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  • How chemicals are bought

    Staff -- Purchasing, 4/4/2002 7:00:00 AM

    Change is the watchword in chemicals buying. A new exclusive research study by PURCHASING Magazine finds chemicals-consuming companies—

    • Aggregating their demand and using fewer suppliers,

    • Centralizing their buying organizations to exploit corporate purchasing leverage,

    • Using more instruments, such as futures contracts, to manage price and supply risks for chemicals, chemical raw materials, and energy,

    • Buying more chemical products directly from producers and placing fewer orders with distributors (a consequence, perhaps, of more center-led strategic buying), and

    • Making fewer spot buys in favor of more long-term contracts with suppliers.

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