Eskilerden-Markette Satınalma -Purchasing In Market

         Üniversite yıllarımda  -10 yıl önce- hazırladığım yiyecek-içecek alanında satınalma üzerine hazırladığım ödev aklıma geldi ve yayınlamak istedim. İngilizce olarak hazırlamak zorundaydık. Bu ödev ve final sınavı ile dersi geçmiştim.Bazı baş harflerden sonra nokta konmuştur. Marka ve özel isimler kapatılmıştır.
-10 Years ago-I made during my university years in the field of food and beverage purchases I made on the assignment and wanted to publish.I had to prepare in the English language. Some brand names and private names are closed.

                              GENERAL INFORMATION

C....... local hipper market has established in 1988 in Ankara C....... family. C....... hipper market is a family company. The owners of company are K....C.... and A.... C.... The first C........Market is established in 1988 in Etlik with the 280 meter square market. C....... Company starts to open the other market since 1990.  The general manager of C........ Company is N..... Ö....... There are 1210 people working in C...... Company. Totally, C....... Company has 45.000-meter squares marketing place. C....... Company has 7.000-meter squares store in the food wholesalers place. And also they are 1.850-meter squares cold air store in the food wholesalers place. They have 31 market sections in Ankara. C....... Company general building with the center store is 13.000-meter squares in the other part of food wholesalers place. In their 31-market section they have 225 cash storage. Moreover, 3 of them are hipper market. In their store they have 32 kantars and also 380 electronic scales. For their customers they have 27 buses to give service to take away them to their home. C....... Company has 18 company cars and also they have 24 trucks for logistics to serve their market sections.In their trucks they have radio.

The interviewed had being done with the purchasing manager of C.......Company about purchasing system and C.......’s Company mission his ideas about marketing. His name is E..... A......

1.                  What is your name?

              My name is E.... A.......

2.      Mister A......., when is your birthday and where is your birthplace?

I was born in 1956. I was born in Y.....

3.      Mister A....., are you marrying and do you have a child?

Yes, I am marrying and I have two children. One of my children is going high school, the other one is going to university.

4.      Mister A......, which university did you graduate?

I graduated from Bursa Education Faculty Mathematician Department.

5.      Mister A......, when and where did you start your business life?

Firstly, I was starting my business life in Ankara. I established my own business. I was selling the breakfast equipment. Such as, packet honey, packet margarine and their materials. Then I moved to Izmir in 1976 and I was starting to sell construction equipments with my friend. After, Izmir between 1985-1989 in Ankara, I was working in S.......... Vakfi  to a general manager. After, S....... between 1989-1992 in Ankara, I was working in K.......... Vakfi to a general manager. Then, I was working between in Ankara; I was working in B....... Market to a purchasing manager. Then I was appointed from B....... Market to the other company of  B....... to E.... Market to a purchasing manager assistant.

6.      Mister A......, when did you start your business life in C....... Hipper Market?

I was starting in1999 in September.

7.      Mister A......,  what are the differences from starting date in C....... Company till now?

Naturally, there are lots of differences are being in C....... Hipper Market. Firstly, the purchasing power is increased. It is increased 3 times. C........Company, was market now C........ is hipper market. Our little small markets now they are being department-stored market. Totally, C....... Hipper Market is selling 35.800 products. And also C....... Hipper Market is starting to sell Non-food products. These are home textiles products, electronic equipments, stationery equipments; cosmetics, furniture, hardware equipments, home equipment and also we are selling light equipments.

8.      Mister A......, where are you buying your products?

We take our products from importers, manufactures and distributors. However, generally we take our product from the manufacturers. For instance, some products like Coke we take from C.... C..... Company. We are not taking from distributors. If you work internationally

You can reach number of markets. This is called local chain market system.        The other products  are  U....., P......& G..... we are taking from    distributor, we are taking  H..... from H..... Company, we are taking Bavit chicken products from B...... Company, we are taking K..... Chicken and meat products from K.....Company, K...Pazarlama Company, we are taking A.... products from A.... Company, we are taking E........ Health  products  from  E.........Company, H.... Chemical Company, O.....  Company.

