No.7壌
小売バイヤー組織の機能と顧客対応
伊藤 一
2001年5月
小樽商科大学商学部商学科
小売バイヤー組織の機能と顧客対応
伊藤
Customer Repose on Organiz段tion,s Fu獄ct藍on of
Ret翫il Buyer
C紐se s加dy on Large Ret紐iler iu J翫pan
e Intreductien
It was thought necessary to conduct some qualitative work to understand better the particular circumstances in Japan and how these might affect the buying process. In this DP interviews with retail buyers, chief buyers alld some executives of several Japanese retailers are reported. The main purpose in this DP is to analyse the organization of buyers and the function of the buyer. The DP also attempts to explain how business size might affect retail buying and product development.
1 CaseStudiesefJapaneseRetailers
Two types of retailer were targetea those who could claim to be "Nation wide"
retailers and "LocaP' retailers. A mixture of Super market retailers aRd convenience store retailers was also sougkt.
Tableg.1 Targetinginterviewcompanies
Super‑market&
store
Convenience Interviewrespondents
1ItoYokado HeadofPlaiminSector
2Seiyu SeniorBoard.CEO'
3Daie Chiefbuer
4Seven‑ElevenJa an cvs Chiefbuer
Large scale retailers tended to carry out buying in two stages: the first stage at the retailer's corporate headquarters, and another stage at their various regional headquarters.
Local retailers, however, do not have this two‑stage approach, buyers at a local retailer's headquarters making the fiRai buying decisions. In light of this difference with large‑scale retailers, local fetaileys were included as survey targets. The interviews concentrated on chief
buyers or personnel responsible fora number of buyers. ,
2 Case Study 1 ‑ Ito‑Yokado Co. Ltd
lto‑YokaDO Co. was founded in April 1958. In 1961, its founder Masatoshi Ito visited the U.S. and Europe to observe their distribution industries and upon his retum to Japan, he initiated the implementation of the chain store operation strategy. The company name was chaRged to Ito‑Yokado in June 1965.
The sixty one company Ito‑Yoka DO Group, led by Ito‑Yokado, is built around a core of distribution businesses. These include such major chains as Seven‑Eleven JapaR with more than 8,200 franchised stores nationwide, the Definy's Japalt restaurant chain, and Seven‑Eleven, Inc., with some 5,70e stores in North America and licensed outlets in nineteen natiolls and regions around the globe. The Ito‑Yoka DO Group's total fiscal 1999 sales exceeded 5,187 billion yen, a remarkable demollstration of sales capabilities that puts it in a class with the world's leading inultinationals.
The Group is committed to developing value‑added products that customers' want and achieving supply stability, supported by superior sales capabilities aRd a global network.
The company keeps abreast of {he latest informatioR so that they call offer customers new sources of satisfactioR day after day. Ito‑Yokado's missien is to supply customers with various attractive lifestyle options along with providing high quality goods at reasonable prices. Such a vast range of offerings to suit diverse lifestyles is only achieved by soliciting the services, technologies and goods to satisfy each customer's needs from a wide variety of sources.
Table.2 Per{'ormance o£I{o‑Yoka Do
1997 1998 1999 2000 2001
SALESIMILLIONJP 1546435 154759 1563339 1508911 1479826
PROFITIMILLIONJP 69645 70338 71203 51081 42094
EMPLOYEE 15086 15283 15908 16514 15862
Source: CompaRy Accounts
.2.1 Stra{egy
The major distinetive characteristic of today's consumer market is that customer demand converges on certain merchandise, and this merchaRdise remains in demand for only a short time before consumer preferences change. The Ito‑Yoka DO Group is consequently promoting "itein‑by‑item inventory control" whereby ePOS (electric Point of Sale) data are used daily te ascertain sales trends in detail for each item of merchandise. Through item‑by‑item control, the Ito‑Yoka DO Group investigates how customer needs change according to the time of day, the weather, aRd other factors. Next, !he company have formulated hypotheses about customer needs, en which basis ihey aajust the merchandise mix, alter displays, and develop Rew products. The company verifies the effectiveness of these moves once again using sales data. Thfough this cycle of hypothesizing, taking action, and verifying, the Ito‑Yoka DO Group gains a progressively clearer understanding of customer needs.
