MindMap Gallery Product purchasing channel selection strategy
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Product purchasing channel selection strategy
What is a product purchasing channel selection strategy?
Commodity procurement channel selection strategy refers to the method and plan for enterprises to select suitable procurement channels to obtain the required commodities based on their own needs and goals.
Factors affecting the choice of product procurement channels
type of enterprise
Different types of enterprises have different procurement needs and characteristics, and need to choose procurement channels that suit their business models.
Product nature
The attributes and characteristics of the goods determine the choice of procurement channels, such as whether they are perishable, whether they require special transportation, etc.
supplier reliability
The reliability of suppliers is crucial to the smooth progress of commodity procurement, and it is necessary to choose trustworthy suppliers to cooperate with.
Cost Control
The selection of procurement channels should consider cost factors, such as cargo transportation, taxes, etc., so that procurement costs can be effectively controlled.
Common commodity purchasing channel selection strategies
direct purchase
Cooperate directly with manufacturers or suppliers to reduce intermediate links.
Manufacturer: Negotiate procurement directly with the manufacturer to obtain lower prices and more flexibility.
Suppliers: Work directly with suppliers to easily track the supply chain and improve delivery speed and quality control.
Dealer Procurement
Reduce your own procurement risks and management costs by cooperating with dealers for procurement.
Large dealers: Cooperating with large dealers can gain economies of scale and increase purchasing power.
Regional dealers: Choose local dealers to cooperate to reduce logistics and regional risks and improve operational efficiency.
e-commerce purchasing
Use the Internet platform for procurement, which is convenient and efficient and breaks geographical restrictions.
B2B e-commerce platform: Choose a professional B2B e-commerce platform to conduct supplier screening and transactions to improve the efficiency of business cooperation.
B2C e-commerce platform: Use large-scale B2C platforms for purchasing, such as Amazon, JD.com, etc., which is convenient and fast.
Bidding
Select suitable suppliers for procurement by launching public tenders.
Bidding process: Develop bidding documents, conduct public bidding, evaluate bids, and select suitable suppliers for cooperation.
Bidding platform: Choose a trustworthy bidding platform to ensure fairness and transparency in the bidding process.
Advantages and Disadvantages of Product Procurement Channel Selection Strategy
Advantages of direct purchasing
Price advantage: You can negotiate directly with manufacturers or suppliers to obtain lower prices.
Flexibility: Working directly with manufacturers or suppliers, we can flexibly process and customize according to needs.
Disadvantages of Direct Purchasing
Transportation costs: You are responsible for the transportation of the goods yourself, and you need to bear the corresponding transportation costs and risks.
Time cost: Working directly with manufacturers or suppliers may require a greater investment of time and resources.
Advantages of dealer purchasing
Reduce risks: By cooperating with dealers, you can reduce your own procurement risks and management costs.
Resource integration: With the help of dealers’ platforms and channel networks, more resources and market opportunities can be obtained.
Disadvantages of Dealer Purchasing
Increased costs: Dealer procurement generally involves certain intermediate links, which increases procurement costs.
Real-time control: Working with distributors may result in less real-time control of the supply chain.
Advantages of e-commerce purchasing
Convenient and fast: Using the Internet platform, you can purchase anytime and anywhere, saving time and energy.
Diverse choices: There are many suppliers on the e-commerce platform offering a variety of product choices and competitive prices.
Disadvantages of e-commerce purchasing
Product quality: It is impossible to touch and inspect the goods directly, and there is uncertainty about quality and performance.
No face-to-face communication: The lack of face-to-face communication between the site and suppliers may lead to inconvenience in communication and problem handling.