9.      Mister A......, what are C...... Hipper Market target people when you are selling your products?

C........ Hipper Market targets are, customers generally who have high - income middle and middle-high people. Because of our location markets and our storages.

10.  Mister A......, what is the quality of C........ Hipper Market products?

             Our all products have TSE standard document. Also our own products, which we are producing, have TSE standard document.

11.  Mister A........, how do you communicate your market sections or how do you deliver your products?

We two deliver system to our sections. Firstly, we have cold selling. We collect the products in our center store then deliver from to our market sections. The second system is hot selling. Manufacturers or distributors to the sections deliver the products.

12.  Mister A......., how do you decide to procure the products?

Some products such as food have extended dates. We put these products into storage or put on to shelves until the extend dates or we can say like that we have to sell the product in determined day. For instance, cosmetics, hygiene products such as detergents, soaps these extend date of product is 15 days. Food extend date is 7 days. This called stock period momentum. We have sell amount system. Extra period + shelf stock + amount = order amount.

13.  Mister A......., what is shelf stock?

Shelf stock is; the product must be seen on the shelves. For instance; in market system the food products must be finished in 7 days. So you should give order to your manufacturers or distributors to procure the products before 7 days   thus you accelerate bring period of the company. Moreover, you account of bring period of company. This is called extra period. If you do not account the extra period you can lose money and your customers. Since, if the shelves stock is finished because it must be seen on the shelves you can be stock out. As, the customers want to see the product on the shelves.

14.  Mister A......, if you do not like the quality of your product after bought the product what do you? Do you give back?

             Generally, we have not any problem like that. Since, our control system of quality is very well. If there is a problem like that we communicate with the company which we have problem; we give the product back or change another product. And also if your relationships are well there is not any problem, you can solve the problem easily.

15.  Mister A......, how do you pay your product cost?

             We pay with the EFT with the bank channel. May be it is being long because of the work date.

            Note: EFT system is; you have account in any bank and you transfer the money the customer’s account to another bank

16.  Mister A......, how do you choose your manufacturer or your distributor when you decide to buy a new product?

I said that before our customers generally who have high - income middle and middle - high people. Furthermore, we sell our suitable products for target customers and we separate our market sections to income and culture. Since, some products are very expensive. For example, ecologic products are very expensive so we sell these products our some market sections. And also, we choose our products from our customers need and wants. We choose the companies from the advertisements, from the televisions, from the newspapers. Some presenters are coming before 10 days which product will they get out the market to present us and then I argue with my assistants get decide to buy this product or not to buy.

17.  Mister A......, what are your tasks and your assistant tasks?

My assistant tasks are; they talk with the company they learn the products of identitie.And they get knowledge about the products and then they tell me the products of identities then we argue each other and comparison with the other product, which it is the competitor of the product that we decide. If we do not decide to buy we talk with general manager that we decide to buy or not to buy. For instance, we have some seasonable products such as green olive and natural cheese. We decide to buy green olive and natural product talking with general manager because these are seasonable product we can define the amount of these products. However, cosmetic products are bought at the need time because it is sold much we can get more income from cosmetic products.

18.  Mister A......, what do you do when you buy missing product?

           I said that before we have two-order type. One the order type is cold selling. Firstly, the product is coming our central storage then the product is gone to the market sections. Secondly, the manufacturers and the distributors are bringing the product to the market sections. We enter the amount of product both to the computer of accounting department and to the computer of purchasing department. The computers control it automatically if it is anything missing at that time we order again. For example, we give the products number.12^th number of product is missing or out of date we make invoice for give back or we exchange with the other product.

19.  Mister A......, if any manufacturers or any distributors upset your trust what do you do in this situation?

            There is a manufacturer or distributor you can never work with them but there is   manufacturer or distributor you must work. If they upset our trust we punish them or warn them.