Allother characteristic of today's market is that when a popular item is sold out, customers are fiot satisfied with substitute merchandise. Consequently, a major factor impeding growth for retailers, in addition to losses from leftover and discarded merckandise, is Iost sales (oppor£unity losses) stemming from low inveRtories. Through item‑‑by‑item control, the Ito‑Yoka DO Group is striviRg £o eliminate such opportu"ity losses, through
timely restocking ofbrisk‑selling merchandise. '
The Ito‑Yoka DO Group focuses its effort in ks stores by providing customers with the va}ue they are seeking, analysing how the company ipteracts with customers and how to pTesent merchandise. In the Group's apparel and household‑goods departments, they are concretely expressing value within the context of daily life by, for example, displaying merchandise in coofdinated sets. In response to rising health consciousness and the increasing prevalence of single‑serviRg meals, the compalty has introduced counter service for fresh foods, enabling it to offer high‑quality merchandise ill the exact quantity {hat the customer W2MtS.
Unconstrained by conventional wisdom or past experience, the Group is aggressively
promoting merchandise to the customer. To of£er merchandise that meets customer needs at a
reasonable price, the company is promoting the concepts of "team MD (merchandising their
own brands)", "group MD", aRd "global MD". In teain MD, it carries oHt every stage of the
merchandising process, from product developmeRt to sales, while sharing information with
manufacturers aRd wholesaiers, among other collaborators. For example, in the
development of Ito‑Yoka DO's own brand of ?olo shirt, information was gathered from representatives from three compallies: a fabric maker,.a dyer, and a iextile designer who were collaborated with to develop the line of shirt.
Group MD takes advantage of the marketing abilities of the Ite‑Yoka DO Group as a whole to coittract with manufacturers and growers, thereby rationalizing the purchase of merchandise. Global MD utilizes the interitatioRal merchandisiRg networks of Wal‑Mart Stores, Inc., and the Metro Group to capitalize on product‑develepment prowess wherever it exists in the world for creating their double shop braRds.
Even within a single day, customer needs may change at any moment in response to factors as weather. In Ito‑Yokado stores, they use ePOS data in addition to item‑by‑item control to formulate hypotheses about the reiatioitship between merchaitdise sales and factors as the season, day of the week, weather, time of day, and local events. The company order merchandise based oR these hypotheses afid verit'ies theiT accuracy through actual sales. Using these marketing techniques, lto‑Yoka DO Group seek to develop a progressively clearer picture of customer needs and aim to zero in on customers' ever‑chaRging needs.
Ito‑Yoka DO Group also continuously tries to build individual items ot' merchandise into brisk sellers through aggressive marketing. For example, based on item‑by‑item control they adjust the sales fioor's layout, quantities o£ merchandise displayed, and planogram;
shelf‑space allotments, and strive to prevent inventory shortages. By adjusting the sales fioor in respoBse to such chaRges in needs, they intend to create stores where new diScoveries always await customers, even those who corne to the store frequently.
To accuTately convey merchandise "value" to the customer and create a store environment that rnakes shopping easy, the personnel involved in every stage £rom product deveiopmeBt to sales must share information about merchandise and marketing methods.
Their goal must be to create an operatioit as seamless as if a single person were doing both the purchasing and selling. Accordingly, Ito‑Yokado personnel directly exchaRge information at every organizatioital level, from daily communication on the sales fioor to Management Policy Explanation Meetings attended by executives from all Ito‑Yoka DO Group companies.
In addition, supervisors (SV) assigned to each merchandise sector serve as a direct
communication link between sales‑floor persomiel and corporate headquarters. Supervisors
provide new merchandise and market ioformatioR, as well as advice on matters related to
forrcuiating and verifyiRg marketing‑related hypotheses. The company believes that this
multi‑channel exchange of information imbses single "lntention" and works to create a store seerns to spontaneously call out to customers.
the merchandise and envirofiment in which
the the
sales tloor with a merchandise itself
.2.2 Organisatioit and FunctieR o{' Buying System
The buying operation is maBaged by Buyers, Distributors, and Supervisors. The position of Distributor was newly establisked in 1993 with the mandate of assortment planning for rebuying items according to outlet, and the presentation of plans to each outlet. Another objective was to allow buyers to focus on their trade, i.e. the smooth collection of product, production region, and product developmefit informatiofi.
