Organizationally, there are two significant parts to an organizational buying process: business planning and the buying organization’s buyer behavior. Business planning can start as soon as the process begins, when a company is developing a strategy or when it decides on which types of products to produce, what business models to use, which resources to buy, and so on. The goal is to get the company moving on its way to a profitable future.
The buying organization will create a strategic plan and determine what type of business will provide its customers. Some companies may include those that manufacture and distribute their products; some may focus on a particular market segment or product group, and others may sell to a customer group. Some businesses may have both internal and external customers, with some companies selling directly to customers, while others must rely on third parties for the bulk of their business sales.
In short, an organizational buying process will consider the factors related to the products and customers of the buying organization and the strategies used to promote the buying organization’s products and services.
From the buyer’s perspective, the buying organization must determine what type of purchase it will make, whether it will purchase directly from the seller or work with a third party. Suppose the buying organization has to do with a third party. In that case, the buying organization must consider the type of relationship it will have with that third party and the kind of relationship it wants with that third party. For example, a company might need to work with a third party to purchase new equipment, but the third party could become a competitor in the future. The third-party might want to buy a piece of the company’s current inventory for a specific price.
Type of Purchase
After determining what type of purchase it will make, the buying organization must decide what kind of people it needs to be in business.
This involves looking at the demographics and customer behaviors of the buying organization’s current customers to determine which type of people the company wants to work for it.
Once the purchasing organization identifies who it needs to buy from, it can decide which type of people it will hire.
Another critical role for the purchasing organization is determining how the company will conduct itself in the community after buying a new product or service.
There are several reasons why an organizational buying process might require the buying organization to work actively in the city after purchasing a product or service. One of these reasons is maintaining a positive public image and building relationships with other businesses and organizations.
An organizational buying process might require the buying organization to work actively in the community to build an effective supply chain. The supply chain will allow the buying organization to avoid wasting money and time or resources on materials and supplies that are not necessary to produce the product or service the organization sells.
The buying organization
The buying organization may also choose to work with suppliers in the community to help the organization avoid spending money on materials that are not essential to producing the product or service it wants to sell. The purchase of necessary supplies may mean working with suppliers in the area of the production site. It may require using suppliers in the size of the buying organization’s distribution center or hub.
The buying organization also must consider the impact it is having on the environment. When the buying organization deals with environmental issues, this can involve looking at the various methods of blogging used to reduce waste and minimize greenhouse gas emissions. It will be essential to work with suppliers who know how to do so, such as using recyclable material, building green buildings, using energy-efficient technology, and minimizing packaging.