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Retail: Purchasing & Supply Chain           Management   The retail buying process and    buying for different types of   ...
Learning objectivesAt the end of this session students should be able to• Describe the retail buying process• Understand r...
The retail buying process• Industrial/organisational buying behaviour (OBB) is  more complex than consumer buying behaviou...
The retail buying process• Who participates?• What happens?• What causes or influences a specific decision?               ...
The retail buying process              who participates?OBB theory discusses a ‘buying centre’ or ‘decisionmaking unit’ (D...
The retail buying process               What happens?A suggested staged process undertaken before a buyingdecision is made...
The retail buying processWhat causes or influences the OBB decision?                        Personal (buyer’s values &    ...
The retail buying process           organisational influences• Size• Product categories• Organisational culture• Organisat...
The retail buying process             interactional influences• Conflicts may exist in the buying centre / DMU (e.g.  buye...
Variations in the Buyer’s role‘The buyer may be responsible for the purchaseof a comparatively small range of merchandiseo...
The role of the Retail Buyer   The role of a buyer varies depending on the type of   organisation for which they are buyin...
Centralised / Decentralised BuyingThe benefit of having one buyer for the whole store is  that:  ‘consistency within the m...
Seminar• Exercise: desirable attributes of retail buyers• Reading: Varley cpt. 1
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Introduction to retail purchasing

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Introduction to retail purchasing

  1. 1. Retail: Purchasing & Supply Chain Management The retail buying process and buying for different types of retail organisation
  2. 2. Learning objectivesAt the end of this session students should be able to• Describe the retail buying process• Understand retail buying behaviour• Identify some issues involved in buying for different types of retail organisation
  3. 3. The retail buying process• Industrial/organisational buying behaviour (OBB) is more complex than consumer buying behaviour• Retail Buyers obtain items for direct resale• Retail buyers are intermediaries between producers & consumers (rarely adapt product)• Retail buyers need to understand consumer behaviour (motivation & decision-making)
  4. 4. The retail buying process• Who participates?• What happens?• What causes or influences a specific decision? (Tanner, Industrial Marketing Management,1999)
  5. 5. The retail buying process who participates?OBB theory discusses a ‘buying centre’ or ‘decisionmaking unit’ (DMU) comprising:• User – product is purchased on behalf of user• Influencer – a specialist who advises on the problem (e.g. technical, textile technologist, designer)• Decider – has responsibility to purchase• Buyer – involved in day to day activity (might also be the decider)• Gatekeeper – information on issues such as products or markets distributed via gatekeeper
  6. 6. The retail buying process What happens?A suggested staged process undertaken before a buyingdecision is made (the ‘buy-phases’)• Recognition of retail customer need• Write specification of product to satisfy need• Search for a supplier that can produce a product which meets specification• Choose supplier that meets supply requirements• Specify the order (time, quantity, delivery)• Evaluate performance of product and supplier
  7. 7. The retail buying processWhat causes or influences the OBB decision? Personal (buyer’s values & beliefs) Interactional including potential suppliers Organisational influences on the buyer Macro-environmental
  8. 8. The retail buying process organisational influences• Size• Product categories• Organisational culture• Organisational structure
  9. 9. The retail buying process interactional influences• Conflicts may exist in the buying centre / DMU (e.g. buyer v designer, differential status i.e. seniority of roles)• Buyer’s company and supplier
  10. 10. Variations in the Buyer’s role‘The buyer may be responsible for the purchaseof a comparatively small range of merchandiseor for several complete departments, dependingon the size and type of the retail organisation.’ (Source: Cox & Brittain)
  11. 11. The role of the Retail Buyer The role of a buyer varies depending on the type of organisation for which they are buying.In small companies the owner/manager is often responsible for purchasing, together with other aspects of the business (marketing, merchandising etc.)Larger companies will have a specialist team working in this area. The large companies with more diverse assortments are likely to have larger teams of buyers ensuring greater knowledge and control.
  12. 12. Centralised / Decentralised BuyingThe benefit of having one buyer for the whole store is that: ‘consistency within the merchandise mix will be maximised’The benefit of having a number of specialist buyers is that: ‘greater knowledge and control of merchandise can be developed and maintained’ (Source: Cox & Brittain)
  13. 13. Seminar• Exercise: desirable attributes of retail buyers• Reading: Varley cpt. 1

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