Through the creation of the Distributor position, many o£ the Buyer's duties have been transferred. Originally, theBuyerundertookassortmentplanning(productcomposition,and item by item planning), and made adjustments for each outlet. With the establishmellt of the Distributor position, the formation and aajustment of product eomposiiion fell to thg Distribuior, allowing the buyer to concentra{e only on item‑by‑item p}aiming.
Figure .2 S{ructure iit Buying Depar{ment
Bu er
Shirt Suit & formal Pelo & sweaters Skirt & Pants Underwear
l ( I
Dis{ributor
i l
Distributor on Men's wear Distributor oit Ladies' VVear
l l
Su ervisor
A store B store C store D store E store F store G Store H store I store
The Buyer explains to the Distributor the reasons for buying or developing a product in the item‑by‑item plan. The Distributor then relays this information to a Supervisor, who in turn relays its content to each outlet. The Distributor receives feedback from the Supervisor in terms of sales ini'ormation. With this, the Distributor settles the product composition, setting out delivery time, volume, and product coinposition adjusted for each outlet. The Distributor and Supervisor carry out this kind information‑sharing on a weekly basis.
The Distributor uses the "vertical" itern‑by‑item plan formed by the Buyer it to decide on a "horizontal" product composition; in other words, the Distributor plays the role of a wholesaler in putting together the product mix. The role has become more important, while the ratio of buyers to Distributors was initially two to one, the nuinber of Distributors has iRcfeased such that now that ratio is one to two.
Table .3 Function ofBuyer, Dis{ributor afid Superviser
POSITION CONTENTOFWORKDECISIONMAKIN(iP'
Buer CollectinandanalsinOutsideinibrmation
Merchandisinroductdevelomentandnewbuinriceandvolume'
Proosingofhyolhesesonroductstrategy
Distributor DeliverofvolumetoeachstoreinroductrebuiR Arrallemento£timiRtodeliveritera.
Imrovementoforderinganddeliveringsystem Suervisor Exlaininuthereasonforbuintheroducts
Instfuctiononmanaineachitem.
Feedbackonin‑storeinformatiofitoBuyerandDistributor
.2.3 Cenclusion
While fundameRtally Ito‑Yoka DO has grown using a maltagement system adopted from successful firms outside Japan, mamagement know‑how was developed independently since being brought iRto Japan. When the parent co!xipany of 7‑11 Japan, Southerland, declared itself bankrupt Ito‑Yoka DO provided its owR management know‑how in turning the business arQund.
Ito‑Yoka DO uses a scientific management system based on the testing of hypotheses.
With its own product management as well, Ito‑Yoka DO is rare among Japanese firms in that, revolving aroufid item by item management using ePOS, it maximizes profit through the pursuit of added value as opposed to simply maximizing sales figures. In order to do this, cost eoncepts must be watched at the same time. To this end, Ito‑Yoka DO has moved beyond
simple cost concepts to including opportunity cost concepts in its maRagement.
In terms of buyer organization Ito‑Yoka DO employs a division of labour and is increasing specializatioR, which in turn contributes to product development. Particularly with the establishment of the Distributof position, the opportunities for Buyers to obtain specialized product information have increased. The successful development of pTodRcts under systeins such as "team merchandising" have beell realized through thisjob specialization. In terms of work content as well, Buyers have become able to coRcentrate oR buying.
.3 Case Study Z ‑‑ Daiei
Daiei employs a regional compaRy system. In Hokkaido, the company system involves only buyers afid no supervisors. Buyers handle compiaints and suggestions from stores manager.
These and their repiies are conveyed by way of the merchandising director to each buyer responsible for the correspondiRg area. Periodic meetings between store managers and buyers are also held to deal with various issues.
