Life as a “Buyer” Outline life of a buyer a purchasing manager of Dell Dell and Michael Dell sourcing components and finished goods for.
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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
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 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outdated by the development of PC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
early 70’s: Intel 8008 8-bit processor (1972); Intel 8080 sold US$360
(1974); Intel 8086 (1978)
development of PC
needs of small business and home computers
1975: Micro Instrumentation Telemetry Systems MITS Altair 8800
Basic interpreter in Altair (Paul Allen and Bill Gates)
1976: Apple I by Steve Wozniak and Steve Jobs
1977: Apple II by Apple and Commodore PET by Commodore
1977: Spreadsheet VisiCalc and word processor Wordstar
1981: IBM PC, open architecture; MS-DOS by Microsoft, the standard
operating sysetm of IBM-compatible PCs
1985: Windows operating system
…
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Selling Computers
in Early 80s
manufacturer
selling through retailer
chains
…
traditional make-to-stock
mode in multi-echelon
supply chains
manufacturers
distributor
retailer
…
distributor
retailer
forecast demand, e.g.,
quarterly
produce various models in
large quantity
retailer
retailer
customers
retailer
retailer
forecast and production in
rolling-horizon fashion
Selling Computers
in Early 80s
drawbacks of the traditional selling model
intermediary
eats up margin
does not really understand computers
shields customer demands and market information from
manufacturers
mis-match of demand and needs
holding inventory
easy obsolete products in a fast evolving market
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Dell Inc. and Michael Dell
selling direct without any intermediary
83: assembling computers in his dorm room
customized IBM compatible computers
marketing practically by word of mouth
manufacturer
84: formed Dell
orders through mail, phone, and (later fax) customized IBM
compatible PC
operations: assembly, software installation, testing, quality control,
and repairing
revenue US$ 6 million
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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.
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 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
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. 方國健 in 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
market analysis and industry analysis
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
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
types, brands, and prices of products
maximization of revenue and profit
match with position of company
product assortment
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
fast fashion
Next plc
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Life 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 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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