Common sense of cosmetic packaging materials procurement

For those who are just entering the industry in purchasing cosmetics packaging materials, I think the most basic purchasing knowledge is the most important, but as far as I know, such books and training are very few. Therefore, here I will accumulate some basic I have sorted out the common sense of cosmetic packaging materials procurement. I wonder if it can help you in your future 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 signs the contract for both parties to keep it. Its advantages: 1) Delivery by contract and stable source. 2) The value is huge and the trading conditions are better. 3) Legal protection, each has its own benefits. Disadvantages: 1) Price negotiation is not easy, and the contract is in vain. 2) The number of contracts is fixed and it is difficult to cope with market adjustments. 3) Reliance becomes a reality and the purchasing function is reduced.



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

The so-called 'multiple supply' refers to decentralized sources, and the purchase quantity is allocated to several different cosmetic tubes suppliers. Its advantages: 1) The seller's competition makes the sellers have a sense of crisis. 2) The sources are scattered without interruption. 3) There is more market intelligence, which is conducive to grasping the trend. 4) It is easier to obtain product expertise. Its disadvantages: 1) scattered purchases, loss of quantity discounts. 2) The buyer and seller lack dependency. 3) Increase the burden of delivery management.



3. Which conditions are applicable to the supply of multiple cosmetic tubes?

Multiple supplies are more suitable for the following situations: 1) The demand for major raw materials or items is huge. 2) The seller cannot supply it alone. 3) Items with standardized specifications.



4. What is the exclusive supply of cosmetic tubes? What conditions does it apply to?

The so-called exclusive supply refers to purchasing from only one supplier. Applicable to the following situations: 1) Both buyers and sellers share the same interests. 2) Source control or monopoly of the market. 3) Precise and complex trial products. 4) The product life cycle is short, and the design often needs to be changed. 5) The product must 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 affiliated companies and ordering from suppliers. Advantages of joint procurement: 1) Coordinate supply and demand, establish production and sales order. 2) The price is favorable. 3) Promote inter-industry cooperation and achieve economic diplomacy. Disadvantages of joint procurement: 1) The procurement procedures are complicated, and the organizer must spend a lot of time. 2) Purchasing timing and conditions may not be able to meet individual needs. 3) Create a joint monopoly.



6. What conditions does joint procurement apply to? What problems will you encounter?

Joint procurement is applicable to: 1) Emergency procurement under import control. 2) In a seller's market, buyers are weak. Joint procurement faces the following problems: 1) Uneven distribution of quantities. 2) The quotation method is chaotic. 3) Different payment capabilities. 4) The delivery work is slow.



7. How to find a supplier of cosmetic tubes?

When looking for a wide open source of suppliers, whether by soliciting by yourself or by reporting, you must be proactive. In addition, the search for suppliers should not be limited to local or domestic sources, and should also use sources of supply from other places or abroad. The search for suppliers is carried out in the following various ways: 1) Use existing information. Select from the establishment of a file or roster of qualified manufacturers. 2) Open bidding. 3) Through the introduction of the industry. 3) News professional publications. 4) Association or procurement professional consulting company. 4) Participate in product exhibitions.



8. Is only the purchasing personnel responsible for selecting suppliers?

It is advisable to form a supplier selection team composed of procurement, engineering, quality control, and production management personnel to collect the effects of thinking in a broad sense.



9. What are the objective criteria for selecting cosmetic tubes manufacturers?

The objective criteria for selecting manufacturers include general operating conditions, manufacturing, technology, financial conditions, quality control capabilities and management systems.



10. Why do qualified manufacturers still need to be classified and graded?

The classification of qualified manufacturers is based on the professional functions of each factory; the classification is to classify all types of qualified manufacturers according to their capabilities. The purpose of classification is to prevent manufacturers from handling all kinds of procurement cases and prevent outsiders from doing insider work; the purpose of classification is to prevent manufacturers from taking everything big and small, and to meet the needs of procurement, and to select appropriate manufacturers.



11. Is the more objects of inquiry, the better?

In principle, the more inquiring objects should be, the better, because the more vendors that offer quotations, the more you can select carefully and let the suppliers compete fiercely to reduce costs.



12. Why must the supplier of cosmetic packaging tubes provide a cost analysis table?

Since the buyer's estimated reserve price or budget is sometimes not very reliable, if you can rely on the supplier's cost analysis (CostAnalysis), you may be able to get twice the result with half the effort.



13. If the wholesale cost analysis of cosmetic packaging tubes is provided by the seller, what is the inconvenience to the price negotiation?

There are usually two ways to use the report for cost analysis: 1) Provided by each quotation vendor. 2) The purchasing unit pre-edits a standardized quotation or cost analysis form and provides it to all suppliers to fill in uniformly. If the first method of individual reporting is adopted, it will be difficult to achieve consistency in the content of quotations or cost analysis items between vendors, which will increase the difficulty of future bargaining and price comparison for purchasers, and some suppliers may even avoid the important issues. Because of its simplicity, the benefits provided by this sloppy cost analysis table are quite limited. On the contrary, if the cost analysis table of the second standard is used for purchase, the quotation content and the project have been planned in advance by the purchase unit, and the quotation basis of each manufacturer is completely consistent, and there will be no uneven phenomenon, which makes the price comparison work more effective.



14. Why is it necessary to conduct price analysis of packaging tubes for wholesale cosmetics?

Price analysis can compare suppliers' quotations with each other to achieve fair competition. The following benefits can be obtained by conducting price analysis: 1) Find out whether there are errors in the content of the quotation in advance, avoiding disputes about future delivery, and ensuring that any conditions attached to the supplier are acceptable to the buyer. 2) Unify different quotation bases to facilitate future bargaining and price comparison work. 3) Cultivate the cost analysis ability of purchasing personnel, and can also avoid the lack of negotiation based on the 'total price'.



