Name: - Aastha Pallav Sub: - Business 2 Business (B2B) Assignment: - B2B Buying Process Submitted To: - Prof.

Maulik Thakkar

B 2 B Buying Process
What is B 2 B Buying Process?
B 2 B buying process is a process between the two organizations, where mainly 3 factors like Users, Influencers and Buyers are involved. In B 2 B buying process there are more people involved in the decision making process and the decision making process for B 2 B products is usually much longer than in B 2 C. In B 2B buying process, the company seeks long-term relationship with the supplier.

6 Steps of B 2 B Buying Process 1. Need Recognition

Normally every buying process begins with need recognition. The organizations will identify the specific need. It may happen that organization will identify the need in the year 1998-1999 itself for the year 2010. In the B 2 B, it cant be said that recognition will fulfill the need of that particular period only, it can be for the next year or years ahead or for the long time. For e.g.:- The organization is constructing one building in the year 2000. After the construction is in over in the year 2005, it may be in a need of 30-35 ACs.

2. Definition of Characteristics and Quantity

The users have to decide the characteristics and the quantity of products. It may happen that the buyer or financer may reject the specifications and quantity due to more than their budget, then the user has to make the changes in quantity and product specifications. For e.g.:- The user of the building may demand 40 ACs with all features and send this proposal to the accounts department. The accounts department may reject this proposal by stating that they have a fund for 20 ACs with limited features only.

3. Search for and qualification of supplier

The committee will search for the most suitable supplier for their product. This survey can be done by market research and through the web also.

4. Evaluation of proposals and supplier selection

Before evaluating any proposal the buyer can organize the biding process and in that process, such supplier will be selected whose bid is lowest or it case the bids of two suppliers get tie, the buyer will evaluate the proposals of both the suppliers. And will select the bid of such supplier which is found best by the committee as per its requirement and specification.

5. Selection of an order routine

After selecting a supplier the committee will do the negotiation with that selected supplier. Negotiation can be on price, warranty period and many other factors. The committee may demand extra benefits from the supplier e.g.:- maintenance contract, insurance of the product for certain period etc.

6. Performance Evaluation and feedback

The buyer periodically reviews the performance of the supplier. This may lead to the long-term and trustworthy relationship between the buyer and the supplier.