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Supplier relationships under the epidemic

Date:2021/11/4 15:09:46 Hits:2634

In a sense, the epidemic is good for cross-border e-commerce exports. In an environment where offline transactions are forced to be pushed online, the substantial increase in turnover is an inclusive event, and may not be the result of a certain seller’s excellent management. The continuous growth of overseas physical consumption (see the US e-commerce trend), the severe interference of the epidemic on production and logistics, has pushed up the price of raw materials and the serious interference of logistics, and has pushed up the price of raw materials and logistics costs, and it will be all in the short term. It is unlikely to fall back. Under the premise of short supply, ensuring commodity supply and capacity will be the rocket booster for business growth in the future.


For a well-run commodity supplier or logistics company, business development under the epidemic has become easier than ever. A large number of customers visit due to lack of goods and spaces, maintaining stable and long-term business relationships than development prospects New customers who are still unclear are much more important. For cross-border e-commerce sellers, how to make themselves the choice of suppliers and focus on ensuring supply is a supply chain optimization project worthy of effort.
A closer supplier relationship does not mean letting go of purchase prices, but you should be cautious about holding pure bargaining. Bargaining and negotiation are different purchase price management techniques. Bargaining actually requires suppliers to give up part of their profits, which is a zero-sum game. Negotiations are more about reducing supplier costs through cooperation in order to achieve product price reductions, which is a win-win situation. For example, if a supplier requires a price increase due to an increase in the price of raw materials, if the asking price is too high, it should be bargained to directly request a price reduction to meet the actual market increase.
The optimization of prices through negotiation will be more laborious than bargaining. Negotiations require sellers to invest more time and resources, and even have a more professional understanding of purchasing goods and services. Therefore, unless the procurement or logistics manpower is increased, reducing the number of suppliers and then stabilizing long-term cooperation with suppliers is the prerequisite for continued negotiations.
Negotiations need to pay more attention to supplier costs. Supplier’s cost. In addition to the raw materials they need. More is the cost of its internal supply chain links. More standardized procurement and production, stronger planning is a weapon to reduce supply chain costs. By optimizing the category of products, sellers reduce the types of products and increase the single purchase volume of best-selling products, which will help suppliers to achieve more standardized procurement and production. By sharing their business plans and speculations, sellers can not only help suppliers improve their planning, but also allow suppliers to reasonably predict the seller's demand when formulating their own long-term plans, so as to ensure the supply of goods or capacity.
Rising labor costs are also a large part of supply chain costs. In addition to being cautious about not having a new job within the seller, the seller should also pay attention to controlling the workload of the supplier to avoid invalid labor and causing the supplier to include the cost in the sales promotion price. A very common example is that sellers usually require suppliers to provide various periodic reports to monitor the health of each link, and these reports sometimes lose value due to business development. At this time, the seller should take the initiative to request the supplier to stop the worthless report, so as to focus on the greater value of both parties.
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