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.
b.
c.
d.
Road
Pipeline
Rail
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.
b.
c.
d.
Green
Black
Christmas socks
White