Issue link: https://www.mheducation.com/highered/ideas/i/1308940

Contents of this Issue


Page 48 of 86

Supplier relationship management (SRM) is a strategy by which organizational buyers evaluate the relative impor- tance of suppliers and use that information to determine with whom they want to develop partnerships. 23 The first step is to identify the annual spend, or amount that is spent with each vendor and for what products. One outcome is the ability to consolidate purchases and nego- tiate better terms. After the relative importance is identi- fied, organizational buyers frequently use a formal method, called vendor analysis, to summarize the bene- fits and needs satisfied by a supplier. When using this procedure, the buyer rates the supplier and its products on a number of criteria, such as price, quality, perfor- mance, and on-time delivery. Note that the ratings of suppliers can be affected by the perceptions and per- sonal needs of the buyers. Then the ratings are weighted by the importance of the characteristics, and an overall score or evaluation of the vendor is developed. The next section describes the multiattribute model, which is useful in analyzing how members of the buying center evaluate and select products. The model also suggests strategies salespeople can use to influence these evalua- tions. Fastenal places vending machines in clients' locations because this allows its customers to buy what they need when they need it—a form of just-in-time inventory manage- ment. Courtesy of Fastenal Sales forecasts Promotion schedule Request for quote Purchase order Change order Material release Quote Order Acknowledgment Shipping notice Invoice Promotion schedule Pick up order Pick up order Shipment status Advanced shipping notice Bill of lading Shipment status Carrier Supplier Buyer Exhibit 3.6 EDI Transactions CHAPTER 3: Buying Behavior and the Buying Process 79

Articles in this issue

view archives of 2020_BEC_FlipBooks - F20_Castleberry_Selling11eFlipbook_11-6-20