GCSE Business (Pearson IGCSE)

Topic Summaries

Operations

Procurement and supply

Procurement is the process of selecting suppliers and purchasing the goods and services a business needs to operate. Effective procurement balances cost, quality, and reliability.

  • Key procurement factors:
    • Quality: poor-quality materials and defects damage reputation.
    • Delivery: timely and reliable delivery avoids production delays.
    • Cost: competitive pricing improves profitability.
    • Trust: good supplier relationships encourage flexibility and reliability.
  • Impact of logistics and supply chain decisions:
Area Impact
Costs Faster shipping (e.g. air freight) is more expensive but may be necessary for perishable or urgent goods.
Customer satisfaction Late deliveries or stockouts damage customer trust.
Reputation Ethical sourcing and smooth logistics build a brand’s credibility.

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