20.  Mister A......, are there any   competitors to take any advice or do you take any advice from them?

                        It is impossible because we make trade the competition is very much. . Moreover, the inflation of Turkey effects this situation. On the other hand, the hipper markets create their own brand thus the profit increases. Due to this, nobody help each other. Because, we make more profit with our own brand. We put the cost to our own brand what we want but the other product, which we do not produce, we do not put them cost what we want.

21.  Mister A......, how do you define the products of promotions?

Because of the Turkish economy we decrease the products of cost. However, we sometimes tie the product to another product. For instance, like 2 + 1 or 3 + 1. This means if you buy 2 two products one is free or if you buy 3 products one is free. For example, we give our customers one fourth gold with L..... Tea. Moreover, in C........ Hipper Market does  lottery of Hyundai. If our customers buy Persil detergent they enter the lottery. In spring   we give detergents with another product because spring means cleaning. However, to attractive the product we decreases the cost of product. Furthermore, we started to new promotion its name is Week of Stars. Every week we decrease the cost of some products. And also on Tuesday and on Thursday we make sale day because in the weekend the hipper markets make high profit we pull this on Tuesday and on Thursday.

22.  Mister A......, if any staff make mistake about the amount of product or give a wrong order what do you do in this situation?

              Everybody can make a mistake but sometimes we notice at the beginning or in the end but we notice when control the computers in the accounting department or purchasing department. If our staff makes mistake we warn them or if the manufacturer or the distributor make mistake they correct their mistake.

23.  Mister A......., where do the staffs make the mistakes?

The mistake is made generally when our staffs are writing the cost of product to the computers. But we notice and we correct the mistake suddenly. However, there is not any fault when we give or order because we follow from the computers.

24.  Mister A......, do you buy the requirements of your company?

Yes, the purchasing department of C....... Hipper Market is required the need of company.

Such as, stationery equipments or cleaning equipments.

25.  Mister Aktoplu, do you negotiate with any security company?

No, we own security our center building and also in our storages.

26.  Mister A......, how can you define the requirements?

Every department tells their requirements and we buy.

27.  Mister A......, when you procurement a new product does you cares with customers of demands?

Yes, we care with the customers of demand. We make questionnaire and we decide to buy what they want or what they do not want.

28.  Mister A......, where are you produced your own brand and where you are produced your own brand?

We choose the big companies. Since, the customers want to see who produced the product. Moreover, we give permission from the Health Ministry of Turkey and Agriculture Ministry of Turkey. We make agreement the company, which will produce our brand with the channel of notary public.

29.  Mister A......, how many assistants do you have?

I have 5 assistants for communicate with the companies.

30.      Mister A......, the progress beginning with foreign retailers that had become in 1990 has accelerated development of retails in Turkey. What do you think about the Retail in Turkey?

As local retailers, we have benefited and learned from investments            which foreign retailers have made for this sector. Turkey is now beginner position of competiton compared with others. However, today, it is necessary to make investments depending on the technology and we believe that the labor has the first priority. It is clear that the importance of financial and logistic support when foreign investors come to the country. When we consider Turkey’s circumstance , I think it is inevitable that facilities provided for foreign will be also provided for Turkey’s investors. This sector, will continue to invest for Turkey. The growth of sector opening now large store is trying to get slice of the big cake. The volume of retailer sector is about 50 million dollars. But, Turkey have about 5-6 millions. It means the national retailer chain in Turkey has not yet got its portion. Shortly, Turkey will be looking for new leaders for retailer sector. While that, we are planning to reach our objectives.

31.  Mister A......, what are the difficulties of being in the same competiton with foreign investors?

Of course there are some difficulties in business for us as a local company. The main disadvantages of this is attitudes of suppliers to local companies and the form of suppliers as family companies. There is a real problem that the suppliers in Turkey don’t distribute the product (good and services) in the same condition of others. The last crisis in Turkey affects firms decisions depending on dacts changing economics and politics in Turkey and in the World firm and companies need a leader who can adapt to any condition easily. They should also manage the firms with the isochronal success. We are focusing on being local , not the difficulties being in the same competiton.

