Trek Video Case

Topics: Logistics, Management, Production and manufacturing Pages: 2 (485 words) Published: October 4, 2012
1A) The role of a buying center is to find the best suppliers and vendors for the organization’s purchases. However, at Trek, buying centers make sure that purchasing managers are partnering with vendors who benefit the company. In addition, buying centers serve the role of confirming purchasing managers of the suppliers that do, in fact, meet the qualifications and standards set by Trek. They are a small team focused on negotiating prices that benefit both Trek and the supplier. 1B) At Trek, purchasing managers are most likely to comprise the buying center in a decision to select a new supplier. Sometimes, in important technical purchases, it will be representatives from research and development, production, and quality control. These individuals are the deciders who have formal/informal power to select or approve when a supplier should receive a contract. 2)

When potential suppliers at Trek are being identified, they are evaluated on four criteria- quality, delivery capabilities, price, and environmental impact of their production process. The focus on those four criteria allows the company to compare one supplier to another. Once a business is selected, it is continuously evaluated based on the elements of those four criteria. 3)

Trek’s interest in the environmental impact of its business influenced its organizational buying process immensely. When suppliers understand the impact a product has on the environment from start to finish, it draws companies such as Trek closer to finalizing a contract with them. The environmental impact influenced the organizational buying process of Trek because it helped seek opportunity for innovation and profit. For example, Trek bikes are becoming “smarter” by having electrical components that help them become a practical transportation alternative. In addition, Trek bikes are becoming “greener” by reducing the packaging size and weights whenever anything is sent out. By always seeking how to produce products that are...
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