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Perspectives on Organizational Buying

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Perspectives on Organizational Buying ... Goals Commercial Enterprises Strategic Procurement Understanding ... of technology Top software What ... – PowerPoint PPT presentation

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Title: Perspectives on Organizational Buying


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 puchase categories

5
E-Procurement
  • Ramifications of technology
  • Top software
  • What can it do?
  • Online negotiations
  • Collaboration tools
  • Knowledge management
  • Analytical tools
  • Aberdeen study

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

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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