Oulu Uni of Applied Sci:s – School of Business and Info Management
International Marketing – Ismo Koponen, Mr
Theme: 04) procurements i.e. managing supply chains;
To use vs to consume ?
To use is to use, but to consume is to use the product up (100%).
To buy, to purchase, and to procure; who does what (?), and reasons to:
- buyers are either individuals, or organizations; for consumption
- purchasers, too ! for consumption and for use in processes
- procurers are organizations, only. for consumption and for use in processes
Buying behaviour depends both on ability (purchasing power; money /
resources) and on will to purchase. Change in trends ? What makes buyers /
users happy ?
"Hard factors", that affect, buying behaviour are ...
money: incomes and savings and credits and real estate that can be sold for
cash.
"Soft factors" are ...
- the idea that something is cheap,
and we are saving
- Mr / Ms X also has this vs ...does not
(yet) has it
- needs (hard?), wants
- cultural factors
When you have made your choice, you do not have a choice, anymore (for a
period of time).
Because peoples' behaviour is unpredictable, foreseeing – and getting ready
– for a product's demand is difficult (cause and effect).
Buying behaviour in the Oulu Region,
in Finland, and globally (in HTEB) ?
About Oulu: 1) regional strategy for
developing industries and trade, 2)
geographical location, and 3) a "selfdeveloping" business environment.
These are factors that explain – to a
great deal – the competitive
advantage of the region of Oulu. How
do they affect buying and buying
behaviour ?
Organizations as buyers in HTEB ?
- Oulu town has, recently, acquired ...
Actors i.e.
Number of
Motives to
buyers
individual,
household
suppliers
buy
private
business
public i.e.
... because
local,
of EU
regional,
regulations
national, ...
Supply chain management problems
Supply chain management deals with the following problems:
Please, compare: Brands like Bertolli, Lavazza, ... in "Raksilan Marketit" vs
HTEB (components, software, ...), and e.g. Polar Electro vs HTEB, taking the
following viewing points:
1) Distribution Network Configuration: Number and location of suppliers,
production facilities, distribution centers, warehouses and customers.
2) Distribution Strategy: Centralized versus decentralized, direct shipment,
pull or push strategies (what are these?), third party logistics.
3) Information: Integrate systems and processes through the supply chain to
share valuable information, including demand signals, forecasts, inventory
and transportation etc.
4) Inventory Management: Quantity and location of inventory including raw
materials, work-in-process and finished goods.
Supply chain execution is managing and co ordinating the movement of
materials information and funds accross the supply chain. The flow is bi
directional.
The frame of the above was obtained from Wikipedia.
The two main concepts of Feb 1:st,
2007:
- VALUE; it should increase when it
"stops and goes" through the logistical
value chain; also when it stops, if
possible.
- EFFICIENCY; is the ratio between
the value (of e.g. goods, services, info,
and capital) at the beginning vs at the
end of the logistical value chain.
Example: 95E contains lots of energy,
but when it is converted into kinetical
energy in a motor car, very little (how
little?) is retained.
Example: a mobile phone has its price,
but the phone – and its price – has the
equivalent value (100%) only when / if
it reaches its end user. And this, in/on
time !
Supply chain management
"administers" (?) logistics, strategically
and tactically.
Logis (not logí, sorry) ! MOT gives
"yömaja" for the French word in
Finnish, and: "yömaja s night shelter, common lodging house, doss-house
(br)".