32.  Mister A......, according to a point of view in a globalize economy it is more important that innovation what do you think about this aspect for retail?

                 Retail is like an art that need initiative and skills. CEO of Coca Cola    Roberto Goizuet says, “our job is big and wide but we try to act with the initiative, skills and impulse of small retailers”. We also agree with this and try to prove the advantages of being local. The success of new C....... Hipper Market should be evaluated in this way. The main advantages of C....... Hipper Market is delicatessen, fruit, vegetables productions that need special buying skills. For this reason, we can sell these products with a cheaper price. The professional experts do these jobs. The personals of C........ Hipper Market whom knows the public and customers’value have the big portions of our success. We focus on the relationship. It is important for us that costumers’ value the main advantage of being local is that we feel the global changes very cole and give response very quickly.

33.  Mister A......, economical crisis affect all sectors. How does retail sector with this problem or what should it do?

I have a suggestion that I developed for Turkey crisis have two dimestions as physical and psychological. The psychological one has been overlooked. There is just economical crisis in Turkey. There is human being crisis. There are some work for economical crisis but I believe that we can suppress this crisis with love. We are all responsible for this crisis. Gorvernment must support modern retails. The laws should encourage retails not prevent them. In Chinese, they use two words for crisis, danger and opportunity. Danger can be seen by everyone but opportunity is for special ones.

34.  Mister A......., in your opinion, which ones are more affected by economical crisis, national or local retailers? Which one will be less damaged at the end of the crisis?

All of them are damaged. The main crisis is that the power of buying is reduced. Both gib and small firms feel this. As C........Hipper Market, we follow the losses of buying power. There are some works for this problem. Increasing the number of brand under the name of C...... Hipper Market, we show the public, we are less affected. We hard work on quality product to give them with out advertisement. As I said before, crisis is an opportunity time. We go on our investments and entrepreneurships to grow up during crisis time. The organizations that are less affected by crisis can be the ones that follow what customer need and want, we believe.

35.  Mister A......., in Turkey, profit by exchange and interest is more attractive. The retailers consider also incomes with out actions more. In your opinion, when will this system be locked?

Actually, the actions have already been changed. The focus of economy depends on consumption. The consumption is parallel to income. The amount of money that society have been decreased. This is because nothing will be the same as before. The new era has been begun in this conditon that even biggest retailers talk about the loss. It is necessary to shift out from theory to practice.

36. Mister A......., what is the significant problems of retailer in Turkey? Do you have any suggestion for solution?

There are lots of problem in this sector. To summurize as short heading, the lack of qualified personnel, the markets in small place because of crowded city environment, the proportion of credit cards comissions that banks act over us and some policies, the disorder of work time, undifined competiton that can be tax smuggling, increase of electiricity and social security premium prices, can be said. We believe that the rules of competitor environment must be obeyed and this can be helpful for being away from crisis. Monopolistic regime on certain product damage this sector. Free competiton will reflect to consumers.

37.       Mister A......, how many years has C......... Hipper Market been in sector since?

Professionally, we have been leadership of this sector in Ankara since 1987. For this reason, K.... C..... represents the retailers in Ankara Ticaret Odası.

38.  Mister A......, what is the role of C...... Hipper Market in the devlelopment of local retailer?

As well as C....... Hipper Market is a local retailer, it has also taken place in international retailer chain and has become the specimen for the sector. It is in the list of the biggest organization of Turkey in number of 51 and the best seller of Turkey in number of 8.

39.  Mister A......., many organizations prefer to be sold to national or international organizations. They think that they make more profit.Do you have any plan about this?

