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Impact of logistical and supply decisions - Coggle Diagram
Impact of logistical and supply decisions
Time
Suppliers need to make sure the goods or services ordered arrive or are completed on time
There may be cost penalties if they are late
Knock on effect to the business of even small delays
Costs
Businesses want to keep costs as low as possible but this must be at the expense of reliablity
Its not just about lowest price through its about value for money
Lower costs will have a positive impact on profit for the business
Customer service
Customer service to deal with problems and enquiries is important
Good customer service means repeat business
It is cheaper to keep an existing customer than to gain a new one
Reliabilty of supply chain
It is essential that a suppliers can deliver what is required when it is needed
If raw materials do not arrive in time this may stop production entirely
If products continue to he out of stock customers will shop elsewhere
Length of supply chain
A long supply chain has an increased risk of problems occurring along the chain
The longer the supply chain the more businesses that must be paid
A short supply chain is easier to manage and cost less. These savings can be passed down to the consumer as lower prices. This gives the business competitive advantage