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Talk about organizational buying behavior

2020-06-24 来源: 51Due教员组 类别: Essay范文

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<p class= 下面为大家整理一篇优秀的essay代写范文 -- Talk about organizational buying behavior,文章讲述在谈论组织购买行为时,有一条声明指出,要从供应商那里获得物有所值,首先要进行有效的内部需求管理。所有商品,服务和工作的采购均应基于物有所值。实现物有所值是采购的一般要求。金钱的价值不仅是价格,供应商的可用性,额外成本,可能的数量购买特权,采购目的,甚至是环境方面的考虑因素以及长期环境成本,供应商的位置等等。这些因素应予以考虑。

 

Talk about organizational buying behavior

 

1. Introduction

When talk about the organisational buying behaviour, there is a statement point out that achieving good value for money from suppliers begins with effective internal demand management.

All the purchases of goods, services and the work should be based on the value for money. Achieving good value for money is the general requirements for procurement. The value of money is not just only price, the supplier’s availability, the extra costs, the possible privilege for quantity purchases, the aims of the procurement, even the environmental considerations and the costs for long term environmental, the location of the supplier, all those factors should be take into account.

Demand management is a kind of planning method used to predict, demand planning and management of products and services. It is a means of control and track the business requirements and internal procurement business. Demand management indicate to treat the user as the center, make the demand of the user as the beginning, focus on the needs of user to estimate the value and management, and try to make decisions with the useful information. The purpose is to realize the activity with utility maximization. The mainly content of demand management are the forecast and customer order management. It is also act as the top part of the planning process. The aim of demand management is to build the most reasonable project in order to fulfill the future demand in the processing, and update the plan when the situation is changed.

With the help of the effectively internal demand management, on the one hand, it can avoid meaningless change in sales or operation plan, the less meaningless change in the plan of master production, the more easily to achieve value for money. On the other hand, it also can help suppliers to catch meaningful changes during the processing as soon as possible. Thus, the suppliers can catch the opportunity to take effective measures. Under normal circumstances, the internal demand constraints act as barriers effectively to supply management appropriate active or passive choice. According to Watson and Lonsdale (2003), demand management problems are determined as the problems that encountered during the purchasing process. These problems often affect the value for money.

Thus, the statement relates to the organisational buying behaviour which thinks the achieving good value for money from suppliers begins with effective internal demand management is unilateral. We should treat this statement dialectically. In this paper, I will from several aspect to critically discuss the key themes with some examples in the following.

2.The definition of the value for money.

According to the UK Treasury, the definition of the value for money is describe as follow:

“Value for Money is the optimum combination of whole-of-life costs and quality (or fitness for purpose) of the good or service to meet the user’s requirements.”

As Watson and Lonsdale (2003) point out, the improved costs of transaction,the missed opportunities to restructure the purchase of categories cost, the losing of greater leverage, the mistakes to standardise on best value for money deal, the lower position in supplier’s customer portfolio, the inharmonious collaborative relationships and the developed exposure to opportunistic behaviour are the main aspect that can influence the value of money.

3.The supply management.

As for the supply management, it includes supplier relationship management, contractual risk management, supply chain operations and demand management.

According to Cox (1999) and Cox, Lonsdale, Watson and Qiao (2003), commercial share of surplus value and operational relationship styles is the two dimension understanding of the supplier relationships at a basic level. In fact, supplier relationship management is a kind of enterprise resource acquisition guidance management system which purpose to expand the partnership of cooperation and mutual assistance, mutual development and expanding market share. To some extent, the supplier relationship management acts as an investment.

The contractual risk management can be divided into potential hazards and management action two aspects. Contractual risk event is happened occasionally, once it occurred will bring losses to a party. But the risk is also indicated the chance. It also will bring benefits. On the other hand, contract risk is relative. Definition of risk belongs to the problem of responsibility division. In general, contractual risk management can help the supplier to reduce loss.

All supply chains have problems. The problems can affect the ability of the company to satisfy their customers. Therefore, supply chain operations are very necessary. Physical efficiency and market responsive both affects the supply chain, the supply chain responsiveness asks for collaboration.

There are eight problems of effective internal demand management impedes the good value for money achieving process. The first one is the product over-specification. The over-specify requirement generates more cost and difficult. The second one is the premature establishment of the specification. This problem may result in the monopoly. The third one is placed on the contact of the second one, the frequent changes in the specification is also a bug. The frequent changes always accompany more costs, in order to accommodate the changes, the nuisance value is increased while the value for money is decreased. Next one is the poor demand information. The poor demand information against the lean supply principle. It makes the supply chain keep inventory with high level as insurance. Fragmentation of spending is a common problem in demand management. The value of each single transaction is limited, thus the product cost increased, and the multiple interactions lead to higher transaction costs. Maverick buying also has a negative influence on the internal demand management. Maverick buying without the competence both in contract and negotiate, it also may diminish the relationship between the volume and value. Sometimes, inter-department power and politics also hinder to achieve the good value for money. Because of the personal benefits, the internal clients may make decisions without considering the organization’s interests. Similarly, the culture of the organization and the risk adverse nature can still serve as a barrier to the effective demand management.

