Transcript Life as a “Buyer” Outline  life of a buyer   a purchasing manager of Dell  Dell and Michael Dell  sourcing components and finished goods for.

Life as a “Buyer”
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Outline

life of a buyer


a purchasing manager of Dell
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Dell and Michael Dell
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sourcing components and finished goods for manufacturing
a purchasing manager of a discount store
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sourcing goods to sell
a fashion buyer
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sourcing clothes to sell
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Dell and Michael Dell
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Background
 development
of the semi-conductor industry
and the computer industry
 early
days
 1950’s:
 60’s
 to
mainframe  big, heavy, expensive
to 80’s: minicomputer
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outdated by the development of PC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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Background

commodizatoin of microprocessors in Early 70’s
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early 70’s: Intel 8008 8-bit processor (1972); Intel 8080 sold US$360
(1974); Intel 8086 (1978)
development of PC
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needs of small business and home computers
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1975: Micro Instrumentation Telemetry Systems MITS Altair 8800
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Basic interpreter in Altair (Paul Allen and Bill Gates)
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1976: Apple I by Steve Wozniak and Steve Jobs
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1977: Apple II by Apple and Commodore PET by Commodore
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1977: Spreadsheet VisiCalc and word processor Wordstar
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1981: IBM PC, open architecture; MS-DOS by Microsoft, the standard
operating sysetm of IBM-compatible PCs
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1985: Windows operating system
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…
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Selling Computers
in Early 80s
manufacturer
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selling through retailer
chains
…

traditional make-to-stock
mode in multi-echelon
supply chains

manufacturers
distributor
retailer
…
distributor
retailer

forecast demand, e.g.,
quarterly
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produce various models in
large quantity
retailer
retailer

customers
retailer
retailer
forecast and production in
rolling-horizon fashion
Selling Computers
in Early 80s
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drawbacks of the traditional selling model
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intermediary
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eats up margin
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does not really understand computers
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shields customer demands and market information from
manufacturers
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mis-match of demand and needs
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holding inventory
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easy obsolete products in a fast evolving market
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Dell Inc. and Michael Dell
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selling direct without any intermediary
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83: assembling computers in his dorm room
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customized IBM compatible computers
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marketing practically by word of mouth
manufacturer
84: formed Dell
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orders through mail, phone, and (later fax) customized IBM
compatible PC
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operations: assembly, software installation, testing, quality control,
and repairing
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revenue US$ 6 million
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Dell Inc.
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85: launched Dell’s first DC Turbo PC; revenue US$ 40
million
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86: fastest 286-based PC
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88: went public, though inexperience leading to tight cash
flow and unsold inventory
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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.
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93
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canceling a series notebook development
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top five computer companies in the world
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the first quarter loss ever since
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94: loss US$ 36 million; Lithium-ion battery notebook
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95: rebounded, with profit US$ 149 million
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96: Dell.com, selling through web
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98: Xiamen, China
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99: number 1 in PC (the third in 2012, after HP and Lenovo)
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02: other products
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…..
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A Purchasing Manager of Dell
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Life of Mr.方國健 in Dell
(1)0:00; (2) 3:15-6:05; 8:00-8:30; (3) 8:00-09:30
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life before Dell
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early life in Dell
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one-man band, installing software, handing
correspondence, etc.
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sourcing, quotation, sample mailing, etc.
company in progress
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office rental and personnel recruitment
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selecting outsourcing partners
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tour guide in site visits for overseas colleagues
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Life of Mr. 方國健 in Dell
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general work
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organizer of internal and external social functions
screen, maintain, and manage, and develop suppliers
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partner with suppliers and their quality engineers on product
development
contract negotiation with suppliers
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market analysis and industry analysis
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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
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 Mr.方國健
…
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A Purchasing Manager
for a Discount Store
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Purchasing for a Channel
2nd: 00:00:55 to 00:17
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identification of market trend, both short and long term
interviewing suppliers to screen and negotiating with
suppliers to develop products
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judge quality, value and market potential of products
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types, brands, and prices of products
maximization of revenue and profit
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match with position of company
product assortment
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marketing activities of suppliers
balance profit and sales quota when necessary
consistency with company policy and objective
inventory planning
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Purchasing 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 Buyer
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Life of a Fashion Buyer
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fast fashion
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Next plc
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Life of a Fashion Buyer
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generally responsible for a specific type of customers and
of products, though affected by the size of a company
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small company: more variety, less involvement in design and
technical issues
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large company: more hierarchical, and finer division of products
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travel to trade shows and to meet suppliers and designers
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qualities: versatile and flexible, from paperwork to
communication, from technical to artistic issues
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requirements: experience, qualification, enthusiasm, and
self-motivation
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Life of a Fashion Buyer
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relationship with suppliers
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need good working relationship
negotiate prices and delivery dates
predict customer response, production cost, profit margin, etc.
interactions with
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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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