Decision making unit consist of key people in the organization who make the final buying decision. We also refer this unit as buying center.
There could be several different decision makers involved in the purchasing process of S & C Latex.
DMU for Raw Latex
The following DMU for RAW latex as it is the most important item for the company, as it is the base material for each product and it could also be identified as the highest spending category (80% of the total spend) Therefore decisions taken at each stage of the purchasing process will have a huge impact on the final purchase of the material.
- Users: The users of this product would be first the production people within the company because if there is a low quality in the raw material there might be difficulties in the production line. Furthermore, end consumers of the product such as toy manufactures may receive market complaints. Therefore selecting the right supplier is important to keep the user satisfied.
- Influencers: Samples of the suppliers are tested and approved by the quality assurance department and they’re the ones who decide whether the supplier is approved or not. So, they have a great level of influence on the selecting the best supplier.
- Deciders: Although the purchasing officer may have selected certain suppliers ultimately the director will have to make the final decision & he s the one who signs off all the purchase requisition. Therefore the director is considered as the decider who ultimately has the authority to say what to purchase.
- Buyers: In this scenario the purchasing officer is the person who is involved in negotiating prices further selecting the well established suppliers. But, however doesn’t have decision making power therefore he s someone who arranges the transaction.
- Gatekeepers: There are no specific gatekeepers in this process however a buyer can be considered as a gatekeeper between the supplier and the director. As they are the ones who communicate critical information between two parties.
The following diagram represents the individuals of the decision making unit at each stage of the purchasing procedure.
