1. Organizational Buying

2. Characteristics of organisational procurement
Multiple influencers
Technical sophistication
Value analysis
Well established procedures
Longer term and closer relationships.
Closer interactions among multiple functions.
Supplier proximity considerations.

3. Buying situations New task Modified rebuy Straight rebuy
organisational buying

4. Buying phases Recognition of a problem Solution determination
Determining the needed item
Search for and qualification of potential sources
Acquisition and analysis of proposals

5. The Buy grid Framework for Organizational Buying Situations

6. Buying center The decision making unit
Group of individuals who come together to make a particular purchase decision
Power base

7. Buying center roles Primary roles Secondary roles Decision makers
Influencers
Secondary roles
Users
Buyers
Gatekeepers

8. Objectives in organisational buying
Task oriented
Price
Services
Quality
Assurance of supply
Reciprocity
Non task objectives

9. How purchasing activities influence buying behavior…
Material requirement planning (MRP)
Demand management
Production management
Material management
Just-in-time purchasing (JIT)
Only one supplier
Long term relationships
Frequent supplies
Precise quantity at precise time
Centralized purchasing
Buyer technology
On-line DSS, on-line order processing etc

10. Factors influence the size of the buying Centre
Characteristics of the firm
Purchasing situation
Perceived importance of the product

11. Psychological factors influencing decision making
Difference in role orientation
Difference in information exposure
Perceived risk

12. Conflict resolution strategies
competing
collaborating
Own concern
compromising
accommodating
avoiding
Others concern

13. Sources of power in conflict resolution
Reward power
Ability to influence by granting monetary benefits
Coercive power
Ability to impose punishment
Legitimate power
Formal authority
Personality power
Ability to influence with personal charm
Expertise power
Information or knowledge power

14. Evaluation of supplier performance
The categorical method
Weighted point method
Cost ratio method

15. Weighted point method Factor Weight Actual performance Score Quality40
90% acceptable
40*0.9=36
Delivery 30
90% on schedule
30*0.9=27
Price 20
125% of lowest bidder
100/125=0.8
20*0.8=16
After sales 10
60% on time
10*0.6=6
Total score 85

16. Cost ratio method

17. TERIMAKASIH