Purchasing Orientation

of Business Customers
 Introduction
The buying firm’s purchasing efforts are
guided by of the following three orientations:

 Buying Orientation

Procurement Orientation

Supply Chain Management Orientation

 Buying Orientation
 Narrow and Short-term focus
 Lowest Price
 Gain Power
Commodification
Multi-sourcing
 Avoid Risk
Follow standard purchase procedure
Depend on earlier suppliers
 Procurement Orientation
 Long-term focus and proactive
 Main Focus on
 Quality improvement
 Cost reductions
 Collaborative relationships with major
suppliers
 Order processing
 Material Handling and
 Logistics
 Working closely with other functional areas
Procurement orientation
 SCM Orientation
 Coordination and integration of purchasing
function
 Within the company
 With other companies in the value chain
 Like customer’s customers
 Supplier’s suppliers etc.,

 Three important philosophies

 Value to end users
 Outsource non-core activities
 Support collaborative relationships with major
suppliers
Purchase orientation for Business
Customers
Thank you