In fact, the cost of raw materials occupies 60% of total products cost. For automobile industry, purchasing cost of raw material even reaches 80% of the total cost. Therefore, Extending procurement to raw material area is more helpful to lower down the pricing and further reduce procurement costs. In addition, through raw material purchasing, we can ensure the quality of finished goods from the source.
B & F, except for its qualification of being an agent for purchasing raw materials, can also realize the,
Centralized procurement by taking good advantage of its enormous demand generated by huge customer bases.
Centralized purchasing, as opposed to decentralized procurement, means a specialized procurement organization does procurement for a number of enterprises all at one time.
By obtaining overall and general demand information, we can make a unified contract with suppliers and negotiate the price with them on the substantial orders thus reducing the cost greatly.
