Purchasing and Sales - Exam

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pixez
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221788
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Purchasing and Sales - Exam
Updated:
2013-05-31 06:27:39
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Exam
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Business
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  1. Three different roles for purchasing.
    • 1. The Rationalisation Role
    • - Keep down direct and indirect costs
    • 2. The development Role
    • - Run development projects together with the supplier
    • 3. The Structure/Network Role
    • - Measures to increase, maintain or reduce the number of suppliers
  2. Purchasing Orientations
    • 1. Buying orientation
    • - Obtain best deals in terms of price, quality and availability
    • 2. Procurement orientation - improves productivity by; improving quality, reducing total costs
    • 3. Supply management orientation
    • - Focus all the firms efforts on delivering value to end customers
  3. Differences between Passive and Active Purchasing Department
    • The Passive
    • - wants to be contacted by the suppliers
    • - problems solving is handled solely by the supplier
    • - low costs for the purchasing department is sought for
    • - the supplier convinces the buyer that the given alternative is the best. The buying department answers yes or no to the offer.
    • The Active 
    • - seeks suppliers actively looking for the best resources available 
    • - creates solutions to problems together with the supplier
    • - cost efficiency it important but also the need for business development
    • - convinces the supplier that the firm an interesting partner to work with
  4. Scrutinizing Total Costs/Total Pocurement costs
    • Traditional Basic Input costs
    • +
    • Direct Transaction costs
    • +
    • Supplier Relational costs
    • +
    • Landed costs
    • +
    • Quality costs/factors
    • +
    • Operations logistics costs
    • =Total Procurement costs
  5. The Kraljic Matrix
    • 1.Leverage Items
    • 2.Strategic Items
    • 3.Bottleneck Items
    • 4.Non-critical(routine)
  6. Key Charasteristics of sales people desired by buyers
    • * Expertis in their company's products and the market
    • * Good communication skills
    • * Ability to solve problems 
    • * Ability to understand and satisfy the buyers needs
    • *Thoroughness
    • *Ability to help in ensuring the reliable and fast delivery of orders
  7. Key responsibilities of sales people
    • *Prospecting 
    • *Providing service
    • *Handling complaints
    • *Self-management
    • *Database and knowledge management
    • *Implementing sales and marketing strategies
  8. The Personal selling process
    The opening--->Need and problem identification--->Presentation and demonstration--->Dealing with objections--->Negotiation--->Closing the sale--->Follow up
  9. Complex VS "Simple Sales"
    • * Longer sales cycle 
    • Longer relationships
    • * Increased risk for mistakes
    • Bigger obligations for the customers
  10. AIDA - process
    • A = Awareness
    • I = Interest
    • D = Desire 
    • A = Action 
  11. S.P.I.N. - Model
    • S= Situation questions
    • P = Problem quesions
    • I = Implication questions
    • N = Need-payoff questions
  12. What is Access Strategies?
    Interest Centre -->Dissatisfaction Centre --> Power Centre
  13. Negotiations -  what is it and explain the process.
    • If two people must agree upon a common decision there will be a negotiation, both should feel like winners.
    • The process;
    • 1. Preparation phase
    • 2. Greeting phase
    • 3. Introduction phase
    • 4. Argumentation phase
    • 5. Compromise phase
    • 6. Closure phase
    • 7. Realization phase
    • Objections; 
    • 1. The best possible result
    • 2. A result that you would consider fair and just
    • 3. The worst result that you could accept

  14. BowTie and Diamond Tie relationship
    • Bow Tie - Limited to sales and buying
    • ><
    • s c

    • Diamond - Extended across all funktions at both organizations.
    • <>
    • s c
  15. The ARA- network model
    • Actors
    • Resources
    • Activities

    • Connected through;
    • - Actor bonds
    • - Resource ties
    • - Activity links
  16. Industrial Markets
    • * Fewer but larger buyers 
    • * Derived demand
    • * 4x the size of consumer market
    • * Professional buyers
    • * Complex buying decisions 
    • * More actors
    • *Geographical concentration
  17. Behaviour industrial markets; three kinds of situations
    • 1. Direct rebuy -  electricity, water etc
    • 2. Modified rebuy - cars, computers etc
    • 3. New task - new premise, bidgets etc
  18. Modern purchasing answers to three questions; More known as the strategic choices!
    • 1. Level of involvement with suppliers
    • 2. Configuration of supply base
    • 3. Scope of supply

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