Straight Rebuy
This article covers meaning, importance & example of Straight Rebuy from marketing perspective.
What is Straight Rebuy?
A straight rebuy is the process to purchase or reorder supplies or goods on a routine basis from a supplier who is on an approved list. In straight buy, there are no changes required in the product or service or quantity. It is just reordering the same volume, type & quality of products from the same person or entity it was purchased earlier.
Importance of Straight Rebuy
In a straight rebuy, the suppliers make an effort to maintain product and service quality and automate reordering systems to save time. For a supplier to break into this system and capture more market, he has to offer something new or exploit dissatisfaction with a current supplier. He can get a small order and then enlarge their purchase share over time.
For any individual or company, there are three types of buying situations, which can be explained below.
- New Purchase: When a company wants to find a new vendor or wants to buy new set of goods, it is a new purchase. This is the most elaborate & time consuming process where a company has to identify a new vendor, check product quality, negotiate pricing, decide on volume, plan for delivery etc.
- Straight rebuy: This is a simple process where a repeat of the past order of goods is done again.
- Modified rebuy: In this process, a company or individual can ask to slight modifications to quality, quantity, schedule etc. to the earlier purchases.
The type of buying depends on the following factors.
- Complexity of the problem being solved.
- Newness of the buying requirement.
- Number of people involved.
- Time required.
Example of Straight Rebuy
A few examples are as follows.
1. An example for straight rebuy would be the purchase of office supplies or bulk chemicals. The order quantity and specifications are routine, and the purchase is made from the same competent supplier at regular intervals, without any decision making process.
2. In retail, a customer buying the same burger for the same quantity from the same restaurant every week is an example of straight rebuy.
Hence, this concludes the definition of Straight Rebuy along with its overview.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 1800 business concepts from 5 categories.
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