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Perspectives on Organizational Buying

Perspectives on Organizational Buying. Chapter 2. Commercial Enterprises. “Manufacturers, construction companies, service firms, transportation companies, selected professional groups, and resellers.”. Commercial Enterprises. Unique Characteristics Distribution by size

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Perspectives on Organizational Buying

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  1. Perspectives on Organizational Buying Chapter 2

  2. Commercial Enterprises • “Manufacturers, construction companies, service firms, transportation companies, selected professional groups, and resellers.”

  3. Commercial Enterprises • Unique Characteristics • Distribution by size • Geographical concentration • 50% of US manufacturers in 8 states • Implications • Classifying commercial enterprises • NAICS • The purchasing organization • Department • Goals

  4. Commercial Enterprises • Strategic Procurement • Understanding Total Cost • Levels • Level 1: Leveraged Buy (Buy for Less) • Centralize buying • Level 2: Linked Buy (Buy Better) • Streamline • Level 3: Value Buy (Consumer Better) • Value Analysis • Complexity management • Supplier involvement • Level 4: Integrated Sell (Sell Better) • Segmenting purchase categories

  5. E-Procurement • Ramifications of technology • Top software • What can it do? • Online negotiations • Collaboration tools • Knowledge management • Analytical tools • Aberdeen study Source: https://systemsplusgroup.blogspot.com/2015/05/e-procurement.html

  6. E-Procurement • Direct & Indirect Goods • $1.4 trillion on indirect goods • Electronic Requisitioning • Secure personal log-in • Browse authorize supplier catalog • Requisition/Order creation • Approval routing • Order submission/fulfillment • Order tracking and receipt • Reverse auctions Source: http://symphonysummit.com/products/e-procurement

  7. Government • $1.7 trillion annually • Understanding government contracts • More rules and regulations • Compliance program • Set-aside program • Minority subcontracting program

  8. Government • Payment • Fixed-price contracts • Cost-reimbursement contracts • Incentive contracts • Defense • Defense Logistics Agency • General Services Agency • $18 billion • Nondefense • Several companies • Federal Supply Schedule Program

  9. Government • Federal Buying • President signs or accountant • Potential supplier- 30 days • Formal advertising • Negotiated contract buying

  10. Institutions • Examples • Factors • Agents • Targeted strategy • What to demonstrate • Group purchasing

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