For many years, the efforts of internal effective demand management are not easy. Without the internal effective demand management, the problems and chaos make it become harder to achieve good value for money from suppliers, but it is not the internal effective demand is the only factor. The influence of the internal effective demand management is not only action at the beginning. Achieving good value for money from suppliers is a continuous process with the mix impact.

4.The impact factors of good value for money.

In order to achieve good value for money, it is very important to consider the purchase cost, maintenance and operation cost, processing cost, quality and the ability of the suppliers to meet the requirements.

The competition is very helpful to achieve good value for money for suppliers. The competition between suppliers in the suitable method can improve the production efficiently and effectively. As example,because of the competition among the mobile phone maker, International mobile phone production businesses Apple company and Samsung have to devote their attention to technical innovation and product upgrading. At the same time, saving the cost of the product as much as possible in order to ensure the sales of their products. The competition makes the suppliers become more available, achieve the good value for money from suppliers and provide more choices for people.

The effectiveness is one of the most important factors when mention the good value for money. To be honest, efficiency determines the development prospect and destiny of the suppliers. When to analyze success reason for the number of successful suppliers, may be the way of their management, organizational structure, and decision-making mode is all different. However, there is no doubt that the effectiveness is the essential attribute. To some extent, the efficiency is one of the key to achieve good value for money from suppliers, it is also the main attribute for the success of enterprise.

The behaviour of the supplier is also effect the good value for money. Opportunism in the marketing and sales may generate the potential for above normal profits. The different cognition to consumer and the bounded rationality influence the decision of supply. Managerial vision and feasible foresight of the supplier also impact the development of the company. The behaviour of supplier flows from both the disposition and circumstance. Sometimes, a subtle difference in supplier behaviour may generate to big difference in the final results, especially under the fierce competition. Many failure experiences for a lot of companies are the typical examples to prove the importance of the supplier behaviour.

In the current rapid development of society, the supplier selection plays an important role on the good value for money. A trade off between competence and congruence decides the selection of a supplier. The evolving internet technologies affect the supplier selections. Over the past decade, the leader of Nokia could not catch the changes and make some unsuitable selection, which generates the tragedy of the buyout by Microsoft and the collapse of the Nokia. Thus, in order to achieve good value for money from suppliers, the supplier selections also should be concerned.

As for the suppliers, the value for money usually indicate the proper quality, the service to respond to the business requirements, and proper governance.

 The competition and effectiveness both influence the suppliers to achieve the good value for money. The behaviour and selection of the supplier also have their own influence on the good value for money. On the other hand, the supplier’s availability, the extra costs, the possible privilege for quantity purchases, the aims of the procurement, even the environmental considerations and the costs for long term environmental, the location of the supplier all have great effect on the good value for money.

It is clear that with the higher availability of suppliers, receive the better value for money. The additional costs indicate the money spends on the transport, storage, postage, packing and so on. Normally, the less costs maybe better, however, not all less costs on behalf of good value for money. Only with the right quality, right quantity and right time, the right prices can achieve the good value for money. Procurement needs tangible goals and measure in order to assess the value. Thus, the objectives of the procurement are also vital. People always easy to ignore the effect of the environmental considerations and long term environmental costs. In fact, the environmental considerations limited the development of the company. The long term environmental costs also have a great effect on the way to achieve good value for money. The location of the supplier influence the value for money on some contract which related to the distance. Such as the ICT service contract, a closer supplier may provide a more early consultant delivery days and lower costs compare with others spend time and money on the transport.

5. Discussion

According to the analysis, it is obvious that the effective internal management plays a key role in the process of achieving the good value for money from suppliers. But the statement of organisational buying behaviour which thinks the achieving good value for money from suppliers begins with effective internal demand management is unilateral. The affection of the internal effective demand management is contained. However, other disposition, circumstance and social factors also have great influence on the good value of money. Such as the competition and effectiveness, the supplier behaviour and selection, the supplier’s availability, the extra costs, the possible privilege for quantity purchases, the aims of the procurement, even the environmental considerations and the costs for long term environmental, the location of the supplier.

In this paper, I from the supplier management and the impact factors of the good value for money to critically discuss the statement with some examples, finally emphasis the my opinion that the statement is not wrong but unilateral. The effective internal demand management not only the start point to achieve good value for money from suppliers, but also play an important role on the processing of achieve the good value for money .

 

 

 

 

 

Reference

Cox, A., Lonsdale, C., Watson, G. and Qiao, H. (2003) ‘Supplier Relationship Management: A Framework for Understanding Managerial Capacity and Constraints’, European Business Journal, 15 (3), pp135-145.

Cox, A (1999) Supply Chain Management: A Guide to Best Practice, London: Financial Times Pearson, pp.120.

The value for money analysis by the UK Treasury.

Watson, G., Lonsdale, C. (2003) ‘Thinking Strategically about Supply Chain Management’, in Waters, D. (ed), Global Logistics and Distribution Planning, 4th edition, London: Kogan Page, pp.104-116.


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