Table .4. Per{bermance ofDaie
1997 1998 1999 2000 2001
SALESIMILLIONJP 2505503 2470191 2342643 2204824 1980568
?ROFITIMILLIONJ? 591 ‑25828 1037 1147 2044
'gi:lls・t'i・'l"?1{..g'1)・"'}i}'l,'Sil
16686 16929 15603 13776 12505
Source: "1:1'"・r:・k?n・ iiE'gs ,tizcct'.):.;:,),c, :g
1 ..
Hokkaido's regional company organization consists of: 4 divisiops of soft goods (clothing & otheT textiles), 6 divisions of food and beverages (ineat, vegetables, fresh fish, daily aRd ready‑maid foods, beverages, fast food), and 4 divisions of hard goods (durable household goods). Each division is assigned 4 buyers who are in charge of no more tkalt 6,500 SKU's (store‑keeping units). In additioR, 15 people are assigned to a headquarters' mgrchandise plaiming division.
.3.l Buyer's Decision‑Making Process
In the buying decisiofi‑making process, the headquarters' plaiming division makes rough estimates regardiRg the type of items to be sold, item quantities, and delivery dates. A buying plan is theit determined after each regional coinpaRy's buyers submit stocking proposals that are based on their sales plan. Regional company buyers decide which local products to include in their inveittory and send in the product codes to the headquarters' merchandise plafining division. Perishable fresh foods (meats and fish) are mainiy purchased locally while most dry goods are not.
.3.2 Product Cutback (be{bre Delisting) and Colttact vvith Suppliers
Each regional company and each individual store handles product cutbacks. Delisting aRd cutback criteria are fiot based entirely on sales data. The balance o£ product selection and assortment is also considered, and even products that sell moderately well can be cut if similar products exist.
Ties with suppiiers are based on manufacturer and wholesaler associations, length o£
association, rebates, et cetera. The buyer must be sensitive to relationships with suppliers, as
well as maintaining fair trade practices by making periodic changes and adjustments.
.4 Case study 3 ‑ SEIYU
Seiyu was establislted in 1963 and by 2000 had 220 stores throughout Japan. Seiyu is the fifth‑}argest retailer in Japan and part of the SAISON group, a major retail, credit and development conglomerate. Besides operating a chain of Seiyu supermarkets, it rulls the Family Mart chain of convenience stores, "non‑brand" Mujirushi Ryohin stores and a number of other retail chains and services. Seiyu is aiming to use its extensive resources to turn itself into a new type of retailer in Japan. Seiyu will be acquired by WALMART of the U.S.A in the Sprlng of 2003.
Table .5 Performance en Seiyu
1997 1998 1999 2000 2001
SALES(IMILLIONJPY) 1004582 998141 952633 875369 832187
PROFIT(IMILLIONJPY) 8502 5654 10281 6341 6608
EMPLOYEE 8208 7924 7205 7062 5901
Source: Company Accoupts
Many ofJapall's supermarket chains have beeit placing strong emphasis on pricing in the past year or two, believing lower prices appeal most to consumers. Seiyu, oit the other hand, has concerned itself more with quality, believing value for money is ultimately more important than the cheapest prices. in that sense, Seiyu is almost going againstthe fiow, by moving up‑market rather than down. This will become increasingly obvious as the compaity develops new types of stores to satisfy the consumer who is moving away from famous‑brand goods but still looking for style and quality.
Long experience with "nofi‑‑braitd" Mujirushi Ryohin, Japan's first and most famous private brand with a strong emphasis on simplicity and ecological soundness, and the illcreasingly close‑working relationship vvith Seibu Department Stores give Seiyu strengths in product developmept at all Ievels. Most supermarket chains do not have strengths such as these.
4.1 Strategies tbr Future Growth
Seiyu sees itself as geing well beyonct its traditional supermarket chaiR image as i{ gives
real form to new concepts. As a developer, it is already working en US‑style sitopping centres.
ln small departmeilt stores Bnder the Seibu name it wi}l sell medium‑price, high‑quality products rather than the branded geods already prevalent. Seiyu has a scrap‑and‑build policy that will make land available for these new developments. The centres will be opened at the rate of one or two a year. One of the first, iR Kokura, Kyushu, will have US retailer Toys 'R' Us as an anchoi store. Seiyu is also creating a Rew type of store it calls a combination store, which combines the product mixes of a superinarket, drugstore and home centre. The first was opened in 1995.
