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Casey owns and operates an independent discount fuel and convenience store - HSC - SSCE Business Studies - Question 23 - 2013 - Paper 1
Question 23
Casey owns and operates an independent discount fuel and convenience store. (a) Outline ONE way that e-commerce could assist Casey with supply chain management. (b... show full transcript
Worked Solution & Example Answer:Casey owns and operates an independent discount fuel and convenience store - HSC - SSCE Business Studies - Question 23 - 2013 - Paper 1
Step 1
Outline ONE way that e-commerce could assist Casey with supply chain management.
Answer
E-commerce can assist Casey with supply chain management through electronic ordering. By utilizing electronic systems for ordering stock, Casey can significantly reduce lead times for replenishing inventory. This allows for a more efficient restocking process and better inventory management, ultimately reducing the risk of stockouts.
Step 2
Explain ONE performance objective that is relevant to the operations function of the business.
Answer
One important performance objective for Casey is dependability. This is crucial because it ensures that Casey always has the necessary stock on hand for customers, allowing them to buy the products they need when they want them. If Casey can maintain a consistent supply, it will enhance customer satisfaction and loyalty, positively impacting the store's reputation.
Step 3
Is supply chain management important to Casey’s business? Justify your answer.
Answer
Yes, supply chain management is vitally important to Casey’s business as it directly affects profitability. Effective supply chain management helps to ensure that Casey has the right products available at the right time, which can reduce costs associated with excess stock or emergencies.
If Casey can optimize supply processes, such as by using reliable suppliers or implementing inventory management tools, he can lower costs and improve service levels. Additionally, a well-managed supply chain can help Casey respond to market demand more flexibly, ultimately leading to increased sales and customer satisfaction.