At Ford, purchasing manager has to understand the needs of Ford motor company
Business Marketing Manager should understand the industrial buying behavior
Organizational buying behavior is a process and not just a behavior
This process has several stages , each stage expected to yield a decision.
Though this is not a binding for all procurements, this model (cited ahead) provides an important insight
Problem Recognition –int/ext/comp Post Purchase Purchase Info Search/ Eval Need Recognition www.a2zmba.com General Need Description-VA Product Specification Supplier Search Proposal Solicitation Supplier Selection-VeA Order Routine Specification Performance Review
www.a2zmba.com 1.Problem recognition VA Internal – HS production equipment. Canon drum External – Euro II norms.Competitor – Turbo charger ( Advertisement – Xerox on overdrive) 2.General description of need Production manager work with purchasing manager on characteristics of HS equipment( Move from Blurred to clear vision) 3.Product Specifications Experienced production managers assist procurement manager in developing detailed specs. They will refer some literature of course. 4.Supplier Search Identify a set of possible sources to supply this HS (High speed) equipment 5.Acquisition and analysis of proposals Obtain offers and analyze. Use vendor analysis technique It may be necessary to evaluate Make/Buy 6.Supplier selection Negotiation with two finalists at least 7.Selection of order routine Job is over only on delivery. Follow purchasing guidelines, delivery, payment terms etc 8.Performance Review Bad – could lead to modified rebuy. Good – would lead to straight rebuy
Trifle change in the requirement / technology / product. Strategy Guidelines :
In Supplier : Know the factors that led to modifications.
Address these if you can.
Out Supplier : Know the factors that led to modifications.
Out perform and give better solution.
Buying Grid www.a2zmba.com New Modified Straight Problem Recognition General need description Product specification Supplier search Proposal solicitation Supplier selection Order routine specs Performance review