Supplier search involves compiling a list of qualified suppliers
Proposal solicitation is the process of requesting proposals from qualified suppliers
Supplier selection is the process when the buying center creates a list of desired supplier attributes and negotiates with preferred suppliers for favorable terms and conditions
Order-routine specifications is the final order with the chosen supplier and lists all of the specifications and terms of the purchase
Performance review involves a critique of supplier performance to the purchase terms
E-Procurement
Online purchasing
Company-buying sites
Extranets
Advantages
Access to new suppliers
Lowers costs
Speeds order processing and delivery
Shares information
Sales
Service and support
Disadvantages
Can erode relationships as buyers search for new suppliers
Security
Institutional markets consist of hospitals, nursing homes, and prisons that provide goods and services to people in their care
Characteristics
Low budgets
“Captive” audience
Government markets
tend to favor domestic suppliers and require suppliers to submit bids and normally award to the lowest bidder
Affected by environmental factors
Non-economic factors considered
Minority suppliers
Depressed suppliers
Small businesses