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operations (consumer law (consumer rights act 2015
protect customers
…
operations
consumer law
consumer rights act 2015
protect customers
- satisfactory quality
- fit for purpose
- as described
advertising = legal, truthful
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businesses replace, refund, repair
lose sales
bad reputation
business location
factors
costs
- cost of land / labour is low
- good transport links to reduce transport costs
- reliable and cheap ICT communication
proximity to market
- near customers
- easier communication
- reduce transport costs
proximity to labour
- area of skilled workers
- no skilled workers needed then area
of high pop and high unemployment
proximity to materials
- reduce transport costs
- good for environment
government
- reduce tax / help start up costs to businesses
in areas of high unemployment
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customer service
customer service
:check: trust seller, increase sales
repeat customers
:green_cross: training costs + refunds
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after sales service
:check: buy with confidence
increases sales
:green_cross: training costs + refunds
returned = sold at loss
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sales process
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influences of e-commerce on business activity
- reduce employee numbers
- recruit workers with new skills
- warehouses in cheaper locations
good transport links
- click and collect = storage / staff
- online departments alongside
- increased opportunities
worldwide markets
- fast delivery systems
advantages
- sell worldwide
- buy + sell 24/7
- lower costs (rent/wage)
- web designers
attractive at little cost
- customers easily compare
- increase customer choices
disadvantages
- increase competition
- delivery + return systems - well organised
- provide cyber security for customers
- extra costs to change operation + workers
- impersonal - not ask questions
online chat?
- products not look like online pictures
- return costs for customers
- computer systems not safe
- not all have internet access
working with suppliers
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logistical issues
time taken to deliver
- short on materials delay production
reliability of quantity and quality
- short on materials / low quality
stop / delay production
long of supply chain has increased risk of problems
- if one part of production fails, reduces output further on
customers want low delivery costs
- high production costs may mean need to charge high delivery = lose sales
customer services deal with problems / enquiries
- lose customers if not happy with service
procurement process
- what season buying for
- technology changes
- lifestyle and fashion changes
- quality and rep of suppliers
- business places order
- business arrangs workers to
recieve goods and storage