Investigation of Purchasing Applications After Digital Change in Industrial Markets

Investigation of Purchasing Applications After Digital Change in Industrial Markets

Ayla Avcı
DOI: 10.4018/978-1-6684-4153-4.ch004
OnDemand:
(Individual Chapters)
Available
$37.50
No Current Special Offers
TOTAL SAVINGS: $37.50

Abstract

In the constantly developing and changing global markets, the demands and demands of consumers also change. There have been changes in the industrial markets where too many products and services are bought and sold. World countries have become a common market thanks to the internet usage, which is widely used all over the world. The needs and wishes of consumers have also differentiated with cultural interaction. With the rapid increase in the online shopping method, internet shopping has started to rise with the fast and timely delivery options of the products. Demand for fast purchasing and product diversity have also increased in complex industrial markets where many people make purchases. Recently companies have entered the period of using online web pages in supplier selection. In this research, purchasing processes in industrial markets and new area digital transformation processes are examined.
Chapter Preview
Top

Introduction

When the markets are evaluated according to their activities those who buy products and services for their own needs form the seller’s markets those who buy goods and services for production purposes form the product market and those who buy and sell the products in order to resell them form the seller’s market. This markets can be added to regional, national, international and global markets (İslamoğlu, 2009).

People who are called sellers, consumers who buy raw materials, semifinished tools and equipment from other institutions in order to produce raw materials, semifinished products, goods and services for organizations and generally form and organizational structure are called industrial consumers. Industrial consumers earn a certain profit as a result of reselling the products, goods and services they have purchased or they create a new product they buy by evaluating them in the production processes. Industrial purchasing rates of small, medium and large enterprises and public institutions and organizations that are geographically distributed in various regions vary. Therefore, doing business with one or more of the industrial consumer is like selling the whole product. Industrial consumers to provide product benefits. They have expert knowledge about the technical features of the products. Since the relations in products purchases are based on trust hard bargains are made in purchasing transactions in these markets (Özdemir, 2006). Since continuous shopping gains more importance than a one-time purchase for businesses their interest in the consumer continues after the sale (Tengilimoğlu and Öztürk, 2011).

Organizations have people in charge of purchasing materials such as raw materials and semi-products (Tekin and Şenol, 2011). They are in the purchasing department of organizastions that buy a product or service. The number of employees in this role varies between 1 and 35. Increasing numbers of executives involved in larger and more important acquisitions (Bonoma, 2008). Purchasing unit employees are the center that coordinates with other departments. Members working in purchasing are required the obtain full approval from all units by cooperating with all departments in the organization from the R&D to logistics, in case a new products is developed or a new supplier joins. On the contrary, developing a product only in terms of cost or changing suppliers creates a disadvantageous situation contrary to what is expected. That’s why the concept of “looking at the total picture” which is frequently mentioned in business life, is important. Especially in the purchase of food based products this situation causes various problems. Effective units in the development of a product or supplier; marketing, purchasing, R&D, production, logistics and finance units. This situation takes place as purchasing other departments depending on product and supplier change (Aksoy, 2013). Therefore industrial buyers are in the purchasing center position (Can, 2016).

Purchasing is one of the primary responsibilities of companies. Firms rely on suppliers to produce products, good and services that meet the needs of their customers. Purchasing accounts for a significant percentage of firms financial expenditures. For example materials constitute 58% of industrial enterprises. Therefore that see the purchasing transactions have some important responsibilities. These (Demir and Gümüşoğlu, 2009):

  • Determining and evaluating the goods and service resources needed by the company.

  • Ensuring business relations with these resources on issues such as quality, delivery, payment, and product replacement.

  • Investigation and evaluation of potential resources such as new material product.

  • Purchasing the materials required fort eh company at the best price according to the quality requirements.

  • Conduct cost reduction programs value analysis buy or manufacture applications and market research.

  • Maintaining effective communication with interdepartmental and external suppliers and potential suppliers in the company.

  • Inform senior management about the cost of acquisitions in the firm, changes in the market that may affect the firm’s profit and market share.

Complete Chapter List

Search this Book:
Reset