The specified requirements for this customer were a transactional exchange for the upgrade of their equipment to meet their predetermined specifications, and the proposal to be at the lowest cost. Buying Process When considering Northern Paper Inks buying process, this report will address customer purchasing decisions and behavior using the Buggery framework (Robinson et al, 1967) the analytical process by which customer’s decision making process is cross referenced with their buying situation in order to produce an accurate depiction of their purchasing behavior. This report will aim to demonstrate targeted purchasing decisions of our customer by incorporating specific criteria, needs and influences of Northern Paper Inc. Into the buggery framework of purchasing decisions.
In this case, the customer required an upgrade of the old product, as “ the existing control system was uneconomical to maintain” (Taylor 2012). Considering Page | 2 ten customer AAA n some experience AT product involved with its old equipment, the purchase situation can be considered a modified rebury. This buying situation omits certain stages in the organizational buying process .
Evaluate & select Supplier Select supplier who matched requirements most accurately, and assess any proposed changes suggested by suppliers Jason Lie Dan Reynolds Bob Mama Derrick Rogers Mr.. Jennings Wood-chip department Corporate Finance IGRP Boise Canada Ltd Dan Reynolds 5. Selection of Order Routine Finalize a contract between supplier and mill by agreeing upon all relevant terms % conditions Kepi’s, delivery times and implementation to be monitored at predetermined dates and reported. Price (5) On-time delivery (4. 5) 6. Performance Review Project Manager specifications being met.
Channel and Network Analysis This section aims to assess the performance of Boise in this case by analyzing the supply/demand chain, marketing channels and Network strategy of Boise in its communication with Northern Paper Inc. Supply/Demand Chain The Supply/Demand chain represents the process of production from raw materials to the product delivered to end users. Figure 2, supply/demand Chain product Raw Materials Flow of Information Flow of Production Hardware Development Boise design and installation of automated system Northern Paper use system In production AT paper Page | 4 The threat identified within the stipulated supply chain is the structured process of Poise’s upstream suppliers to deliver only premium products to Boise.
This structure of supply/demand does not allow for specifications from downstream customers to be met, in this case, the specifications of a low cost system could not be met as the raw materials, hardware and technology provided by upstream suppliers and Boise could not match the requirements of downstream customers. Marketing Channels This report has generated the Multi-channel integration Map to analyses the separate marketing channels employed by Boise in order to secure the Northern Paper Inc. Contract. This analysis refers to the channels as the various Boise employees involved in the process as individuals “ involved in the process of delivering products and services making them available for use or consumption”(Slouching et al, 2006).
Figure 3 Multi-channel Integration Map Sales Operation [Channel Rob Allison N/A Jenny Devour Dieter Hawse Victor Kormas N/A N/A Lead Generation Qualification Bid & Proposal Negotiation Re-bid Fulfillment Customer Support The Multi-channel Integration map highlights the relatively small channel length and breadth within the marketing channels. The heavy reliance upon one employee to accomplish a wide-range of sales progression objectives can result in under- performing marketing channels. The desired distribution tasks of channel management are not entirely met Walt tans system In place. Winless tans system may reduce complexity and transaction efficiency, it may diminish the quality of service and, as such, the increase of value.
Page | 5 Network Systems Figure 4 Automation System Inter-organizational Network Manufacturer Solution Provider Hardware suppliers System Integrators Rockwell Siemens Honeywell Boise Boise Automation Global Inc Toronto Office Money devour) Northern Paper Inc Figure 5 Relational Network, Boise to Northern Boise, Ontario Rob Allison Northern Paper Inc. Montreal Mr.. Jennings Boise, Toronto Jenny Devour Northern Paper Inc. Ontario Dan Reynolds Jason Lie Derrick Rogers Bob Mama Wood-chip Ops Corporate finance Page | 6 Boise Global, location unknown Dieter Hawse Victor Kormas The inter-organizational network highlights the competitive nature of the automation system market.
Walt suns a vast selection AT possible suppliers Walton ten market, It is imperative that Boise meet all customer requirements in order to secure contracts, in the case of Northern Paper Inc. Competitors were able to produce their product at a lower cost than Boise and therefore won the contract. The relational network between the two companies highlights a disjointed networking strategy between customer and supplier. Whilst Boise had four decision makers in the proposal process, only two of these members had any relation with Northern Paper Inc. Employees. This network breakdown can have an explanation in the communication efficiencies that ultimately affected the deal. Within the organization, it’s important to note the physical locations of employees within the Boise organizational network.
This distance between employees can also lead to the breakdown in communication and a lack of collaboration when devising the proposal. Recommendations In the assessment of the procedures followed by Boise in their marketing channels and supply chain, this report has tabled three recommendations in order to increase sales. Increased elasticity within supply chain In this case, Boise could not lower the price as their inputs in hardware and genealogy were too advanced. Boise need to pay closer attention to the demand of downstream customers within their demand/supply chain. By adhering to the demand of customers, upstream supply to Boise will be more customized to meet customer needs.
Centralized decision making unit A centralized proposal and supply team should be created to ensure collaborative teamwork throughout all sales and marketing processes. This centralization creates a stronger network between Boise employees themselves and with the customer, and avoids the situation in which members of the decision making process are unaware r not fully informed of all customer requirements. Lengthening Marketing Channels By lengthening Marketing channels to extend to more than one channel (Rob Allison), Boise will strengthen its position within its customer network as desired service outputs are being met more accurately for end-users. Age | 7 Supply Policy and Screening system If Boise choose to continue demanding high-end hardware and technology from upstream suppliers in order to gain competitive advantage, it is imperative to establish a consistent supply policy, outlining the criteria by which Boise will enter onto a proposal based upon price and specifications, this policy is to be supported by a screening process in which the proposal and customer specifications are first analyses Day ten central calicles making unit involvement in the proposal. To est. n ten plausibility In terms of delivering the highest quality product available, Boise has no peer within the automation systems market. The issues lie in customer insights, communication, marketing channels and network structure.
With the implementation of these recommendations, Boise may soon deliver not only the best product, but the best customer service through communication, structured network and accurate insights into end-users.
