ICT Impact on Purchasing Behavior

This assignment examines the impact of Information & Communication Technology (ICT) on consumer purchasing behavior, focusing specifically on non-life insurance products in Delhi NCR. It analyzes research studies and case examples to understand how ICT has revolutionized the purchasing process for these products. The assignment also considers factors influencing consumer adoption of ICT in purchasing decisions.

Running Head: PURCHASING MANAGEMENT 1
Purchasing management
Name
Institution
Date

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Purchasing Management
Introduction
The main purpose of this report is to analyze the effectiveness of purchasing management
aspects in purchasing management operations in the company or business organization. These
aspects include supplier selection criteria and issues relating to it, ICT aspect for purchasing
operations and purchasing cost analysis in an organization. There are various types of these
aspects in the business market operations but not all effectively lead to success, as a result the
report objective is to recommend the best criteria that can be used in the organization to enhance
success. The company to be used in this case is Coca-Cola Corporation which is a global
company (Mukhopadhyay, et al, 2016).
Coca-Cola is a beverage corporation that is globally represented with more than 500
types of beverage drinks that are non-alcoholic. The company was invented in the year 1886 in
Atlanta Georgia by John Pemberton. It has various sectors that function to enhancing its success
in the world of purchasing, production, marketing, and distribution. Among the various drinks
offered by the company to its customers are coffee, soft drinks, energy drinks, water, juices
among many others. The main objective of Coca-Cola Company is to be the best serving outlet
to provide best beverage products and services to its customers (Giannoumis, 2015).
Managing directors in over 200 countries worldwide have the roles to ensuring smooth
management activities in line with the company’s strategies and objectives in the beverage
market. Purchasing managers in all the companies’ outlets are well trained to ensure a smooth
and fair supplier selection criteria, with distinct ICT purchasing method that ensures all
purchasing goals are met. To enhance purchasing of the company’s product, the company has set
a strong digital platform where all their customers are able to give their views about the
company’s product. The target market is all age groups the company is doing well inline of
marketing and distribution (Weele, 2010).
Supplier selection criteria and issues of Coca-Cola Company
This is a process by which logistic supplier selection management is enhanced or carried
out in the company. Being a global company, Coca-Cola has set supplier guiding principles that
any individual looking for a contract to supply raw material relevant to its production activities,
should strictly adhere to the set principles. These principles give a simple outline of the

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company’s values and what they expect from their suppliers. The set values are lined with human
rights policies important in ensuring that all involved are respected as they also respect the
company. Since the company SGP (Supplier Guiding Principles) were established, collaboration
with the supplier partners has enhanced success in workplace rights assessments. The main goal
for the companies SGP is to ensure that all the suppliers’ requirements are maid according to law
and the set strategies and objectives. Suppliers should supply only what they are expected to by
the company and also in the right required position (Dejian, 2015).
Social responsibility criteria are what the company uses to select its suppliers. Being a
global company with various local outlets in the world, the need to acquire adequate raw material
is on a higher level. This is important in ensuring that the set supply and production goals are
met. Both local and international suppliers offer their services to the company (Sekaran &
Bougie, 2016). It’s formed on the basis of fairness and acquisition of human rights both at
workplaces and outside. An assessment of the appealing suppliers is done by the supplier
selection manager and his or her team following the SGP as required. Only those that meet the
requirements are lucky to offer their supplying services to the company. If any of the chosen
suppliers fail to implement the set principles, the supplier authority is expected to take corrective
measures or actions. In the same way that the company signs a contract with the supplier, it has a
right to terminate the contract if the supplier cannot uphold the supplier guide principles.
Recommendation
Coca-Cola is a corporation that is formed on the provision of services to its customers.
With more than one billion customers in the whole world, the products and services required are
extremely many. To ensure this products and services are always present for their customers, the
company should adopt delivery supplier selection criteria. This is a method where only those that
have been identified to deliver are chosen to sign the supplying contract with the company. This
is important to ensure that any required amount of supply into the company is readily available at
all times. The company’s supplying selection management should ensure that the rate and
procedures at which they choose their suppliers is the same as the rate of production and services
delivered to their customers. This is important to help ensure there are a steady supply and
distribution of the company’s product without wastage. It also enhances customer’s loyalty to the
company’s services as they are aware they can always get their services as they need it and at
any time.