15. Should bargaining start with wholesale cosmetic packaging tubes manufacturers with higher or lower quotations?

After quotation analysis and review, the quotations of 3 to 7 manufacturers are arranged in order of high and low (price comparison), first find the third lowest price comparison result to negotiate the price, and find the lower limit, then find the second one to negotiate the price. After these two bargaining, the 'reserve price' may emerge. If the reserve price is lower than the lowest quotation, it means that the third and second lowest quotations are quite high. Then the lowest quotation can be found to negotiate the price, and the reserve price after the aforementioned third and second lowest price is reduced. The lowest price must be lowered to below the reserve price. If the lowest quoted price is unwilling to lower the price, it can be handed over to the second or third lowest price to be traded at the lowest price after the negotiation.



16. How can purchasing personnel make good use of the bargaining power of their superiors?

The willingness and extent of suppliers to reduce prices often differs depending on the bargaining object. If the purchaser is not satisfied with the result of the bargaining, he should ask the superior supervisor, purchasing manager, or even the general manager to come forward, and invite the seller鈥檚 business manager or higher level directly Dialogue, because high-level supervisors are not only proficient in bargaining skills, high in bargaining skills, but also have good social relations and high status. They are easier to win the trust and friendship of the other party. Often, they can obtain quite satisfactory bargaining results with just a hello.



17. What kind of bargaining techniques should be adopted for combined products?

The bargaining skills of 'dividing into parts' should be used: 1) Please provide a quotation from a manufacturer who can supply a complete product, but each component must be quoted separately in the quotation. 2) According to each supplier's quotation, find the lowest total price and set it as the upper limit of the future transaction price. 3) In addition, other professional manufacturers (those who cannot provide complete products) are invited to submit quotations for individual components. 4) From the quotations of all manufacturers, including those who provide complete products and individual components, select the lowest price of each individual component. 5) Add up the minimum prices of the aforementioned individual components, and the sum obtained is set as the lower limit of the future transaction price. 6) According to the upper limit of the second item and the lower limit of the fifth item, the future transaction price is between the upper and lower limits. However, the lower limit is only the sum of the prices of individual components, and combination costs, testing costs, etc. must be added, so the lowest total value should be slightly higher than the lower limit.



18. Why shouldn't the buyer excessively pressure the seller to lower the price?

1) Cause many low-quality manufacturers: When the buyer forces the seller to accept unreasonable prices, some manufacturers may leave in anger. The remaining manufacturers may no longer be excellent, which will cause troubles in delivery and quality in vain. As far as the buyer is concerned, it may be The gain is not worth the loss. 2) Possibility of retaliation: When the market conditions improve, the manufacturers who have been trying to compromise will definitely return to the original profit, causing the buyer's cost to skyrocket.



19. Why can't the buyer easily reveal the purchase intention?

The buyer should adopt the bargaining technique of 'getting it out and letting it go'. Don't make it obvious that you must buy it. Otherwise, the buyer will be at a disadvantage. The buyer can also adopt a 'if it is, if you leave' attitude. If it can judge that the seller has a strong willingness to sell, then ask for more Low prices, and to give up if you don鈥檛 agree, or to seek other sources. If the seller wants to sell, but the profit is too low, the buyer is required to increase the price at his discretion. At this time, if the buyer's demand is quite urgent, it should be possible to quickly increase the price; if the buyer is not in urgent need, it can indicate that it will never increase the price, and the seller is likely to agree to the buyer's price reduction request.



20. What should I do if I dare not rashly negotiate the quotation of a cosmetic packaging supplier?

Ask cosmetic packaging suppliers to disclose cost information, and then add reasonable profits to calculate the price. As far as cost is concerned, the cost must be checked item by item, and the most important thing is to eliminate or reduce the items that the supplier may irrigate. As far as profit is concerned, it is difficult to have a certain standard because the situation of various industries is different. In addition, it depends on the size of the transaction amount, and the supplier鈥檚 profit usually decreases with the expansion of the transaction amount.



21. Why do cosmetic packaging suppliers often fail to deliver on time?

1) Exceeding production capacity or insufficient manufacturing capacity. 2) Poor subcontracting. 3) Lack of responsibility. 4) Poor manufacturing process or quality. 5) Lack of materials. 6) The quotation is wrong or the price is too low.



22. What are the reasons for the delayed delivery of cosmetic packaging that are the buyer's responsibility?

1) Insufficient time for purchase and shipment. 2) Temporary changes in specifications. 3) The production plan is incorrect. 4) Urgent order. 5) Select the wrong order object. 6) Not actively urging goods. 7) Failure to supply materials or molds in time. 8) Inadequate technical guidance. 9) In case of low price order.



23. How can we ensure that cosmetic packaging suppliers deliver on time?

1) Formulate a reasonable time for purchase and shipment. 2) Strengthen ties between sales, production and purchasing units. 3) Mid-term audit and inspection at the factory. 4) Prepare alternative sources. 5) Increase penalties for breach of contract.



24. How to do a good job of cosmetic packaging acceptance?

1. The number of points received. 2. Quality inspection: 1) Confirm the supplier, where the material comes from, and whether there is any error or confusion. 2) Determine the delivery date and acceptance date. 3) Determine the name and quality of the material. 4) Count the quantity. 5) Notify the acceptance result. 6) Deal with short loss. 7) Return unqualified items. 8) Dispose of packaging materials. 9) Mark the items that have been accepted for storage.