Reducing operating and product costs is vital to survival and Seiyu is approaching this in a number・ of ways. Re‑engineeriRg workiRg processes is the aim of its T'Rainbow Plan" which uses advanced computer technology to streamline various systems and enhance communications.
Increasing the purchase of products from overseas is aitother major priority.
The revolution in the Japanese retail enviroRment in recent years has been far reaching, covering broad‑based deregulation, changes in distributlon, new concepts of retai}ing and changing consuiner perceptions. Changes of this scale have taken decades to achieve elsewhere, but in Japaneseretailing there is always something new. While it abolishes established ways of doing business, the new face of Japanese retailing is offering opportunities for innovators. But malty existing retailers are also being forced to go through a painful process of re‑engineering.
Many owners of such stores are dealing with the situation by converting their business into coRvenience stores or other types of franchises.
Technological advances increasingly will eRhance distribution processes and will assist manufacturers and retailers to provide the right product mix to consumers. Deregulation is likely to continue and affect other areas that ultimately will infiuence the retail sector. As the economic situation improves, the impetus for retailers to attract consumers will increase.
.5CaseStudy4‑ Seven‑EleyenJapan
Seven‑‑EIeven Japan is a company owned by the IY group. Although it wasn't the first in
Japan to open a convenience store, it is now the largest chain. It was £he fiTst company to use
ePOS data for merchandising, and the first convenience store chain to accept utility biH
payments, for example all public fairs payment. Seven‑Eleven Japan is the largest retailer in the
country for a variety of products iRcluding magazines, soft drinks, instant ramen Roodles and
sandwiches. The company has also managed founding regardless of the economic environment
to achieve continued annual growth smce R's
.S.1 Distinguishing features ef SeveR‑Eleyen
The company has always been an imaovator. Its introduction and rapid expansion of a computer network system in the rcid‑1970s enabled it to offer services such as utility bill paymeRts. Regular system overhauis and updates have kept Seven‑}lleveR Japan stores ahead of their competitors. For example, data collected through ePOS terminals are used to determine what is best for customers, and up to 70% of each store's products are changed over a oRe‑year period to keep customers interested.
The other main difference between Seven‑Eleven and its competitors is one, which has not yet been exploited: the scale of its intemational network. South}and International, the US parent company, is now owRed principally by Seven‑Eleven Japan and its Japanese parent, Ito‑Yoka Do. InternatioRally, there are more than 14,OOO Seven‑Eleven stores in twenty‑three countries. The potential forjoiRt purchasiRg and merchandising is great.
Table.6 Perfermance ofSeveR EIevek Japan
1997 1998 1999 2000 2oe1
SALES(IMILLIONJPY) 254617 277185 297993 327014 346917 PROFIT(IMILLIONJPY) 105151 112086 117240 140150 147158 EMPLOYEE(atFranchiser) 2718 3037 3350 3660 3820
Source: Company Accounts
.5.2 Strategies t'or Fukire Growth
With increasiAg discounting and the greater presence of private braRds, Seven‑EIeven
Japafi is adopting a different policy. The company is not interested in discountiRg as a strategic
tool. It also believes that, given the choice aBd the right price, consumers do prefer national brands to private braRds. So it is puttiRg particular e£fort into team merchandising, tying up with major manufacturers to develop products for sale in its stores. The scale is still small but success
already apparent. Seven‑Eleven is planning to expand the scale of existing business re}ationships, such as that with Parker Pen, and begiR new ones. The compaRy has begun work with Southland in the US onjoint efforts in merchandising and purchasing, and this is likely to expand to otheT countries.
Seven‑Eleven has stayed ahead of the competi!ion by making full use of techfiology afid paying close attefition to its customers. It has not been afraid to go against trends, such as that towards private brafids, looking for alternative solutiolls with equal or potentially greater appeal.
