Professional Documents
Culture Documents
Unlike the ultimate consumer, the industrial buyer is motivated by budgetary considerations such as profit goals, expense quotas, and cost benefit guidelines. He must be prepared to justify his purchase on the basis of measurable performance. Consequently, the considerations, which influence the professional buyers decision to patronize one supplier rather than another, tend to be quality, service, and price.
because by doing so they can save shutdown time of machines that affect the operation of an entire production complex, such as an assembly line or a processing group. An organization can reduce the uncertainties by preventive maintenance, but it cannot eliminate them. The size of the inventory the user must carry to supply his erratic needs will be materially reduced if his supplier offers a parts services which features: Adequate and representative warehouse stocks at pints convenient to using centers backed b adequate factory stocks Prompt handling and delivery of all orders Reliable delivery information and promises Willingness to give service out of the he ordinary routine in emergencies.
SAVINGS:-
apart from the best combination of quality, service, and the price, the industrial customer is also motivated to realize savings in the use of materials and equipment or in the methods by which they are procured. The most obvious places professional buyers look for savings are in the substitution of material and new types of equipment. Finding materials which possess the same properties as those in use but which are easier to process (higher output), safer to use (low insurance rates) or cheaper to transport (less in freight) produce measurable savings.
ASSURANCE TO SUPPLY:-
assurance to supply is vital to the purchasing officers. If the supply flow of an item is interrupted, probable resulting shortages may cause shutdowns of production operations. When a shortage threatens, the buyer may be able to avoid a shutdown by purchasing emergency orders from suppliers with whom he does no ordinarily deal, but such orders are apt to be expensive.
BUYER TEMPERAMENT:-
there can be no doubt that the purchasing officer is a human being before he is a purchasing officer; and the same is true to the other functional executives who influence buying. Each of them is interested in his own status, prestige, ambitions and personal feelings, as well as in the welfare of the firm for which he works.