Purchasing Manager

You are Kim Bardy, the Purchasing Manager for Teknotronik, a European manufacturer of a range of consumer electronics and you wish to purchase a quantity of LEDs (light emitting diodes). You have arranged to meet Dave Sullivan, a sales executive of LaserLite, an American manufacturer of LEDs, in order to discuss your order.

Details Your Production Manager has informed you that he will require different quantities of LEDs (shown in the table below) and has given you a schedule for delivery dates. He has also indicated that he will probably need to re-order both blue and white LED's in the near future.

The target prices per LED that you would be prepared to pay are shown in the table below which also shows (as 'competitor's price') the prices that your company paid six months ago for LEDs bought from Electrotec, an Asian company. However, you were not satisfied with the quality, technology, and delivery times and are not repeating your order. You realise that it may be necessary to pay more for American LEDs which feature the latest technology. You would prefer to arrange for staggered delivery of the LEDs, receiving them in batches of 10,000 per month. Delivery would be FOB and invoices would be sent monthly. Conduct the negotiation and remember that, if you reach an agreement, you would prefer to arrange payment at 45 days.

Quantities

Delivery schedule

Blue White Red Green

20,000 30,000 50,000 50,000

urgent (10k within 3 weeks) within 3 months (10k within 4 weeks) quite urgent max 2 (total within 8 weeks) quite urgent max 2 (total within 12 weeks)

Target price per LED (prices in euros, FOB)

Blue White Red Green

7 (target price)

1.50

5 (competitor's price)

0.80

Дата добавления: 2015-11-14