Nature of Business/ Industrial

buying

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External Stimulus

Proposal evaluation

Existing/Previous

supplier

Proposal acquisition

Order routine established

Supplier Selection

Feedback on performance

New supplier

Internal Stimulus

Supplier Buyer information

exchange

Suppliers screening

Problem solution/alternatives

Problem Recognition

New product required

Make Or

Buy

Type of product ?

Search for qualified supplier

Solution choice :purchase product

Contact with potential supplier

Suppliers plant visits

Phases in the Purchase Decision Process

Phase -1

Anticipation or Recognition of a problem(Need)

Phase-2

Determination of the characteristics and Quantity of Needed items

Phase-3

Description of the Characteristics and Quantity of the Needed items

Phase-4

Search for and Qualification of Potential Sources

Phase-5

Acquisition and Analysis of Proposal

Phase-6

Evaluation of Proposals and Selection of Suppliers

Phase-7

Selection of an order routine

Phase-8

Performance Feedback and Evaluation

Overview of buy grid

• Creeping commitment

• Center of gravity

Buying centers and influencers

• Identifying buying centers

– Marketing

– Manufacturing

– R & D

– General management

– Purchase

Buying center roles

• Deciders

• Influencers

• Users

• Buyers

• Gatekeepers

Objectives in organizational buying

• Task oriented objectives

• Price

• Services

• Quality

• Assurance of supply

• Reciprocity

• Non task objectives