Supply chain management - a supply chain is a sequence of processes that enables businesses to coordinate supplies throughout operations to meet consumer needs
Procurement → sourcing is finding and buying the inputs that a business needs from suppliers for example a bakery getting inputs like milk and eggs from farmers
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Advantages: inputs are usually cheaper, especially from low-cost regions and more suppliers to choose from, so businesses can access better quality resources, new technologies and expertise
Disadvantages: economic costs e.g. exchange rate fluctuations and taxes, time and logistical costs to get supplies form one country to another and legal and ethical iccues, which might turn customers away
Key considerations
Volume of inputs and businesses need to balance consumer demand with input volume, businesses need suppliers who are flexible and reliable, respond quickly to changes in demand and deliver on time and keep costs as low as possible, and quality of inputs need to match the quality of the business’ products
