Bài giảng Business Marketing - Chapter 3: The Purchasing Function

THE PURCHASING DEPARTMENT’S FUNCTION IS TO: PROVIDE APPROPRIATE LEVELS OF SUPPLY AT THE APPROPRIATE LEVEL OF QUALITY FOR THE LOWEST TOTAL COST

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McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.Chapter 3The Purchasing FunctionTHE PURCHASING DEPARTMENT’S FUNCTION IS TO:PROVIDE APPROPRIATE LEVELS OF SUPPLYAT THE APPROPRIATE LEVEL OF QUALITYFOR THE LOWEST TOTAL COST3-*PURCHASE PRICE Vs. TOTAL COSTPURCHASE PRICE = THE DOLLAR VALUE PAIDTOTAL COST = PURCHASE PRICE + DELIVERY + STORAGE + SERVICE 3-*METHODS TO EXAMINE AND COMPARE COSTSTOTAL COST OF OWNERSHIPECONOMIC ORDER QUANTITY (EOQ)VALUE ANALYSIS3-*TOTAL COST OF OWNERSHIP OF A TANGIBLE PRODUCTTOTAL COST OF OWNERSHIP = PRODUCT PRICE + DELIVERY + INSTALLATION + MAINTENANCE / REPAIR + POWER COSTS + SUPPLY COSTS + OPERATING COSTS + FINANCING3-*ECONOMIC ORDER QUANTITYTHE QUANTITY THAT MINIMIZESORDERING COSTSANDSTORING COSTS3-*USING VALUE ANALYSISTHE OBJECTIVES OF VALUE ANALYSIS:REDUCE COSTS AND/ORIMPROVE DESIGNWhat is NewCurrently Alternatives Being Done Being Considered COMPAREBENEFITS RECEIVEDFUNCTIONS OF PRODUCTCOST OF MATERIALSWORK PROCESS INVOLVEDOUTCOME: GREATER VALUE FOR LESS COST3-*Step 8Evaluation of product performanceStep 7Selection of an order procedureStep 6Evaluation of proposals and selection of a supplierStep 5Acquisition and analysis of proposalsStep 4Search for qualified suppliersStep 3Development of detailed specificationsStep 2Definition of the product-type neededStep 1Recognition of a needEXHIBIT 3-3STEPS IN THE BUYING PROCESS3-*BUY-PHASESNEW TASKCOMPLETE BUYING PROCESS REQUIRED EMPHASIZESPRODUCT DEFINITION AND SPECIFICAIONSMODIFIED REBUYEMPHASIZES SUPPLIER SEARCH AND EVALUATIONSTRAIGHT REBUYEMPHASIZES NEED RECOGNITION AND PURCHASE3-*VENDOR ANALYSIS RATINGSA RATING FORM SHOULD LISTThe most important product attributesThe most important service support attributesPricing variablesDelivery variablesQuality variablesSupplier capabilities3-*PURCHASING PARTNERSHIPS ARE MADE WITH VENDORS WHO PROVIDE:HIGH-PURCHASE-VOLUME MATERIALS, COMPONENTS OR STRATEGIC PRODUCTSINFORMATION AND TRAINING FOR EFFECTIVE PRODUCT USESERVICES REQUIRING SPECIALIZED KNOWLEDGE FOR COST REDUCTIONS AND/OR PERFORMANCEMATERIALS UNAVAILABLE ELSEWHERE3-*IMPROVE PERFORMANCE: STAYING AHEAD OF PURCHASING TRENDSREDUCE PURCHASING COSTSCUTBACK ON EMPLOYEESREDUCE NUMBER OF VENDORS/ TRANSACTIONSBUILD RELATIONSHIPSCENTRALIZE PURCHASING ACTIVITIESUSE THE INTERNET3-*IMPROVE PERFORMANCE: STAYING AHEAD OF PURCHASING TRENDS (continued)OUTSOURCE IN-HOUSE ACTIVITIESTRAININGMANUFACTURINGPROCESSING ACTIVITIESINVOLVE SUPPLIERS (ESI)3-*IMPROVE PERFORMANCE: STAYING AHEAD OF PURCHASING TRENDS (continued)CROSS-FUNCTIONAL TEAMS – MADE UP OF COMPANY DEPARTMENTS, SUPPLIERS, CUSTOMERSINCREASE PROFESSIONALISM THROUGH CERTIFICATION PROGRAMS AND ESTABLISH A CODE OF ETHICS3-*SALES SURVIVAL QUESTIONS: CAN YOUR SALESPEOPLE ANSWER THE FOLLOWING QUESTIONS?WHAT IS A CROSS-FUNCTIONAL TEAM?CAN YOU RECOGNIZE ONE AT YOUR CLIENT’S ORGANIZATION?DO YOU KNOW HOW TO GET YOUR COMPANY INCLUDED IN YOUR CLIENT’S CROSS-FUNCTIONAL TEAM?WILL YOUR COMPANY GIVE YOU THE PEOPLE RESOURCES TO SUPPORT YOUR CLIENT’S NEEDS?3-*SUCCESSFUL CROSS-FUNCTIONAL PURCHASING TEAMS DEPEND ON:APPROPRIATE LEADERSHIPFACE-TO-FACE COMMUNICATIONCONTINUITY– IN IT FOR THE LONG TERMTOP-LEVEL COMMITMENT to provide for key individuals’ full participationEMBRACING DIVERSITY of experience, backgrounds, outlooks, and corporate philosophyEXHIBIT 3-93-*Changing company focus: MAKE-OR-BUY? Purchasing Determines Who Provides Best Value for Lowest CostBest-Value ProviderActionIn-HousePartnerTrainingTransaction ProcessingPaper ProcessingProduct DesignProduct ManufacturingComponent Part ManufacturingR&DMarketingSalesAdvertisingResearchSupportHuman Resources Administration3-*MAKE-OR-BUY DECISION ANALYSISACCEPTABLE RISKBuy the Products,Components or ServicesUNACCEPTABLE RISKRetain Production andProvide ServicesRISK ASSESSMENTFINANCIAL RISKSResource AllocationInvestment of ResourcesAccurate Cost AnalysisLegal IssuesMARKETING RISKSCustomer ImpactSupplier ImpactMANUFACTURING RISKSReliabilityExpertiseEquipmentPatent ProtectionPOLITICAL RISKSManagement commitment/willingness to partnerTurf BattlesInternal Strife3-*ETHICAL ISSUES FOR BUYERSKEY REQUIREMENT: EVERY COMPETITOR HAS AN EQUAL OPPORTUNITY TO SELL TO THE BUYER AND HAS EQUAL ACCESS TO INFORMATIONAS A BUYER, YOU MUSTPROVIDE EQUAL ACCESS TO THE BUYING OPPORTUNITYBE TOTALLY RESPONSIBLE TO YOUR EMPLOYER3-*
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