Recently, a few important organizations joined with us. this will go on in 3-4 years I think. As C....... Hipper Market group, the main target is not profit. I don’t think organizations that target juct money will be successful. Our mission consist of providing job opportunity and quality and cheap product. When the organizations think like us, the society will be pleased.

40.  Mister A......., many national and international retailer defense that the local retailers wil be disappear. What do you think about this idea?

As I said before, we see the reatil as a art. The retailer which understand the customers’ value will always exist in this world. Many international organizations like C... C..., increase the local advertisiments. McD...... add their menus Ayran when they enter Turkey market. As a result, globalizing world need localization. Consumer needs and wants have been such a privatized that it became localizaiton without globalization. Shortly, think globally, act locally.

41.  Mister A......., your international and national competitors has done very innovation. The retailers has entered the electronic trading. How do you follow this developments?

We have a group that follows the electronic business. We, now, consider human factor first. People see shopping as enjoyment even in economic crisis. In Turkey, which using computer and Internet is very low, electronic business is prestige for organizations. We have already prepared and completed the substructures. But consumer demand determines when it is in action.

42.       Mister A......., especially retailers that wants loyal costumers give the card sevices. Do you have any card service? In your opinion, are costumers regular with cards or how can they be regular?

C....... Club Card is for rewarding our customers. But this economical situation affected the regular customers. They prefer now  quality and low price points. Only a card does not provide regular costumers I think. We see the issue as whole and try to cummunicate creates emotionally. Because, small smile cause regular costumers and they can change their mind.

43.  Mister A......., what do you think about Turkish retail in the future?

Although it is very dificult to talk about future in this term, I can say tat Turkish retail will be medator sector sith young and dynamic population structure. The foreign retail company has also effect. It should not be forgotten that foreign investments will not enter the place that do not organize their retail investment, shopping sector will go on I think. I also believe that in the future, Turkey reach the variety of products in the western.

44.  Mister A......., what do you think about C.......'s Hipper Market future? What do you imagine about C........ Hipper Market?

I believe that, it will be in the position that it deserves. We are reaching the goals we targeted, contemporary retail and chain leadership. I imagine C....... Hipper Market that gives job opportunity to thousands of people, invest millions of dollars, and we have this power. I can say that we live in the country where is very difficult to invest. There are still problems of Turkey attracting foreign investment. We are here for the public in Turkey, where electricity price, social security premiums are very high. We are dealing with competition tha foreign investments terminate in Turkey. So, we have some expectations from government. Instead of putting the big markets out of the city with law, I think it is necessary that government should arrange the open and close time of these markets.

Especially, keeping markets in city center close on Sunday very useful for both personnel and small groceries. The other subject is to sell the goods under the production cost. It can be prevented by laws. Because of this consumer and retailers will be happy and the competiton will be legal.

45.  Mister A....... , what is C........ Hipper Market’s endorsement in 2002?

In 2002 C....... Hipper Market’s endorsement is 100 million dolars.

46.  Mister A.......,  has  C....... Hipper Market any abroad investment?

 Yes, now we have C....’s Gmbh Company in Germany and there is a general manager is working there. Our target is at the end of 2002 import-export shopping. And also we make investment about water and mineral water. We produce water and mineral water by own and moreover we want to buy market chains in Germany.

47.  Mister A......., Where is C........’s Hipper Market biggest market?

Canerler’s Hipper Market biggest market is in Batikent. It has 5 thousand meter square closed place. It is opened in November 1999. It has 24 cashiers. Place and time is important for market concept. In our system we have both 5 hundreds meter square and 10 thousand meter square hipper markets.

48.  Mister A......., Does C........ Hipper Market enter to Stock House?

                We are thinking but it is to early to enter Stock House and also we have not any problem in our managing system but in the future entering Stock House will be done

49.  Mister A........, what do you think about the grocery’s and distributor’s

future and what do you want to say about this?

 In my opinion, the decreases of groceries reflect to the distributors. Since, holding markets are taking products through the channels of distributor. On the other hand, if the groceries get together their power they live in the market.

