The Purchasing Mix & Distribution By Jake, Katy, Ione Distribution.

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Presentation transcript:

The Purchasing Mix & Distribution By Jake, Katy, Ione Distribution.

The Purchasing Mix Quality Quantity Time Dependability Price Location

Quality The quality of raw materials must be acceptable and consistent. If not the products wont be to the standards of the company.

Quantity A supplier should be able to meet the companies quantity demands. If not companies may not be able to meet customer demands.

Time Suppliers must be able meet the companies dead lines. If not the productivity of the company may be negatively

Price The companies will want to purchase reasonable priced raw materials so that they get value for money. If the price for the materials is to high, the companies costs might be to high and they could be making a loss. This means they may need to find a new cheaper supplier.

Dependability The supplier should be on time, likely to stay with the business and have reliable delivery systems.

Location (of supplier) If the companies supplier is located far away from the business the cost of deliveries may increase and also they may be late. If a delivery is late it could effect the production of the company.

Distribution Channels of Distribution Manufacturer, Customer Manufacturer, Retailer, Customer Manufacturer, Wholesaler, Retailer, Customer The Purchasing Mix

Manufacturer, Customer This channel provides the customer with fresh product, so this is suitable for perishable goods. Another advantage would be that the customer gets a cheaper deal.

Manufacturer, Retailer, Customer The retailer will add more price to the goods because they are adding packaging and also they add price so they can make a profit. If the manufacturer does not have a delivery fleet or sales force the retailer will provide this.

Manufacturer, Wholesaler, Retailer, Customer This channel is the most expensive for the customer because it has been through all three stages.

Transport and Delivery In the UK over 80% of goods are delivered by road making this the most common transportation of goods.

CORNERS QUIZ! Which one of these is not part of the purchasing mix? a. Quality b. Quantity c. Probability d. Price

Ideally what level should a warehouse be on? a. Highest floor possible b. It doesn’t matter c. Underground d. Ground level

What is the most common method of transport of goods in Britain? a.Road b.Pipeline c.Rail d.Water

Which of these is not a channel of distribution? a. Manufacturer, Customer b. Manufacturer, Retailer, Customer c. Manufacturer, Retailer, Wholesaler, Customer d. Manufacturer, Wholesaler, Retailer, Customer

What colour socks is Jake wearing? a.Green b.Black c.Christmas socks d.White