.6 SyRthesis o{" the 7 case studies
The characteristics of buyer organisation on scale and functions, product s!rategy, assortment plan, the relationship with suppliers, information system and the delisting rule were important aspects of each case. The differellt characteristics of nation‑wide retailers were especiallyapparent. Thefollowingdescribeshowthesecharacteristicsintluenceorganizations business strategies. Oil the other hand, local retailer traits are also apparent. The intrinsic buying characteristics of retail companies are more clear from aRalysing small scope, Iocal retailers rather than natioR‑wide companies.
In buyillg strategies, the characteristics of stocked products and the assortment of these products are important buying issues, suggesting three groups of product:
product for sales volume (top natiofial brand products), product for margin (own brand products which guaraRtee a high margin with low purchasing costs), and product for assortment (to attract customers). Decision‑making or rather the criteria of the retail buyer depends on the product group, margin oriepted criteria or sales oriented criteria. It cold be that the type of tayget infiuences the buyef's decisioA criteria.
Relationships with suppliefs were a significant factor. Suppliers not only provide retailers with pfoducts, but also serve as a provider of information about various products.
Since retailers also entrust suppliers to produce their own brand, the scale, technical standards,
and production capacity of suppliers are the primary factors that define these relationships.
When buyers build relatioBships with suppliers, they are, at the same time, deciding whether a supplier will be a long‑term busiBess partner or a short‑term partner for the sole purpose of generating profit. These decisions are affected by how much interest a retail company has in developing its ewn brand
Mally companies share electronic information. Beginning with the spread ot' systems, such as ePOS, the rapid transmission of information betweeR compafiies is developing through EOS and EDI. Through the accuTate analysis o£ enormous amounts o£ customer data, retail companies will notjust purchase products offered by suppliers, buMew product images will be evoked. For instances, the organizations of nation‑wide retailers are influenced by business behaviour strategy are exammed below.
7 Buyer'sOrganizationalStructllre,FunctioRandBuyingS{rategies
Considering the historical formation of the buyer's role in Japan, one can see a shit't towards division of fuRction, or rather, the dispersion of authority and specialization of work.
In the first chain store opefatioRs, a single person would be responsible for both buying and sales, and sales demand would be refiected in the next period's buying. However, as the concept of self‑service gained acceptance and more merchandise was offered threugh general retail businesses, the busiitess of buying took on a more independent form. Sales and buying duties were divided up between supervisors and buyers respectively. As the number of products offered through general retail businesses continued to increase, the buyer duties becafne more complicated. Time originally devoted to merchandise development and finding new products was lost. This brought oR a reform in the systern of organization for regular buying, re‑buying and new buying. In forward‑thinking businesses the distributor handled repurchasing and re‑buying orders and the buyer was in charge of buying ncw items.
Differences in company strategies have further transformed buyigg systems. It can be assumed that there are currently two methods of buying among retailers. The first, which is
employed by Ito Yokado (IY Type), focuses on product search and development.
Ito‑YokaDO's buying is supported by their adoption of a more functional approach, which as mentioned abeve divides buying into three parts. The opposing method, utilized by Daiei and most other retail business, is more inclusive and the buying department handles all
purchase‑related activities.
Table .10 categorises buying in terms of strategy, volume, control, and function &
system. Ito‑Yoka DO!s buying strategy emphasizes the collsumer's needs by devoting strategic resources towards buyifig high quality merchandise. This method can be expressed as product development buying where the buyer's activities are concentrated on finding itew merchandise.
Comparatively, Daiei and mQst other major retailers place emphasis oR costs and devote resources towards stocking merchandise at lower cost from suppliers. Accordingly, this method can be expTessed as transactiell‑centred buying. Major retailers give priority and devote more time to obtaining favourable transaction terms rather than focusing on merchandise selection. Moreover, in the case of new product introductions, manufacturers give delivery priority to the major ;etailers over local businesses due to their greater buyiRg power. In some illstances, delivery to local retailers of new meTchandise is not made or is significantly delayed.
For this reason, it is important to local retailers to buy from manufacturers or wholesalers who can be depeRded on to deliver the Recessary merchandise. It can be called this method supplier‑centred bBying.
