Describing the Requirement, Searching

for Information, Describing the Purchase,

and Evaluating the Process

Ahmed G. Mammah
Describing the Requirement

Unlike consumer buying behavior where it is only the individual making the decision, the
buying process in organizations involves many individuals. Therefore, each individual must
be clearly aligned on the requirements needed. After identifying what the organization
needs, product and services that satisfy this need have to be described in specific terms.
This will guide those making the purchase as to what exactly is required. For example, in the
halo-halo business, the requirement for canned evaporated milk can come with details like
preferred brand, can size, quantity, price range, nutritional facts, delivery schedule, and so
on. Once this is done, then it is time to proceed with the procurement.
Searching for Information

Now that the needs have been specified, the organization looks for solutions. This includes
searching for information to help evaluate the feasibility and accessibility of the
requirements defined. If the requirements are workable, then a search for suppliers to
fulfill the requirements begins. In the example, this will be distributors or retailers of
canned milk. All qualified suppliers will be asked for their proposal based on the
specifications given to them. Depending on the scale of work, the evaluation may include
gathering as much information about the supplier's organization, past work, range of
offerings, as well as negotiating for specifications, pricing, and terms of payment.
Deciding on the Purchase

Deciding on the Purchase. The proposals of qualified suppliers will be evaluated based on
conditions announced among participating suppliers. Criteria can be one or a combination
of lowest price, availability of preferred brand, high quality of goods, timely delivery, among
others. The organization then evaluates and awards the project based on the most feasible
and desirable proposal. The organization and supplier will sign off on a contract to finalize
the agreements.
Evaluating the Process

Once the requirements are delivered, and store operations proceed, the organization will
evaluate the business buying process to see if the steps are sufficient, if criteria for making
buying choices are met, if agreements based on discussion and the contract have been
fulfilled, and if the decision resulted in the most favorable outcome. Consumers and
business organizations go through a similar buying process of need identification, actual
purchase, and post-purchase evaluation. The difference is that for consumer buying there
is only the individual, influenced by internal and external forces, who makes the decision.
For organizations, the process involves individuals with different roles and therefore,
additional steps are needed to ensure alignment of goals among all participants.