Class Intro 6

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McDonald's, friendlier ribs. Consumer pressure, with animal welfare groups, pressures organization to change. McDonald's then needs to change the behavior of its suppliers, or change suppliers. McDonald's, friendlier ribs. Consumer pressure, with animal welfare groups, pressures organization to change. McDonald's then needs to change the behavior of its suppliers, or change suppliers.
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 +Apple: working conditions in its supply chain: China

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Business Customers and Buying Behavior.

The Economy! Weaker consumer demand has knock-on consequences throughout the supply chains. Combined with higher oil prices (cost of inputs), impact corporate buying.


Differences with final consumers: Purchase criteria and specifications; Multiple buying influence; Problem-solving process; B2B e-commerce; Buyer-seller relationships

Key types: Manufacturers; Producers of services; Retailers and Wholesalers; Government; Non-profits

Specifications: describe the need

Quality certification: ISO 9000

Buying Center: Buyers; Influencers; Deciders; Gatekeepers; Users


Influences on organizational buying includes: Vendor analysis; Behavioral needs; Ethical concerns; Centralization of purchasing

Halliburton Ego, Alcohol to Blame, Says KBR's Ex-Chief

McDonald's, friendlier ribs. Consumer pressure, with animal welfare groups, pressures organization to change. McDonald's then needs to change the behavior of its suppliers, or change suppliers.

Apple: working conditions in its supply chain: China


Types of organizational buyers: straight rebuy; modified rebuy; new-task buying

New-task buying requires new information: search engines; web-sites; online communities; competitive bids

Sources of information: includes whitepapers: Engagement Marketing Revisited: How to Embrace the New Social Media Tools


Buyer-seller relationships, benefits of close relationship: mutual trust; long-term outlook; share tasks to reduce costs

Buyer-seller relationships, risks of close relationship: reduce flexibility; lock-in; not economical

Dual sourcing as an option, spreading risk of supply chain disruption.

WSJ: Reinforcing the Supply Chain


North American Industry Classification System


Manufacturers: few are large; clustered in geographic areas; classification by business data; NAICS codes

Services: smaller and more spread out; informal buying process

Retailers and wholesalers: committee buying; buying based on data; reorders are straight rebuys

Example: Selling to Barnes & Noble Selling to store, versus selling to corporate


Government: large; competitive bids; "approved" supplier list; foreign governments; FCPA

7% hiring of disabled workers, for government contractors

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