In regard to buying volume, both major and local retailers buy in bu}k through their headquarters, the former having high volume aRd the iatter displaying intermediate volume.
As mentioned before, Ito Yoka do's buying is centralized and goods for all national stores are supplied through the headquarters. Daiei's regional company system is more decentralized and buying is divided into two stages. Headquarters negotiates the initial terms and buyers at the regional level negotiate the final buying details with the manufacturers. The headquarters of local retailers manage buyiltg and control is centralized. Ito‑Yokado's buying structure is divided into tlrree parts: BY (the buyer), DB (the distributor), and the SV (the supervisor).
This can be labelled as a "function divided system". The buyer is responsible for product development; the distributor determines volume; and the supervisor consults with the branch stores. Daieìs buying system is divided into two parts, BY and SV. This buying system caR bereferredtoas"'functionquasi‑dividedsystein". Comparedwitha"fufictioRdividedsystem"
the buyer's time is monopolized by volume decisions and other contract negotiations
consequently neglecting product development. In the case of local retailers, all buying
decisions are made by the buyer and can be referred to as a "function centralized system". In
the case of "function divided system" "function quasi‑divided system" and "function centralized
system" the responsibility for goods left unsold focuses on the individual. This results in a
tendency towards avoiding risk and increasingly basing purchase decisions solely on the
recommendations of the manufacturer and wholesalers, thereby resulting in increased retums.
Table 7 Organizatien Structure efBuyer Departments
?urchasingstrategy Buyingscale Authority Organisatien&
FunctioR
ItoYokaDo Productdeveiopment Largesize Divided Speciality orientedbuying
Concentrated BY・DB・SV
Daie TradecoRdition Largesize Divided Quasi‑speciality
orientedbuying
ConceRtrated (2stage) BY・SV
Local SupplierdevelopiRg Mediumsize Concentrated Generality Retailer orientedbuying
Concentrated BY
Note: BY: Buyer, DB: Distributor, SV: Supervisor
8 A type}ogy ofbuyer organisation
Even trorn seven case studies it becomes clear £hat the current situatioR in Japanese retail buyiitg is complicated. Because ofJapan's peculiar practice of complex commercial transactions, {he typical buyer can become extremely busy afid uRable to carry out his!her normal duties,
whichincludeproductdeveloprcent. Furthermore,thejobperformanceofabuyerina
decefltralized system is quite different compared to that of a buyer in a centralized system.
Two broad types of organisation could be identified, one focussed on negotiating prices and another broader role wheT¢ day to day matters were delegated ailowiBg the buyer to focus more on other tasks specifically new product sourcing. Where the buyer retained detailed tasks of stock aliocation to stores, the time devoted to product developmefit and to securing transac!ion terrns appeared insufficient because of !he complexity of the buyer's routine work.
Ito Yoka DO has a new product development policy and buying activities are concentrated on
finding products that sell. Other major retailers would have a transaction‑‑centred policy that
focusesnotonproductdevelopmentbutendevelopingfavourablebuyingterms. Theresulting
difference in dependency on extemal product selection (wholesalers and manufacturers)
explains the previously mentioned division in buyers' buying decisions.
Table 8 Relatiellship betweeR OrieRta{ion and Information Usage
Hiusaeefstereinformatien Lowusa,eonstorein{brmation NewProductDevelopment
OrientatedBuinPolic
SelectionbyIn{ernal Decision‑M[akin.
TradeCollditionOrientated BuyingPolicy
SelectionReliesoftExternal Decision‑M[aking
Moreover, the second system of buying is more conservative and might depend more upoil exterRal rather than intemal product selectioR. CoRversely, {he team system ef buying could result in rnore shared responsibility aitd greater risk tolerance. Regarding the use of information, the source and type of iniiormation should be examined. Market information on what products seil could be better absorbed in the first type of organisation, wheTe the buyer could be more iitvolved with future product development and product policies.
