1 Life as a Buyer. 2 Outline life of a buyer a purchasing manager of Dell Dell and Michael Dell sourcing components and finished goods for manufacturing.
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Life as a “Buyer” Life as a “Buyer”
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OutlineOutline
life of a buyer a purchasing manager of Dell
Dell and Michael Dell sourcing components and finished goods for manufacturing
a purchasing manager of a discount store sourcing goods to sell
a fashion buyer sourcing clothes to sell
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Dell and Michael DellDell and Michael Dell
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BackgroundBackground
development of the semi-conductor industry and the computer industry
early days 1950’s: mainframe big, heavy, expensive 60’s to 80’s: minicomputer
to suit the demand of a mid-range company gradually outdated by the development of PC
(microcomputers)
80’s onwards: microcomputer (PC)
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BackgroundBackground
commodizatoin of microprocessors in Early 70’s early 70’s: Intel 8008 8-bit processor (1972); Intel 8080 sold US$360 (1974
); Intel 8086 (1978)
development of PC needs of small business and home computers
1975: Micro Instrumentation Telemetry Systems MITS Altair 8800 Basic interpreter in Altair (Paul Allen and Bill Gates)
1976: Apple I by Steve Wozniak and Steve Jobs
1977: Apple II by Apple and Commodore PET by Commodore
1977: Spreadsheet VisiCalc and word processor Wordstar
1981: IBM PC, open architecture; MS-DOS by Microsoft, the standard operating sysetm of IBM-compatible PCs
1985: Windows operating system
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Selling Computers Selling Computers in Early 80sin Early 80s
selling through retailer chains
traditional make-to-stock mode in multi-echelon supply chains
manufacturers forecast demand, e.g.,
quarterly produce various models in
large quantity forecast and production in
rolling-horizon fashion
manufacturer
distributor distributor…
retailer retailer…
customers
retailer
retailer …
retailer
retailer
…
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Selling Computers Selling Computers in Early 80sin Early 80s
drawbacks of the traditional selling model intermediary
eats up margin
does not really understand computers
shields customer demands and market information from manufacturers
mis-match of demand and needs
holding inventory
easy obsolete products in a fast evolving market
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Dell Inc. and Dell Inc. and Michael Dell
selling direct without any intermediary
83: assembling computers in his dorm room customized IBM compatible computers
marketing practically by word of mouth
84: formed Dell orders through mail, phone, and (later fax) customized IBM
compatible PC
operations: assembly, software installation, testing, quality control, and repairing
revenue US$ 6 million
manufacturer
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Dell Inc. Dell Inc.
85: launched Dell’s first DC Turbo PC; revenue US$ 40 million
86: fastest 286-based PC
88: went public, though inexperience leading to tight cash flow and unsold inventory
89: too many computer chips, and plan to develop server dropped
90/91: also indirect sales 91: launching first notebook 92: encountering technical difficulty, especially in the
notebook market
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Dell Inc.Dell Inc.
93 canceling a series notebook development top five computer companies in the world the first quarter loss ever since
94: loss US$ 36 million; Lithium-ion battery notebook 95: rebounded, with profit US$ 149 million 96: Dell.com, selling through web 98: Xiamen, China 99: number 1 in PC (the third in 2012, after HP and Lenovo)
02: other products …..
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A Purchasing Manager of DellA Purchasing Manager of Dell
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Life of Mr.Life of Mr. 方國健 in Dellin Dell (1)0:00; (2) 3:15-6:05; 8:00-8:30; (3) 8:00-09:30(1)0:00; (2) 3:15-6:05; 8:00-8:30; (3) 8:00-09:30
life before Dell
early life in Dell one-man band, installing software, handing
correspondence, etc.
sourcing, quotation, sample mailing, etc.
company in progress office rental and personnel recruitment
selecting outsourcing partners
tour guide in site visits for overseas colleagues
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Life of Mr. Life of Mr. 方國健 in Dellin Dell
general work organizer of internal and external social functions screen, maintain, and manage, and develop suppliers
partner with suppliers and their quality engineers on product development
contract negotiation with suppliers especially on disputes, e.g., Inventec Corporation( 英業達 ) 、 Compal( 仁
寶 ) 、 Acer Inc. ( 宏基 ) 、 Twinhead International Corp ( 倫飛 ) on money spent on design, mould, and parts when Dell cancelled orders
market analysis and industry analysis on new products, new orders, competitors on problems in markets
ensuring operations matching company goals and objectives select regional distribution centers and sourcing regional
headquarters
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Qualities of Qualities of Mr.方國健
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A Purchasing Manager A Purchasing Manager for a Discount Storefor a Discount Store
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Purchasing for a Channel
identification of market trend, both short and long term interviewing suppliers to screen and negotiating with
suppliers to develop products judge quality, value and market potential of products
marketing activities of suppliers match with position of company
product assortment types, brands, and prices of products
maximization of revenue and profit balance profit and sales quota when necessary
consistency with company policy and objective inventory planning
2nd: 00:00:55 to 00:17
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Purchasing for a ChannelPurchasing for a Channel
material to be filled in …
4th: 00:03:43 to 00:07:10
4th: 00:12 to 00:22:27
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A Fashion BuyerA Fashion Buyer
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Life of a Fashion BuyerLife of a Fashion Buyer
fast fashion Next plc
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Life of a Fashion BuyerLife of a Fashion Buyer
generally responsible for a specific type of customers and of products, though affected by the size of a company small company: more variety, less involvement in design and
technical issues large company: more hierarchical, and finer division of products
travel to trade shows and to meet suppliers and designers qualities: versatile and flexible, from paperwork to
communication, from technical to artistic issues requirements: experience, qualification, enthusiasm, and
self-motivation
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Life of a Fashion BuyerLife of a Fashion Buyer
relationship with suppliers need good working relationship negotiate prices and delivery dates predict customer response, production cost, profit margin, etc.
interactions with merchandiser: more strategic level issues such as assortment and
budget of rate, set targets on time, margins, etc., and follow progress
design: design ideas, consistency within and across ranges quality control: buyer more on aesthetic issues and QC on
technical issues fabric technologist: sourcing the developing fabrics marketing and sales: …
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