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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 by enabling electronic ordering. By allowing customers to place orders online, Casey can reduce lead times for stock availability and ensure that inventory levels are managed more efficiently. This minimizes manual errors and allows for a more streamlined approach to restocking products.
Step 2
Explain ONE performance objective that is relevant to the operations function of the business.
Answer
A vital performance objective for Casey is dependability. This means ensuring that customers can consistently find the products they need whenever they visit the store. If Casey maintains high dependability, he can enhance customer loyalty, ensuring that they choose his store over competitors, which is crucial for business sustainability.
Step 3
Is supply chain management important to Casey’s business? Justify your answer.
Answer
Yes, supply chain management is crucial for Casey’s business as it directly impacts profitability. A well-managed supply chain allows Casey to maintain optimal stock levels, preventing shortages that can lead to lost sales. By efficiently managing suppliers and inventory, he can reduce costs, leading to better pricing for customers. This strategic management is not just a cost-saving measure but also a way to ensure that the store remains competitive in the market, ultimately increasing profits.