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A modified rebuy is when a buyer wants to reorder a product or service but seeks changes to terms, prices, suppliers or product specifications. It is common for buyers to purchase many times using the same terms and supplier. A modified rebuy indicates the buyer is dissatisfied with the current situation or has new requirements. The following are illustrative examples of a modified rebuy.
TermsA procurement team begins to prefer FOB Destination terms and finds that most of their suppliers offer it. They stop reordering from their few remaining suppliers that require FOB Shipping Point terms. PricesA facilities manager reviews her opex budget and starts to question why they are spending so much on printer supplies. She requests the purchasing team to cut costs if possible. The team compares the cost of printer cartridges and finds their supplier is charging a premium over prices commonly available in stores. They push the supplier for lower prices.
SuppliersA purchasing team has 4 suppliers for maintenance consumables such as light bulbs. They find one of the suppliers offers lower prices, higher quality items and convenient ordering tools. They begin to shift more business towards this supplier and end several repurchases that were going to the other 3 suppliers.Product RequirementsAn airline has a strategy to offer more fresh fruit for breakfast meal service on several routes based on customer feedback. Their ordering of meals changes based on this requirement.
Product ChangesAn infrastructure maintenance team purchases the same light bulbs from the same supplier for 15 years. Suddenly the manufacturer discontinues the product model in favor of new energy efficient models. This forces the maintenance team to choose a new model. |
| Type | | | Definition | A buyer wants to reorder a product or service but seeks changes to terms, prices, suppliers or product specifications. | | Related Concepts | |
Procurement
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