Marketing Video Case 6

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Homework #3: Video Case 6 1. What is the role of the buying center at Trek? Who is likely to comprise the buying center in the decision to select a new supplier at Trek? The buying center at Trek is responsible for finding the best suppliers and vendors for the organization’s purchases. There is one manager in charge of the actual purchasing, buyers who identify domestic and international sources of materials and components, representatives from research and development, representatives from production, and representatives from quality control. Together this group of people makes up the buying center at Trek. The individuals in this cross-functional group share common goals, risk, and knowledge important to all purchase decisions for Trek. Making a decision to select a new supplier at Trek, the buying center is likely to include the purchasing manager, buyers who identify domestic and international sources of materials and components, and representatives from research and development, production, and quality control. All these individuals are vital to finding a supplier that is the perfect fit for Trek based on their four criteria- quality, delivery capabilities, price, and environmental impact. 2. What selection criteria does Trek utilize when it selects a new supplier or evaluates an existing supplier? When potential suppliers are identified, they are evaluated on four specific criteria- quality, delivery capabilities, price, and environmental impact of their production process. Trek was originally founded on the basis of the highest quality products, so quality is one of the main criteria that they look for in suppliers. Delivery capabilities are important because Trek needs to produce bicycles on a certain schedule and therefore need their supplier to consistently deliver parts. Price is an important criterion for obvious reasons; Trek wants to
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