,
6) OPERATING PLANNING
- focus on the demand or forecast from the market, this gives them a fair idea on what to produce and materials needed at each production.
7) OUTBOUND LOGISTICS
- goods that are going out from a business to end customers.
8) ORDER PROCESSING
- helps to ensure that customers receive material when and where they require it.
9) CUSTOMER SERVICE
- activities that attempts to keep a customer satisfied with a product or service.
10) DEMAND PLANNING
- the process of forecasting consumer demand for a company products or services well into the future.
OBJECTIVE
PURCHASING
C) DEVELOP SUPPLY BASE MANAGEMENT
an organization have to maintain relationship with external suppliers to expand in the business.
A) SUPPLY CONTINUITY
company must have enough raw materials, component items for long term growth.
D) DEVELOP ALLIGNED GOALS WITH INTERNAL STAKEHOLDERS
an orgnization have to maintain the stronger relationship with the internal stakeholder to maintain the growth of the company.
B) MANAGE THE SOURCING PROCESS EFFICIENTLY AND EFFICIENCY
company must determine their staff levels and provide professional training and growth opportunities for employees gives a better management of the company.
SUPPLY CHAIN
B) IMPROVES CUSTOMER SATISFACTION
C) IMPROVE STANDARDZATION
A) MINIMIZE TOTAL COST SYSTEM
LOGISTICS MOVING GOODS
ROAD
-A very popular mode of transport used by suppliers and businesses to deliver orders.
advantages
Cost effective
Fast delivery
Easy to communicate with drive
disadvantage
Transport subject to traffic delays
Transport subject to breakdown
Driving regulations can cause delays
SEA
Sea transportation is used by businesses for the delivery of goods from distant suppliers. Most sea transportation is conducted in containers which vary in size. Sea tankers are used for bulk shipments of loose goods such as oil, grain and coal
advantages
Ideal for transporting heavy and bulky goods
Suitable for products with long lead
disadvantages
Difficult to monitor exact location of times goods in transit
Could be costly
Longer lead/delivery times
AIR
This mode of transport is useful to deliver products with short lead times, fragile goods and products that are not bulky. Products in high demand and in short supply may also be airfreighted in order to meet customer demands
advantages
Fast delivery, usually between 24 and 48 hours
Customer is not kept waiting for order fulfillment
Reduced lead time on supplier
disadvantages
Flight delays and/or cancellations
Cost
RAIL
Businesses use rail transportation for the delivery of a wide range of goods including post, coal, steel and other heavy goods
advantages
Fast delivery
Cost effective
Reliable
disadvantages
Reliance on rail freight operators timetable
Subject to unforeseen delays
Suppliers or customers are not always located near a rail freight depot and delivery to/from the depot can be costly and time consuming
PHYSICAL DISTRIBUTION
MEANING
Physical distribution is involves planning, implementing and controlling the physical flows of materials and final goods from place of production to the place of end use to satisfy buyers needs.
FUNCTIONS
B) Order Processing
C) Inventory Control
A) Customer Service
D) Transportation
E) Packaging