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...
Benefits of its use and the pitfalls of the trigger
A little inspiration to start 2021
2021 started and you, a buyer, are getting ready for this new year and are updating your readings when you face a text called “Dancing Through Life.” You may be wondering what this text has to do with Purchasing. I’ll explain. In my last text of 2020, we talked about resilience (the gift that 2020 gave us) and now, in my first text of 2021, before we start discussing technical purchasing subjects, I want to talk about something extremely important for any professional: inspiration!
One of my...
What this unprecedented year brought us
What year my friends!
Informal surveys report that 9 out of 10 people considered 2020 to be a tough year. There were many difficulties, adaptations to make, but mainly losses. Loss of relationships that did not resist the “house arrest” imposed by the pandemic, loss of work positions that also didn’t resist the chaos created in the economy due to changes in consumer habits and especially the loss of lives. There were 356,000 deaths in the USA and 1,750,000 deaths worldwide. Fathers, mothers,...
Demystifying the main clauses and how to obtain advantages through their applications.
Hello purchasing professionals! Welcome to the last post about contractual clauses. Previously, we talked about the less complex negotiation and execution clauses (Price Adjustment, Rebate, Force Majeure and Contingency Plan). We also discussed the medium complexity clauses (Exclusivity, Competition, Initial Right of Refusal and Take or Pay), so now we will finally close this series with the most complex clauses: Most Favored Consumer and Meet or Release.
Most Favored Consumer: Since we are...Read more
Demystifying the main clauses and how to obtain advantages through their applications
Hello purchasing professionals! In the last post, we talked about the contractual clauses considered of low complexity (price adjustment, rebate, force majeure and contingency plan), now that you already know them and understand how important their application is to protect your company and your supplier, let's discuss the medium complexity clauses, which are: Exclusivity, Competition, Right of First Refusal, and Take or Pay.
Exclusivity: This is commonly mixed up with the competition...Read more