HOW DO BUSINESS BUYERS MAKE THEIR

DECISION

PROBLEM RECOGNITION

GENERAL NEED DESCRIPTION

SUPPLIER SEARCH PROPOSAL SOLICITATION

SUPPLIER SELECTION

ORDER ROUTINE SPECIFICATION

PERFORMANCE REVIEW

THE PROCESS FLOW

PROBLEM RECOGNITION

TRIGGERED BY EXTERNAL OR INTERNAL REACTION, NEED FOR A

SOLUTION

GENERAL NEED DESCRIPTION

BUYER DETERMINES THE GENERAL CHARACTERSTICS AND REQUIRED

QUANTITY

SUPPLIER SEARCH

SUPPLIER SEARCH

CATALOG SITES

VERTICAL MARKETS

PURE PLAY AUCTION

SITES

SPOT MARKETS

PRIVATE EXCHANGE

S

BUYING ALLIANCES

SET UP EXTRANET

LINKS

FORM BUYING

ALLIANCES

SET UP COMPANY BUYING SITES

USE OF E-PROCUREMENT

PROPOSAL SOLICITATION

BUYER INVITES PROPOSALS, DETAILED PROPOSALS FOR COMPLEX NATURED GOODS

SELECTED SELLERS MAKE FORMAL PRESENTATION

SUPPLIER SELECTION

BUYERS SELECT BASED ON CVA(CUSTOMER VALUE ASSESSMENT ), THE ATTRIBUTES AND THEIR IMPORTANCE CHANGES WITH

SITUATION

OVERCOMING PRICE

PRESSURES

IMPROVING PRODUCTIVIT

Y

RESTRICTIVE CONDITIONS

LIMITED QUANTITIES

NO REFUNDS

NO ADJUSTMENTS

SOLUTION SELLING

ENHANCE COSTUMER REVENUES

DRECREASE CUSTOMER

RISKS

REDUCE CUSTOMER

COSTS

ORDERING ROUTINE SPECIFICATION

BUYER LISTS SPECIFICATIONS AND OTHER DETAILS FOR ORDER

STOCKLESS PURCHASE PLANS

• LONG TERM CONTRACT TO PROVIDE SERVICES OVER A LONG PERIOD OF TIME

VENDOR MANAGED INVENTORY

• THE RESPONSIBILTY IS SHIFTED TO THE VENDORTHROUGH CONTINOUS REPLENISHMENT

PERFORMANCE REVIEW

BUYER PERIODICALLY REVIEWS THE PERFORMANCE ON VARIOUS

PARAMETERS, THEREBY ADJUSTING QUANTITY OR PRICE IN UPCOMING

PURCHASES

PROBLEM RECOGNITION

GENERAL NEED DESCRIPTION

SUPPLIER SEARCH PROPOSAL SOLICITATION

SUPPLIER SELECTION

ORDER ROUTINE SPECIFICATION

PERFORMANCE REVIEW

SUMMARY

THANK YOU

BY YATIN ARORAB.TECH STUDENT DELHI TECHNOLOGICAL UNIVERSITY