university of economics in bratislava, slovak republic
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UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC. Business marketing – current topics impacting on sales and purchases in the company. Knowledge from practice . MARKETING/INTERNATIONAL ECONOMICS – UCL – JANUARY, 2014 LECTURER M ILAN ORESKY. - PowerPoint PPT PresentationTRANSCRIPT
UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC
BUSINESS MARKETING – CURRENT TOPICS IMPACTING ON SALES AND PURCHASES IN THE
COMPANY. KNOWLEDGE FROM PRACTICE.
MARKETING/INTERNATIONAL ECONOMICS – UCL – JANUARY, 2014
LECTURER MILAN ORESKY
UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC
BUSINESS MARKETING – CURRENT TOPICS IMPACTING ON SALE AND PURCHASES IN THE COMPANY
1. Intercompany relations and purchasing policy. Supply chains and networks.
2. E-SCM and E-procurement, E-reverse auctions
3. Customer relationship management – Supplier relationship management
UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC
4. New product development and ESI – early supplier involvement
5. Selling and buying at right price. Tendering
6. Contract negotiations
7. Capital investment purchases
UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC
1. Inter company relations and purchasing policy
Supply chains and networks
UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC
Logistics and Supply ChainsA Supply Chain is that network of organisations that are involved,
through upstream and downstream linkages, in the different processesand activities that produce value in the form of products and services
in the hands of the ultimate customer or consumer.
Can be classified according to:• Customer/supplier characteristics – concentrated, batch, retail
and distribution• Virtuality - information• Scope – international, regional, • Service• Complexity – direct, extended, ultimate• Products – end product (build to forecast, build to order)• Purpose and value
Types of Supply Chain
Supply Chain Management– Eight Processes
Customerrelationship
management
Product development& commercialisation
Supplier relationshipmanagement Manufacturing flow
management
Orderfulfillment
Demand management
Customer servicemanagement
Returnsmanagement
Quality of products and services
Balancing requirements with capabilities.... active influencing demand
Operations management, Quick response manufacturing
Company interaction with suppliers, short-term, long-term - intensity
Reverse logistics
Logistics and Supply Chains
Diversification – multiple sourcingStockpiling – inventory as a buffer
Redundancy – maintaining excess production, storage... Insurance – against losses
Supplier selection – more careful assessment of suppliers
Localised sourcing – shortening transport distancesRationalisation of the product range
Collaborative initiatives – spreading risksContractual obligation – imposing legal obligations
Supplier development – working closely with suppliers
Ten ways of Managing Supply Chain Risk1
2
3
4
5
6
7
8
9
10
Logistics and Supply Chains
Purchasing 55 – 65 %
Transport 3,5 – 7 %
Labor 2,5 – 6 %
Inventory 3 – 9 %
System and administration 1,5 – 3 %
Facilities 0,7 – 2 %
Range of expenditures as percentage of the sales
What is Purchasing?MARKETING STRUCTURE AND DEMAND
Business markets contain fewer but larger buyers.Business customers are more geographically concentrated.
Business buyer demand is derived from final consumer demand.
Demand in many business markets is more inelastic - not affected as much in the short run by price changes.
Demand in business markets fluctuates more, and more quickly.
What is Purchasing?NATURE OF THE BUYING UNIT
Business purchases involve more buyers.Business buying involves a more professional purchasing effort.
TYPES OF DECISIONS AND THE DECISION PROCESS
Business buyers usually face more complex buying decisions.The business buying process is more formalized.In business buying, buyers and sellers work more closely together and build close long-run relationships.
To select the best suppliers in the market. To help generate the effective development of new products. To protect the company’s cost structure. To maintain the correct quality/value balance. To monitor supply market trends. To negotiate effectively in order to work with suppliers who will
seek mutual benefit through economically superior performance. To adopt environmentally responsible supply management.
More specific objectives of buying unit
UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC
What is Purchasing?Purchasing and Change
Globalisation ImpactInformationTechnology
Impact
Chasing Production &Management
Philosophies Impact
• Transgression of national boundaries
• Advantage of cost
• Specialised labour skills
• Emerging economies
• Slicker transactions
• Quality of management data
• Strategic link with suppliers
• Paperless environment
• Competitive advantage
• Outsourcing
• Supply chain management
Supply networks
What is Purchasing?
Increase in strategic importanceAutomated tactical activities
Master contractsElectronic purchasing
Strategic purchasing competency centresShared supply chain resources
Profit contributionChanged emphasis on individual skills
Purchasing in the Future
The price/cost iceberg
Total acquisition costs and total cost of ownership
Structure and Supply Chains Seven Characteristics of New Type Organisations
RadicalDecentralisation
DemandingExpectations
DistributedLeadership
Networking &Reciprocity
IntenseInterdependence
TransparentPerformance
Standards
BoundaryBusting
„Small is beautiful“
+ multidisciplinary approaches
Leadership distributed among
people
Direct relationships and communication between individuals
“A network structure is a series of strategic alliances that anorganisation forms with suppliers, manufacturers and distributors
to produce and market a product.”
A network is not a world of individual and isolated transactions.
Network structures allow organisations to bring resources together on a long-term basis to reduce costs.
Networks relate to all aspects of the supply chain, including marketing and distribution.
Factors in Configuration
Structure and Supply Chains
First-tier Suppliers
Second-tier Suppliers
Those that integrate for direct supply to the assembler or who have a significant technicalinfluence on the assembly while supplying indirectly
Those that supply components tofirst-tier suppliers for integration into systems or provide some support service
UNIVERSITY OF ECONOMICS IN BRATISLAVA, SLOVAK REPUBLIC
Structure and Supply Chains
Convergent and divergent elements in a supply chain