Chemical buyers often have to perform a careful balancing act in the process of meeting conflicting priorities. Every purchase needs to be made at the lowest possible cost and from the most dependable supplier.
Buyers also need to bear in mind that the quality of raw materials procured has to meet the required specifications. Even a single batch of raw materials that is substandard can result in large losses in the manufacturing process. In fact, poor quality supplies or raw materials with extraneous substances can damage the buyer’s reputation and can lead to expensive recalls or even litigation.
E-commerce platforms can be a great help to chemical buyers. They can aid in identifying suppliers with the lowest prices and also provide a wealth of other information that can prove to be of great use to buyers.
Online platforms also assist the chemical buying process in one other very important way. All the suppliers listed on the e-commerce company’s website are pre-approved. They have been through a rigorous selection process which ensures buyers have complete information before they finalize a transaction on the platform.
Supplier registration process
How does an online platform decide if a supplier is qualified to be featured on its website? It gathers information that will help determine how a supplier can add value to the buyer’s purchasing process.
The specific areas that the registration process addresses are:
- Will the buyer’s risk in making a purchase be minimized?
- Is enough data being collected about the supplier? Can the buyer enter into a transaction with the seller in the least possible time?
- Is everything being done to ensure that the supplier validation process to be conducted by a new buyer can be completed quickly?
Benefits of dealing with a pre-approved supplier
Supply chain management is at the very heart of running a successful manufacturing business. The cost of raw materials makes up a substantial portion of total costs. In the chemical industry, even a relatively minor variation in input costs can have a strong impact on overall profitability. A company that consumes chemicals can boost its profits by making its procurement process more efficient.
But managing suppliers in a manner that provides the greatest value to the purchasing organization is not an easy task. It requires a sustained effort, the allocation of dedicated manpower, and in many instances, a great deal of management time.
Small and medium-sized companies that consume chemicals find it particularly difficult to devote an adequate level of resources to this exercise. Most chemical consumers have dozens of suppliers. A few of them could account for a bulk of the purchases that are made by the company. But it is not enough to manage only these firms.
The suppliers who provide limited quantities of chemicals or who account for a smaller part of the total purchase budget can also be critical to the manufacturing process.
An online platform can be a great help to buyers as the suppliers listed on its website have already been through an elaborate screening exercise. Their performance is tracked and measured on a continuous basis.
Supplier management plays a key role in a company’s success
Chemical buyers gain a tremendous advantage by sourcing raw materials through an online trading platform. They do not need to spend much time in verifying new suppliers.
They can simply check a seller’s record on the e-commerce company’s website.
In addition to this benefit, buyers also gain from lower prices and the ability to select the required raw material from a wide range of sources.
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