50.  Mister A......., C...... Hipper Market has any corporation with any company?

Yes, C.......  Hipper Market has corporation with T..... Company. Because of the economic situations we get together our power and we increase our energy. One year ago T..... had 9 markets and now T.... had 20 markets. We saw the benefits of business married. C....... Hipper Market and T..... are happy form this married. On the other hand, at the same time marriage has easy side and difficult side. Everybody is not marrying easily.

51.  Mister A......., is it easy to find market place for establishing for C.......Hipper Market?

No, because of the economic problems there a big demand to the big building and places very fast. Minimum 3 or 4 marketers demand to these places and also Ankara is not an empty place. It is too difficult to find any strategic place.

52.  Mister A......., Does C...... Hipper Market want to open market in different formation ?

No, we are not changing our market formation. C....... Hipper Market target is expanding with the hipper markets and supper markets.

 

53.  Mister A......, does C....... Hipper Market want to give any Franchising?

   

Franchising system is in our thinking. Firstly, we want to try C...... Hipper Market in 2 or 3 cities. We want to see knowledge managing system, logistic and procurement difficulties and also we create our own Franchising system. C....... Hipper Market gives advertising which city they go.  

54.  Mister A........, do you support the government’s inflation politics?

   We give our support to the government by own with our workings. Now in Ankara C....... Hipper Market defines the fruit and vegetables cost. C....... Hipper Market is selling the fruits and vegetables with and low profit. Because of this our competitors are also decrease their cost. However, because of this reason we take big reactions from green grocery. This is big and bad thinks. Because we want to help the decrease of the inflation in Turkey but the groceries do not understand us. The credit card’s term is so important. Before the 2000 years the commission of credit cards or 22 days or 25 days zero term but now the commission of credit cards up to 35 days or 40 days. And we see lots of firms are bankruptcy. If the government supports then we support them. Also commercial centers are getting together their power.

55.  Mister A......., in Europe and in United States of America there is a big encouragement to use their own products, which are produced by them. Especially, they preferences the local brand. In your opinion when we start this kind investment and in Turkey are there any companion making about “ using your own product”? What do you think about that?

 

        To getting out from the crisis in Turkey, people should love their country. If Europe and United States of America people use their own brand also we use our brand. However, In Turkey there is a reality. This is unbalanced of delivering of salary.Wholesalers are middleman between producers and consumers. We see that both    wholesaling sector and market’s own brand are increasing very much. In situation, wholesalers and producers should make a good corporation. Why? Because, we make analysis the market and the customers and also to determinate the consumers shopping habits. At the end of these analysis and determinations we are defining the brand and through this workings we are producing local and national brands. It is very beneficial for Turkey’s economy. Our money does not go abroad and it  stays in Turkey thus the inflation of Turkey can start to decreases. 

          56.  Mister Aktoklu, for last do you have any message?

 Yes, I have messages. Firstly, approximately one year ago the markets were wanted to move out the cities for balanced the groceries and hipper markets, supper markets and market profit. It is very wrong to move the hipper market, supper markets and markets out the cities. Instead of this, you can closed the market on Sundays and you can define work schedule for hipper markets, supper markets, and markets.

      Secondly, C........ Hipper Markets thinks that nowadays to make invest the technology is needed but in the competition we believe that human being is advantage for a company.

       

Thirdly, every time which market is opening very fast, it means in 5 years market owners want take portion from the cake. What is that mean? It means wholesaling expanding very much.

  Fourthly, to getting out from the crisis in Turkey the government supports the modern wholesaling. They can not blocked the wholesaling, they should encourage the wholesaling.

  

  Fifthly, the biggest wholesalers in Turkey they explain that “we are affected from the crisis” this is chance for middle and little wholesalers. The new era is started and they transfer from theory to paretic for earning money.

  Finally, in this sector, all products and all selves are same. If anyone who catches the differenties    wins in this sector.