| 'Just In Time' Purchasing | |||
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Retail businesses must have a good stock control
system. It is not a good idea to order too many of an item that is not going
to sell or may perish. This would lead to wastage
and a subsequent decrease of profit..
'Just-in-time' purchasing means ordering goods from a supplier when they are needed - just before they run out. This is possible if the goods are delivered quickly. Agreements need to be made with a small number of suppliers to ensure fast and reliable deliveries. There is a reduction in...
Delivery is decided by the retail business and not by the supplier. More frequent deliveries mean fresher
goods - important for supermarkets for example. |
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