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Blog posts of '2016' 'May'

Purchasing from a Distributor vs. Manufacturer
In the distributor vs. manufacturer debate,  the distributor will be the most attractive option in most cases due to a variety of reasons.

Most companies seek the services of a manufacturer to have something custom-made, for example, packaging or a specially sized part, or some custom design work. This type of work is where manufacturers excel because they tend to focus on the creation of something rather than the sale of a product.   
      
A distributor focuses on the selling of goods rather than their production.  You can feel confident that a distributor is more customer-focused, and they will provide you better shipping times, and more reasonable pricing. A distributor can help you meet your sales goals, for example, a distributor understands that you need to get product quickly to make it available to your end customer fast and at the best price possible.
   
Another benefit of working with distributors is that they tend to offer low minimums for wholesale orders, which is quite different from most manufacturers.  A manufacturer usually makes a sample of a product and then requires a large order of that item to justify the cost to create the product. Large quantity orders are not a concern when using a distributor because order minimums are usually much lower. Also, most distributor locations tend to be more local, making it more convenient and quicker to receive deliveries.
 
Moreover, a distributor has access to multiple manufacturers and products. This is the best situation for the customer because they will be provided a solution that best fits their needs instead of being offered a single solution by a manufacturer. In this particular scenario, the distributor shines by providing better sales support and flexibility.
 
Our dedicated and knowledgeable staff would welcome an opportunity to assist you further. Please feel free to contact us with any questions or to place an order.
How to determine your company’s purchasing patterns: 4 Steps

Your sales pipeline management is an important part of keeping your supply side costs low. Here is how to determine your company’s purchasing patterns and save money from the analysis.

The Hierarchy of Decision Making

How many people does an order go through before it gets finalized? Is the hierarchy a bottleneck? These questions are the most important to ask at the beginning of your analysis, because people create systems, not the other way around.

Purchase Frequency

Is your company better served with an on demand schedule, or do you gain some leverage from stocking up in an off-season? Check the pricing of your suppliers to see if you can get better prices during certain times of the year, and weigh the savings there against your costs of storing inventory until you need it.

Purchase Payment

Cash flow is a very important part of business that too few people consider. A net 60 versus a net 30 payment structure can create the difference in payroll during a slow sales season. In general, use good credit to gain leverage for tough times.

Purchase History

Your past success in purchasing should dictate future policy. Are there certain times during the year when you can count on higher sales? Did having an inventory save you from a bottleneck in the past? Go over past records and determine the best pattern for your future through the best times in your past.

 

Please contact us when you are ready to buy razor blades at wholesale prices for industrial or commercial clients. We pride ourselves on being your trusted niche vendor with a cost-effective solution for your purchasing needs. 

Direct Procurement vs. Indirect Procurement

 The way that you buy has just as much to do with your success in business as what and how much you buy for. You must understand the difference between direct procurement and indirect procurement in order to move your business forward.

What is Direct Procurement?

Direct procurement focuses on volume-based purchases of raw materials. These purchases directly affect the revenue stream of a business, and the volume orders allow the company to acquire resources at cheaper prices. Companies that look ahead can save money and lock in lower rates for raw materials using direct procurement.

What is Indirect Procurement?

Indirect procurement focuses on service based purchases that allow for the daily operation of business. These purchases are more singular in nature and have less to do with revenue than with operations and administration.

An Example of the Difference

For instance, while a direct procurement may involve purchasing palettes of steel and copper to manufacture computer chips, indirect procurement is more along the lines of outsourcing an air conditioning repair to the local HVAC company once every six months.

Which Type of Procurement is More Important?

Without direct procurement, a company will not produce the revenue that allows it to buy indirect procurement services. Although the company in the above example may find the office uncomfortable without AC for a few months, prioritizing AC over the steel and copper limits the company's ability to ever make the AC repair.

Please contact us when you are ready to buy direct and save. We offer direct procurement opportunities to help your business longevity.

Quick Facts: Blade Types Explained

2-Facet: A good balance of sharpness and durability. Primarily for scraping and basic cutting.

3-Facet: Precision ground third angle increases sharpness. Used for thin or delicate material.

Stainless Steel: Best for precise applications where corrosion can be an issue, such as cleanroom environments. Provides precise initial cut.

Carbon Steel: Durable for tougher and harder material. Best for scraping applications.

Plastic Blade: Best for applications where safety, scratches, pitting, and rust are a concern. Blades come in a variety of tensile strengths, have a longer lasting edge, low moisture and chemical absorption, a low friction coefficient, and a longer shelf life. Perfect for glass, plastics, chrome, marble, and painted surfaces.  

Coated Blade: Improves lubricity through cutting process for cleanest cuts.

Uncoated Blade: No additional coating. In many cases coatings are not needed for application, and the blade tends to be less expensive than coated blades.

Degreased Blade: A cleaning process developed to reduce oil and particulates from manufacturing process to create the cleanest blade available. Reduces foreign material transfer. Developed with specific cleanroom applications in mind.

Heavy Duty Blade: A .012" thick blade is considered heavy duty. With a thicker steel edge the blade can withstand super tough jobs whre regular duty blades will break.

Backing or Spine: Steel backing will create a stiff blade. Aluminum backing allows for blade flexibility. Stainless steel is best for environments where corrosion is a concern.

Still not sure what you need to get the job done? Contact Us and our friendly blade experts will be happy to help!