SafeSourcing Wiki [H-K]

Return to Main Wiki Index

Industrial Buyers
No Comments Yet

These are organizations on behalf of which goods and services are purchased specifically to be used in the production of other products. During the course of production, the forms of the “bought-out” products will be converted into products with greater utility, that is, which satisfy wider needs. Organizations in this category include those which are involved in extractive activities (e.g. mining, quarrying, oil drilling); those involved in agriculture, horticulture, forestry and fishing; and those involved in manufacture (whether of “finished” goods or of products - e.g. components - for sale to and use by other manufacturers). Some materials purchased by industrial buyers might be “raw materials”, other products might be components. What are the “finished products” of one industrial organization might be the raw materials of another. For example, a forestry plantation business grows trees, which are eventually felled; its finished products - logs - might be purchased by a timber/saw mill, where they will be considered its raw materials. The finished products of the mill might be cut and planed planks and sheets of wood. Some of that wood might be purchased by a furniture manufacturing business, in whose factory the wood will be considered one of the raw materials on which it depends; the furniture manufacturer is likely also to have to purchase components from other manufacturers, such as those who produce nails, screws, foam, fabrics, and so on, all of which products are needed to produce the factory’s “finished products” - furniture in this case. In most - if not all - instances industrial buyers aim to make profits from their activities, and therefore the efficient and professional purchasing of products at the right prices, of the right qualities, in the right quantities, and at the right times is essential to their endeavors. The products they purchased are considered to be “commercially significant” to their operations.



  Rating
Rate This Page: Poor Great   |  Rate Content |
Average rating:  5   
12345
Number of Ratings : 1
  Comments

 |  View Topic History  |