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Basic knowledge when purchasing cosmetic packaging materials(Chapter-One)

Update:13-03-2019
Summary:

I believe that the most basic purchasing knowledge is t […]

I believe that the most basic purchasing knowledge is the most important for the purchase of cosmetic packaging materials that I have just entered. However, as far as I know, there are very few such books and training. Therefore, I will accumulate some basics for many years. The general knowledge of the purchase of cosmetic packaging materials has been sorted out. I wonder if it will help you in your future work.

1. What is long-term contract purchase? What are the advantages and disadvantages?

The so-called "long-term contract procurement" is the buyer's commitment to purchase a certain amount of goods from the seller within a certain period of time, and sign a contract to hold the two parties abide by. Its advantages: 1) delivery, the source is stable. 2) The value is huge and the trading conditions are better. 3) Legal protection, all of which are profitable. Its shortcomings: 1) price negotiation is not easy, and the contract is ineffective. 2) The number of contracts is fixed and it is difficult to match the market adjustment. 3) Dependency, procurement function is reduced.

2. What are the multiple supply? What are the advantages and disadvantages?

The so-called "multiple supply" is a decentralized source that distributes the quantity of purchases to several different suppliers. Its advantages: 1) The seller competes to make the seller feel crisis-conscious. 2) The source is scattered and not interrupted. 3) More market intelligence is conducive to grasping the trend. 4) It is easier to obtain product expertise. Its shortcomings: 1) Decentralized procurement, loss of quantity discount. 2) There is a lack of dependencies between buyers and sellers. 3) Increase the burden of delivery management.

3. What are the conditions for multiple supply?

A number of supplies are more suitable for the following conditions: 1) The amount of major raw materials or articles required is large. 2) The seller cannot supply it alone. 3) Items with standardized specifications.

4. What is the exclusive supply and what is the situation?

The so-called exclusive supply means purchasing from only one supplier. Applicable to the following conditions: 1) the interests of both buyers and sellers. 2) Source control or exclusive market. 3) Precision and complex prototypes. 4) The product has a short life cycle and often needs to change the design. 5) The product needs to be unique.

5. What is joint procurement? What are the advantages and disadvantages?

The so-called joint procurement refers to the collection of demand from peers or related companies and ordering from suppliers. Advantages of joint procurement: 1) Coordinating supply and demand, establishing production and marketing order. 2) Price concessions. 3) Promote cooperation with the industry and achieve economic diplomacy. Disadvantages of joint procurement: 1) The procurement procedures are complicated, and the organizer must pay a fee. 2) The timing and conditions of procurement may not be able to match individual needs. 3) Cause joint monopoly.

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