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ICT for purchasing operations for Coca-Cola Company
This refers to information and communication technology means used by Coca-Cola
Company in its purchasing operations. Just like other existing multi-national companies, the
company has an aim to maximize its profits and also maintain a high level of sustainable growth
which is long lasting within the growing beverage industry. The company’s ICT for its
purchasing operations is database technology. This is an ICT purchasing operations technology
that provides time and accurate to purchasing operations of the company’s products involvement
important in enhancing strategic planning and other influencing tactical purchasing activities.
Database technology ensures that the activities involved can be controlled both externally and
internally with the internal purchasing side having the command (Shook Mei & Siohong, 2017).
The main purchasing goal for Coca-Cola Company is to have adequate products to
supply to their customers. Purchasing operations of the company ensure that a steady supply and
production of beverage products is maintained to help provide services to their customers. The
company has a relevant need to remain relevant in the market. Being a beverage corporation with
more than one billion customers in the whole world, the company has to ensure its set objectives
and goals are ensured at all times. Competition in the market enhances the development of the
competing parties with an aim of helping them to remain relevant in the marketing structure.
With a set mission to refreshing the world, a goal to inspire moment and a vision to create value
in the world and make a difference, the company is obliged to remain relevant in the market. The
purchasing operations management team has a role to ensuring that the goods supplied into the
company are relevant. They should support the set mission, vision and goals to enhance the
relevance of the company in the beverage marketing structure. ICT purchasing method in this
case database should as well be used relevantly to ensure that purchasing activities are in line
with the organizational set purchasing objectives and strategies (Kant, et al, 2010).
Recommendation
As a global corporation, the company should use e-commerce software system in its
operations activities. This is because the software is a buy-side software and can be used by all
company outlets important in helping the company maintain its operations pace. That is, using
this operations software in purchasing activities, the various departments and outlets can be able
to learn what’s right or wrong they are doing the same with other corporation counterparts. It
helps in ensuring that all operations activities are recorded and maintained or stored for future

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reference. The level at which Coca-Cola company, ensures purchasing operations power in all its
activities, enhances the level of which it remains relevant in the market. Supply can go wrong but
with the right purchasing method in place, it’s likely to identify the mistake and correct it
relevantly. Purchasing operations sector is very crucial in an organizations market operations.
Purchasing cost analysis for Coca-Cola Company
Purchasing is a crucial part of every business unit in the market with an aim of offering
services to make a profit. Fundamentals of cost analysis in every business unit are very crucial as
it allows assessment of all costs involved to help come up with a final price of the service offered
or the product sold. Purchasing cost analysis is the analysis of all the costs that have taken place
while acquiring that product to enable identify the last price of the service or product to be taken
out in the market (Regassa & Corradino, 2011). The actual cost is the first aspect of the analysis
in addition to other direct and indirect costs that are important in acquiring the product. Main
purchasing related goal of Coca-Cola Company is to remain cost effective while purchasing
goods from the market. The need to give products to the market using the best cost is to remain
significant and cost-effective while selling goods and services to their customers. In cases where
the company has an overstock of its products, the holding value or cost has to be evaluated with
the total cost of that product.
Sales of the same item to other purchasers is a method of purchase cost analysis that
Coca-Cola Corporation Company uses to determine the price of the end product taken out in the
market. This is a method that enhances the catalog used by the seller to buy a particular product
to influence its price to different people but at different times (Camarero Izquierdo, et al, 2015).
The price installed on that particular product can be verified with other customers who had
bought the same product earlier. This is usually noted to enhance ant notification of a change in
price. This method is not reliable to selling good and products that are fast in the market. The
corporation tends to use this mode of cost analysis with an aim of maintaining its customers.
There must be an earlier price to compare so that they can identify any change that may occur
while purchasing the products in the market. The cost-benefit tool is the most advocated for in
purchasing market (Rice, 2015).
Steps of purchasing cost analysis in Coca Cola Company

