Blog

The famous cost breakdown

March 2, 2021

Certainly you, a purchasing professional (or Supply Chain), have heard of cost breakdown. But, why is this concept so important that even exercises related to it are often used as an elimination criterion in job interviews?
The cost structure not only allows an understanding of the material or service’s cost composition, but also guides the authorization of price adjustments when they are requested. Let’s use an example to facilitate understanding: You are responsible for the glass packaging...

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The danger of ‘lives’

February 24, 2021

2020 has changed the world and that is a fact! Coronavirus or ‘CV-19’ will forever be a "watershed" in people's lives.
Offices and houses merged into one space, work hours and leisure hours as well. The digital world has become even more expansive with 'happy hours' and 'onboarding' of new employees now being virtual. It is also a fact that the profession of 'influencer' started to have a greater proportion and adhesion in 2020. It is more and more common (and also a joke for some) that...

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Difficult Conversations

February 1, 2021

Hello buyers, today we are going to talk about one of the most common issues in a buyer's life: Negotiation!
Buyers are usually known for using their negotiation skills to achieve the expected result. Sometimes these skills are natural and other times they are developed in courses or exercises. This is also where we find the trap that can lead buyers to failure in the long run.
Among the hundreds of existing negotiation techniques (we will talk about them in another article), some suggest...

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RFX, PMP, Benchmark, OTD

January 27, 2021

RFx, PMP, OTIF, OTD, CAPEX, DDP, FOB… calm down! Before you feel lost, Cafe Procurement Hub is here to help you.
See below for a small dictionary with the main acronyms and technical terms used in the Purchasing area.

B2B - Means “Business to Business.” This term is used by some companies to designate that they do not provide services or sell products to individuals, only to other companies.

B2C - Means “Business to Customer.” Used to indicate companies that sell directly to the end...

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Price Formula

January 14, 2021

Hello buyers!
Today we are mainly going to talk about price formulas and about the so-called “Triggers.”
There is no exact rule on whether or not to use a price formula, and although the time spent during the initial trade is lengthy, the benefits of having a formula outweigh it. Generally, a price formula is used when a large part of the material’s production cost is linked to a commodity (world consumer goods or traded on stock exchanges worldwide).
Attention! We will not discuss the sales...

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