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Published date Dec 24, 2018

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16-10-2014 (Markrting Managment Lecture 5th semester BBA)


Business Buying Process: the steps are following

1)      Problem Recognition: Purchasing is an important aspect of running a business, so it's imperative that businesses make decisions to buy products and services that will enhance their operations in some way. Before making a purchase decision, businesses must identify a true need/problem their company has. Often times, employees present their employers with needs while at other times, employers have to recognize a need after reviewing work flow and business goals.

2)      Develop Product Specification: detailed product specification often define in the business purchase. Developing product specification is typically done by buying center. Work with the purchasing team to develop a clear picture of the specifications for the product or service your company is planning to buy.These details can help the purchasing team identify items that fulfill the company's needs immediately versus researching options that don't fit the overall needs.

3)      Vendor identification & Qualification: Use the product specifications to search for viable options. Find vendors and suppliers who offer the product you're in search of. Take into account vendors you've worked with in the past, those who have sales or offer discounts to businesses like yours.

4)      Purposeless or Bids: then ask all the vendors that give the business there offers and sort out all bids and offers on the bases of cost & incentives.

5)      Selection of proposal/bit: Narrow your search and identify the best options for your business. Work with the purchasing team to identify the pros and cons of each option. Consider costs, features, maintenance, delivery times, payment options, and customer service and vendor reputation.

6)      Order processing: Determine how your company plans to pay for the purchase and identify the purchasing team member who can sign off on the purchase. Contact the vendor who provides the product you want to buy and make your purchase. The important points are following.

þ  Delivery Location, time & date.

þ  Invoice/ Billing

þ  Number of Items

þ  In case of return of defective good or other problems

7)      Vendor Performance: It's important to follow up on purchases to determine whether or not the purchase is working for your team. Get feedback on the purchase so that you know if changes need to be made to the specifications if the product or Services must be updated in the future.Important points are followings.

þ  Delivery Location, time & date.

þ  Checking defective good or services at the time of delivery

þ  Cost of goods or products

þ  Working efficiency and performance check

þ  Future maintenance by vendor and incentives


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