Basic knowledge when purchase cosmetic packaging materials

Update:03 May 2018

Purchasing cosmetic packaging materials, do you underst […]

Purchasing cosmetic packaging materials, do you understand these basic knowledge?(Chapter One)

For the newly-acquired counterparts of cosmetic packaging materials, I think the most basic purchasing knowledge is the most important. However, as far as I know, such books and training are rare. Therefore, here are some of the basic things that I will accumulate for many years. Cosmetics packaging materials procurement knowledge out, I do not know if I can help people after work.

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

The so-called "long-term contract procurement" means that the buyer promises to purchase a certain amount of goods from the seller within a certain period of time, and concludes a contract so that the parties can keep their promises. Its advantages: 1) Approximately delivery, stable sources. 2) The value is huge and the trading conditions are better. 3) Legal protection, each Mongolian. Its shortcomings: 1) Price negotiation is not easy, and the contract is useless. 2) The number of contracts is fixed and it is difficult to coordinate with the market. 3) Reliance on sexuality, reduced purchasing capabilities.

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

The so-called "multiple supply" is a decentralized source and allocates the purchase quantity to several different suppliers. Its advantages: 1) The seller's competition, so that the seller has a sense of crisis. 2) Sources are scattered and uninterrupted. 3) There are more market intelligence and it is helpful to grasp the trend. 4) Easier access to product expertise. Its disadvantages: 1) Decentralized procurement, loss of quantity discounts. 2) There is a lack of dependence between buyers and sellers. 3) Increase the burden of delivery management.

3. What is the status of multiple supplies?

More than one supply is more suitable for the following conditions: 1) The quantity of major raw materials or articles required is huge. 2) The seller cannot supply it alone. 3) Specifications standardized items.

4. What is exclusive supply? What conditions apply?

The so-called exclusive supply refers to purchasing from only one supplier. Applicable to the following conditions: 1) buyers and sellers have common interests. 2) Source control or exclusive market. 3) Precision and complex trial products. 4) The product life cycle is short, and often need 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 demand of the same industry or related companies and orders from suppliers. Advantages of joint procurement: 1) Co-ordinate supply and demand, establish 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 for the weekly fee. 2) The timing and conditions of procurement may not be able to match individual needs. 3) Create a joint monopoly.

You may wait for chapter two in one week.

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