Published by MBA Skool Team, Last Updated: October 30, 2014
What is Straight Rebuy?
A straight rebuy is the purchasing or reordering of supplies on a routine basis from a supplier who is on an approved list.
There are three types of buying situations:
• Straight rebuy
• Modified rebuy
• New task
The type of buying depends on
• complexity of the problem being solved
• newness of the buying requirement
• number of people involved
• time required.
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.
Example: 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.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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