In UK retail businesses there is are examples of specialised professional organization that, created fof £he purpose of organizational buying. Marks & Spencer in U.K. is an example of an advancedretailer in terms o£ therole and function of organizationa! buying. Its products are 100% Own Brand; aild product development aRd buying are integrated. In a Mark &
SpeRcer's buying committee, the position of "selectorT' is respoitsible for product evaluatioR in the marketplace and suggesting to suppliers product designs that do not contradict its market position. The "merchandiser" is respoRsible for securing pre‑production raw materials from suppliers. This person ensures and ncgotiates product scope, size, and colour and decides on the package, seRt to stores. The "technologist" evaluates the special properties of raw materials and monitors thetechnical specificatioRs and method of manufacture at the production level. The "quality controller" determines and implements the product quality management system The buyer works closely with the buying committee in order to execute the decision making process.
However despite the diversky of organisational approach most if not all the retailers interviewed emphasised certain aspects decision making directly or indirectly. The most prominent was product quality, the secoRd price. Some emphasised low some emphasised
cempetitiveness based en quality.
9 CeRclusioR
Retail buying in Japan is trailiRg behind that in the West. In the UK characterized by strong buyiBg power in the hands of retailers and a high !eve} of concentration in retail and manufacturing leading retailers such as Marks and Spencer have divided their buying roles, have many buyers and make decisions on product developmeBt iBternally. Some Japanese retailers do the same, but most have relatively few buyers coficentrating on transactional activities. However the decision making process, such as could be identified in the case studies where managers were giving quite idealised pictures of what happened in their organisations, appeared to have some thiRgs in common including an emphasis oit quality and price that would probably be seen in any buying department globaliy.
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Social Efficiency and t建}e ,駁arkeも Revolution, 三漁 US Housing Fi益arΣce
G◎ver 皿ent 2x欝en(iiture a盆d the 塾alaRce Gf 2ay臓ents二8udge七 Deficit, Fin&nciaLI lnte暮ratio漁, and 奮co難。醗ic 童)iplo荘正acy A }}istory of P詠GC and Its 段〇三es
Dynamic Provision of Pu董)ユic 600(is as Environ田enしal Externaユities
A Co醗parative Static Analys三s of も鮭e 詠&lar}ced 霧udget
!r}cide澱ce i耳} the Presenee of Sector−S遷)eciぞic 口r}employmenも An Econof匪etric Study oま1 τrade Creatiorl and Trade Dlversユon 三員 the EEC,LAFTA arld C鍾ヨA:A Simple ApPlieati◎n of the (}favity }霊odel A 1}y熱a田ic }iode1 0{ Fiscal Reconst【・ucti◎n
The JaPεL籍ese 翼ay of Solving Fin&ncial Insもiもuもion Failures The Federal Ro玉e in Co醗醗し艮r三ity Deveユ。裏}nlent in tk}e り●S。
:奮VOlution VS. DeVO1疑もion
Rent−See}【三ng 藝ehavior in the 胃ar of Aももritio鷺
サハリン石油・ガス開発フ。ヨシ エクトと北海道経済の活性化第1号
購買部門の戦略性と企業間運携について
The Formaヒion of Custo醗s Unions and the 露f至ecも o員 (…ove卸r聖醗en七 正》01icy Objectives
τ1.}ε τraasition of 王)ostwar Asia−Pacific Tra(ie 段elat1o【}s
地域型ベンチャー支援システムの研究1一道内製造業系ベンチャー企業のケーススタディー
Laixun Zhao
Laixun Zhao Ju員一ichi 王taya
}{iroshi Shibuya TakILShi }{akahama
Yosbinori Akiya眠a Jun−ichi Itaya 良 1)avid de }ieza & 6a.reth D. }Iyles
Tosh重ka2二U 1}ξしte1wa Dwayne A. 駐a簸ks
Jane 栂。 D,Ar玉sta
Syn−ya I喩ura
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農 Dorene Isenberg 疑irosh1 Shibuya
C. Dav三d Gustafson T}oshihiro 亙hori
& Jun一圭chi 亙taya Iくoh Sumino
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Tosh玉hirG lhori & Jun−ic捻i Iもaya Osa田u 夏to Jane Kno(iell
Jun−ichi Itaya & }iiroyuki Sa員。
北東アジアーすハリン研究会 便藤 一
}{asahiro Erldoh
}iasahiro 琶融do}三
地域経済字土会システム研究会
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