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1、Module 6 purchasing power,Purchasing power,the number of goods/services that can be purchased with a unit of currency. For example, if you had taken one dollar to a store in the 1950s, you would have been able to buy a greater number of items than you would today, indicating that you would have had
2、a greater purchasing power in the 1950s.,Contents,1. Online trading,2. Managing suppliers,3. A contract to supply,4. Letter writing,Online trading,What does quality mean to you? Degree of goodness or worth General excellence Where does it come from?,According to Peter F. Drucker, quality is not the
3、superiority or degree of the goodness of a product or service. Quality depends largely on how the customer assess the product the use of it and the price etc.,Online trading (presentation),Suppose you are setting up an online trading business selling antique jewellery. Figure out the following quest
4、ions: What would be the important factors in making a success? (think about the description and illustration of the goods; delivery; payment; references / feedback; returns policy) How to promote your online store? What are the possible risks?,Online trading,The act of placing buy/sell orders for fi
5、nancial securities and/or currencies with the use of a brokerages internet-based proprietary trading platforms. The use of online trading increased dramatically in the mid- to late-90s with the introduction of affordable high-speed computers and internet connections. Stocks, bonds, options, futures
6、and currencies can all be traded online.,eBay,an online auction and shopping website in which people and businesses buy and sell a broad variety of goods and services worldwide. Founded in 1995, eBay is one of the notable success stories of the dot-com bubble; it is now a multi-billion dollar busine
7、ss with operations localized in over thirty countries.,Managing suppliers,Vocabulary Supply, deliver, transport, the supply chain order, stock, a defect, faulty, lead-time (from order to delivery),Useful Terms,In mint condition (完好无损): undamaged as if freshly minted. Lead time (订货至交货的时间): the period
8、 of time that it takes for goods to be delivered after someone has ordered them. E.g. Lead times on new equipment orders can run as long as three years.,Supplier management,A supplier is defined as a person or an organization that provides products or services to another business The terms that you
9、negotiate with your supplier need to be based on: The way that you pay them overdraft, commercial bill paid for by bank, foreign currency Potential costs administration, taxation, transport, general payments and transactions Possible risks late payments to supplier, or faulty, late or undelivered go
10、ods.,Managing Suppliers,Supplier management is best described as an ongoing process that minimizes the risks associated with purchasing goods, materials and services. Supplier management consists of three key elements: - Supplier selection. - Performance measurement. - Supplier relationships.,Suppli
11、er Selection,Once a company decides what inputs to purchase, it must choose the best vendors for its needs. To make this choice, production managers compare the quality, prices, dependability of delivery, and services offered by competing companies. Different suppliers may offer virtually identical
12、quality levels and prices, so the final decision often rests on factors such as the firms experience with each supplier, speed of delivery, warranties on purchases, and other services.,Supplier Selection,The Internet has given buyers powerful tools for finding and comparing suppliers. Buyers can log
13、 on to business exchanges to compare specifications, prices, and availability. Trade shows, conferences, and seminars enable managers to meet suppliers and others in their industry. Single supplier or multiple suppliers?,Performance Measurement,How long has the prospective supplier been in business?
14、 What is the suppliers record for on-time deliveries? Is the suppliers business quality assured? How does the suppliers pricing structure compare with competitors? What lead times does the supplier need for the supply of goods and services to your business? What capacity does the supplier have to me
15、et a rush order, should it arise? What payment terms does the supplier offer? What is the suppliers policy in relation to damaged goods or the supply of goods other than to specification?,(case study),Qualities of Suppliers: Companies who supply quality goods and services used by Motorola are eligib
16、le to become suppliers to Motorola. Successful candidates to become suppliers to Motorola will demonstrate the following qualities:,(case study),Qualities of Suppliers: Financial viability (survivability/creditability) High ethics Competitive in price Quality procedures and processes, ISO or other appropriate to the industry Cost reduction program,(case study),Qualities of Suppliers: Cycle time reduction program Programs of continuous improvement Offers a technolo
