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1、Module 6 Purchsing Power by Yang Zhou Online trading Managing suppliers A contract to supply Letter writing lead in What is purchasing power Purchasing power is the amount of goods or services that can be purchased with a unit of currency eg if you had taken 1 dollar to a store in the 1950s you woul
2、d have been able to buy a greater number of items than you would today indicating that you would have had a greater purchasing power in the 1950s What does the word quality mean to you degree of goodness or worth general excellence Where does it come from Quality in a product or service is not what
3、supplier puts in It is what the customer gets out and is willing to pay for A product is not quality because it is hard to make and costs a lot of money as manufacturers typically believe this is incompetence Customers pay only for what is of use to them and gives them value Nothing else constitutes
4、 quality Peter F Drucker Management guru According to Peter F Drucker quality is not the superiority or degree of a product or service Quality depends largely on how the customer assess the product that is the use of it and the price etc One important area that the consumer would like to perceive qu
5、ality of a product is their buying experience Peter F Drucker Nov 19 1909 Nov 11 2005 An Austrian born American management consultant educator and author whose writings contributed to the philosophical and practical foundations of the modern business corporation He was also a leader in the developme
6、nt of management education and he invented the concept known as management by objectives Discussion Descibe an impressive on line shopping experience and share with the class your feedback Points covered When was your latest shopping on line Which shopping website did you log on Did you buy anything
7、 If so what was it If you did not buy anything would you like to go shopping in the high street When you got the parcel from the delivery man how did you feel When you took the first sight of the product you bought on line how did you feel Was it up to your expectation Why and why not Did you have a
8、nything to complain about your shopping experience If so what was it If not what word would you like to use to describe your on line shopping experience this time On line shopping feedback 1 Thanks He paid very quickly 2 The item was well protected in the package when it was posted in and its condit
9、ion was as new 3 The transaction was done without wasting time or money and the item was delievered very quickly 4 The seller didn t send the item immediately 5 The transation took place without any problem 6 Not to be trusted or depended upon The item did not fit the description 7 The item has some
10、 surface damage 8 The goods were damaged in transportation 9 Be careful Seller didn t have the camera ready to send Feedback examples Managing suppliers Discuss the following questions 1 What factors does a company consider when choosing a supplier 2 What things can go wrong when supplying a company
11、 with materials or goods Your attitudes to suppliers Do the questionaire and compare your answers with your partner How the supermarket are squeezing their suppliers Discuss the two questions on page58 Big supermarkets delay their payments to their suppliers which affect the suppliers cash flow It i
12、s more of a problem for smaller suppliers because the larger suppliers also play this game with their own suppliers Solutions The goverment could legislate to fix terms between suppliers supermarkets The suppliers could form an alliance and threaten not to supply supermarkets they improve their paym
13、ent terms Suppliers consuners associations could generate bad publicity for the supermarkets about this situation Suppliers have to pay shelf placement fees to retailers for introducing new products to supermarket shelves pay fees to keep existing products on the shelf pay advertising or promotional allowances to supermarkets to advertise their products Big companies have market power over suppliers so suppliers have to pay many fees to them Big companies usu do not pay the money promptly for the materials or products to suppliers which may severely damage the cash flow of suppliers
