Chapter 5 Buyer-Distributor Relationships

Chapter 5 Buyer-Distributor Relationships PowerPoint PPT Presentation

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1. Competencies for Buyer-Distributor Relationships. Explain the intricacies of buyer-distributor relationships.Detail the ethical requirements and issues in buyer-distributor relationships.Describe the essential elements of the negotiation process between buyers and distributors. . 2. Relationshi

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Chapter 5 Buyer-Distributor Relationships

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2. 1 Competencies for Buyer-Distributor Relationships Explain the intricacies of buyer-distributor relationships. Detail the ethical requirements and issues in buyer-distributor relationships. Describe the essential elements of the negotiation process between buyers and distributors.

3. 2 Relationships in Purchasing Face-to-face Telephone Internet E-purchasing

4. 3 Evaluation Objectives Measure the extent to which current purchasing goals are being met. Improve the system in order to more effectively achieve future purchasing goals and enhance performance.

5. 4 Purchaser Ethics Adhere to all of the operation's policies and procedures in order to maximize goals and objectives. Seek optimal value for purchasing dollars spent. Comply with applicable laws. Ensure that the operation enjoys a reputation for fair and honest dealings with distributors.

6. 5 Potential Negotiation Pitfalls Unrealistic expectations for long-term pricing and supply guarantees Unrealistic expectations of volume to be purchased Unrealistic demands regarding delivery frequency or drop sizes Unrealistic timelines for RFP completion

7. 6 Purchaser Negotiation Power Position or status within the operation Distributor's perception of purchaser's authority Knowledge of the food service industry and food service operation Awareness of the competition Commitment to meeting obligations Willingness to establish long-term relationships Reputation for fairness and promptness in paying bills Economic factors

8. 7 Managing Concessions Attempt to have the other side make the first concession. Set negotiating goals very high. Avoid responding to a high demand with a counteroffer. Be aware of the economic and strategic consequences of concessions. Ensure that each concession received brings you closer to your negotiating goal. Recognize that all concessions should be tentative until you decide to make them final.

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