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The basic common sense of purchasing cosmetic package must be known
Feb 26, 2018

1.What is a 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 to the seller for a certain period of time and to sign a contract to hold the two sides.

Its advantages: 1) period of delivery, the source is stable. 2) the value of the volume is huge and the transaction conditions are better. 3) legal protection, the benefit.

Its shortcomings: 1) Price negotiation is not easy, and the contract performs practically no function.2) the number of contracts is fixed, and it is difficult to coordinate with the market. 3) Dependence on by-nature, purchasing function is reduced.

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

The so-called "multiple supply" is a decentralized source, and the number of procurement is allocated to several different suppliers.

Its advantages: 1) the seller's competition makes the seller have a sense of crisis. 2) the source is scattered, and the interruption is unnecessary. 3) there are more information in the market, which is beneficial to the grasp of the trend. 4) it is easier to acquire professional knowledge of products.

Its shortcomings: 1) decentralization of procurement, the loss of quantity discounts. 2) there is a lack of interdependence between the buyers and sellers. 3) increase the burden of delivery management.

3. What are the conditions for more than one supply?

More than one supply is suitable for the following conditions: 1) the quantity of the main raw materials or items is large. 2) the seller is unable to supply alone. 3) standard items of specification.

4. What is the exclusive supply? What are the conditions applicable to it?

The so-called exclusive supply refers to the purchase of only one supplier.

It is applicable to the following conditions:

1) the interests and common interests of the buyers and sellers.

2) source control or monopolization of the market.

3) sophisticated products.

4) the life cycle of the product is short, and it is often required to change the design.

5) the product needs to be unique.


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