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These are the direct and indirect costs involved while producing the beverage products till it
reaches consumer market. They involve:
1. Price of raw materials analysis
2. Cost of production analysis
3. Marketing cost analysis
4. Cost of distribution involving transportation cost analysis
These steps of various cost analysis during production and distribution of the beverage products
gives the last price of the product in the market.
Recommendation
The company should use market price method of purchasing cost analysis. Competition
levels between the established and the establishing beverage companies are high. Example,
Coca-Cola Company has been experiencing increasing levels of competition from the Pepsi
Company. This is noticed with the average of the earlier input from the company sales and the
current seasons. Market price method ensures that the price at which the purchasing price is
arrived at is enhanced by the price in the market of that particular product. Competition is as a
result of increased products in the market with varying prices and different qualities. Many
beverage companies have high-quality products and the defining quantity on whether the input is
high is the price. Most of the customers in the market are not concerned with the quality but with
the price of the commodity or rather the product. Market price method ensures that the price of
other competing rivals does not vary to disadvantage the company.
Conclusion
Supplier selection criteria in every business are very important as it influences the basic
supplies getting in the organization for production. To enhance this, the supply management
team are coactively applying supplying principle guidelines effective for acquitting the best
supplier for the company like in the case of Coca-Cola Corporation. Information Technology is
very crucial for any organizational purchasing operations that are aimed at benefiting the
business. This is because it enhances the purchasing manager to understand all the followed
procedure and also keep count of the products getting in and out of the company as we as their
value. Purchasing cost analysis is very important to help understand the price in which the
product will be given in the market.

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The purchasing cost analysis involved in this case should enhance health and positive
competition in the market. Price of similar goods should not vary with high ranges as price tags
influences market more than quality. Purchasing operations in any business organization should
be positively enhanced to enable control of all activities relating to price, product, and people in
the market activities to enhancing product market development.

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References
Camarero Izquierdo, C., Garrido Samaniego, M. J., & San José Cabezudo, R. (2015). How
Strategic Purchasing Orientation and Transformational Leadership Impact Performance:
The Mediating Role of Information and Communication Technologies. Journal Of
Business-To-Business Marketing, 22(4), 269-292. doi:10.1080/1051712X.2015.1115701
Dejian, Y. (2015). Triangular Atanassov's intuitionistic fuzzy Bonferroni mean and application
to supplier selection. Journal Of Intelligent & Fuzzy Systems, 28(6), 2785-2791.
doi:10.3233/IFS-151557
Giannoumis, G. A. (2015). Transnational convergence of public procurement policy: a ‘bottom-
up’ analysis of policy networks and the international harmonisation of accessibility
standards for information and communication technology. International Review Of Law,
Computers & Technology, 29(2/3), 183-206. doi:10.1080/13600869.2015.1055662
Kant, G., Jacks, M. and Aantjes, C., 2010. Coca-Cola enterprises optimizes vehicle routes for
efficient product delivery. Interfaces, 38(1), pp.40-50.
Mukhopadhyay, D., Verma, R., & Mahajan, T. (2016). A Study of Revolution Marked by Ict in
Purchasing Behavior of Consumers for Non-Life Insurance Products in Delhi Ncr.
Journal Of The Insurance Institute Of India, 4(1), 75-81.
Regassa, H., & Corradino, L. (2011). Determining the value of the coca cola company -- a case
analysis. Journal Of The International Academy For Case Studies, 17(8), 79-86.
Rice, D. (2015). Public procurement as a means to achieving social gains – progress and
challenges in European legislation and standards for accessible information and
communication technology. International Review Of Law, Computers & Technology,
29(2/3), 162-182. doi:10.1080/13600869.2015.1055661
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach.
John Wiley & Sons.

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Shook Mei, C., & Siohong, T. (2017). Determinant factors of industrial purchasing personnel's
adoption of internet for business purchasing related activities. Logforum, 13(3), 285-299.
doi:10.17270/J.LOG.2017.3
Weele, A. J. (2010). Purchasing & supply chain management: Analysis, strategy, planning and
practice. Andover: Cengage Learning.