Logistics, Section 2.2 , The Fundamentals of Purchasing

• business
• Secondary Education

Grade 11 Applied girls

Section 2.3 

The Fundamentals of Purchasing

Lesson Objectives

1. We will learn the concept of fundamentals of Purchasing

2. We will learn the responsibilities of companies for various groups

Which are the types of Incoterms you learnt ?

What is the fullform of CIF?

1. Carriage and insurance Food
2. Carriage and Insurance Freight
3. Both
4. None

What is the fullform of FCA?

1. Free costa
2. Free charger
3. Free Carrier
4. All

What is the fullform of EXW?

Fundamentals of Purchasing

Another area you can consider in transport are the "fundamentals of purchasing". This can mean different things to different people or companies. However, in business studies, they refer to the responsibilities that companies have to various groups. For transport companies this could be:

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• following rules on human rights (such as workers' rights to pay and rest)

• following health and safety rules for transport workers

• using green transport (see Chapter 1)

• following all national and international laws around transport

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They can also focus on the responsibilities to consumers, including:

• reliable delivery (no lost goods)

• delivery done within an agreed time

What did you learn today?

Workbook activity 2.2.1

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Section 2.4 The five stages of Supply chain

1. Plan

2. Source

3. Make

4. Deliver

5. Return

Which are the five stages of supply chain

1. Plan

• Plan: understanding how much material/product you have, and how much you will need to source or make.

2. Source

• Source: finding companies to provide the materials/products we need.

3. Make

• Make: manufacturing (making) our products - turning the materials we source into goods that we sell.

4. Deliver

• Deliver: transporting the goods to retailers or customers.

5. Return

• Return: preparing for some goods to come back - maybe because they are broken or poor quality.

Manufacturing products means which stage of supply chain ?

1. Source
2. Plan
3. Make
4. Deliver

Preparing for some goods to come back means ?

1. Deliver
2. Return
3. Plan
4. Make

Understanding how much product you have

1. Plan
2. Make
3. Deliver
4. Source

Finding companies to provide material

1. Plan
2. Source
3. Make
4. Deliver

Activity time

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Section 2.5 Sources of Logistics Information

•1. Government bodies - certain parts of the government will give guidelines for logistics and transport

 

• 2. Professional bodies - professional institutions who provide guidelines to logistics companies

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• industry bodies - groups of senior businesspeople who can provide general support for an industry

• websites and journals of logistics information

Sources of logistics
information

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You could also consider manufacturers as a source of logistics information. Manufacturers could give information on:

• packaging and labelling

• health and safety

• environmental rules

• insurance

Manufactures can give information on :

1. Labelling
2. Packaging
3. Insurance
4. All

How many factories are operated in UAE ?

1. 6100
2. 5000
3. 6300
4. 6700