PARTICIPANTS IN BUSINESS BUYING BEHAVIOUR

Buying center is a group of employees responsible for purchasing an item for the organization.

1. USERS Those people who use the product and or the services. E.g. engineers , technician , chemist , developers, workers 2. Influencers help define specifications and provide information for evaluating alternatives. E.g. senior manager , consultant. 3. Deciders have formal or informal power to select and approve final suppliers. This is the person who takes the final decision to purchase. Depending on the organizational structure & the corporate policies. e.g. factory manager , purchase manager , ceo.

4. Buyer: This is the person who is involved in the actual buying function & he will have to ensure that there is no disruption in production due to procurement problems. E.g. purchase or material department 5. Gatekeeper: He/she is a very important person who plays the critical role of flow of information in the organization for any procurement decision. E.g. clerk from accounts or purchase department.

is the business-to-business or business-to-consumer or business-to-government purchase and sale of supplies, work, and services through the Internet as well as other information and networking systems, such as electronic data interchange and enterprise resource planning.

FIELD OF USAGE
ELECTRONIC TENDERING HIRING B2B B2C

BUYING PROCESS
NEED IDENTIFICATION
PURCHASE ORDER PREP

FOLLOW-UP

SPECIFICATIONS
RECEIPT/INSCEPTION

SUPPLIER EVALUATION
PAYMENT

SUPPLIER SELECTION
RECORDS MANAGEMENT

BENEFITS
Cost effective Easy payment process Compare alternatives Increase supplier access Removal of intermediaries

E PROCUREMENT IN INDIA
Various studies have estimated that globally government procurement accounts for around 5-15% of the national GDP. The estimates for government procurement for India vary from 3.4% to 5.7% of the GDP. E.g. HAL , Indian railways. NIIT creator of procure easy software.

CHALLENGES
Work flow Pricing Maverick buying Developed v/s developing nations Telephone .

BUYING ONLINE

COSTUMERS LOGISTICS PAYMENT PRODUCT DELEVERY SHOPPING CART SYSTEM INFORMATION LOAD

ADVANTAGES Convenience Information and review Price and selection

DISADVANTAGES Fraud and security concern Lack of full cost disclosure Privacy Hand on inspection

 Leading producers in power systems , energy , airline , armed force , marine , turbines etc.. With $15billion sales annually Since 2003 used paper based transaction , labor intensive , prone errors , manual key entry , unauthorized buying , high inventory level . Had low value and high volume Adopted web based catalog ordering system by exostar

5000 100 suppliers Inventory level $44m $8.7m Lesser errors in transaction Elimination of paper and fax work Cost of obtaining goods decreased to 20% Saved $5m each year with suppliers , processing cost. Reduction in transaction time by 80%