Low-cost suppliers

The rising competitive pressure in the chemical industry, accelerated by the emergence of low-cost suppliers in emerging economies, represents a massive call for further improvement action in the service organizations. 

Thus the employer only has the possibility to limit the selection of the plant manufacturers. Based on the contractual integration of the vendor list, the so-called low-cost suppliers as subcontractors can be specifically excluded. Of course the plant manufacturer has to take account of this fact when fixing the quotation price. 

Low cost nickel hydroxide. From 1995, where high density spherical nickel hydroxide prices were around 30 per kg, new low cost suppliers and manufacturing processes have allowed nickel hydroxide prices to drop below 10 per kg. 

For the supplier it is important to understand DPP inasmuch as his/her ability to be a low-cost supplier is clearly influenced by the costs that are incurred as that product moves through their logistics system. Similarly, as distributors and retailers are now very much more conscious of an item s DPP, it is to the advantage of the supplier equally to understand the cost drivers that impact upon DPP so as to seek to influence it favourably. 

Mr Lawton said that while many companies would still find it attractive to consider moving production overseas, a significant minority had concerns over quality and reliability of low-cost suppliers. 

As explained earlier, the relief supplies are procured for two buckets prepositioned inventory, and real time deliveries. Procurement can therefore be structured in the way discussed with respect to the Griffin Manufacturing case, discussed in Chap. 6. The supplies for prepositioned inventory can be procured in a proactive mode - a long-term contract with low-cost suppliers and ample delivery lead time. Such contracts are usually of the fixed-price type, where price is determined through a bidding process (reverse auction). The supplier bids a fixed price but must satisfy buyer stipulated specifications on the RFQ. The supplier bears all risk associated with cost escalation, but he/she prices his product appropriately to cover his production risk. Clearly, a fixed-price contract is easy to implement and inexpensive to monitor. 

Seasonal Demand and Sourcing Cost from Low-Cost Supplier... 

CEO s example, may rein in the pharmacy s costs by continually switching to the latest low-cost supplier, unaware of the potential confusion this creates in the working interface, where nurses are already stressed and finding it difficult to cope with ever-changing medication dosage forms, names, labels, and appearances. 

Outsource Home - outsourcing to low cost supplier(s) at home... 

These factors make 125I the iodine label of choice for radiolabeling biological molecules. Its commercial availability from a number of suppliers at relatively low cost further adds to its popularity. Even though it has lower specific activity than 131I, iodine-125 still provides much greater sensitivity than 14C, 32P, 35S, or 3H in labeling biomolecules. In fact, the use of a radioactive iodine label can create probes that have 150-fold more sensitivity than tritiated molecules and as much as 35,000 times the detectability of 14C-labeled molecules (Bolton and Hunter, 1986). 

AFRO Essential Drugs Price Indicator. Nearly 300 essential medicines and dosage forms are listed. Details are provided by Member States and low cost essential drugs suppliers. Published by the Regional Office for Africa and the WHO Collaborating Centre for the Quality Assurance of Medicines, University Potchefstroom, South Africa. 

Low Cost-Reliable Supply. Maltodextrins and corn syrup solids carry a much lower cost than almost all other encapsulating matrix ingredients, They are produced both in the U.S. and in foreign countries by several suppliers, so they are readily available. When used alone or as one of a combination of encapsulation matrix ingredients, maltodextrins and corn syrup solids are an effective part of the encapsulating system. 

The roster of PPS suppliers in Japan is much larger than in the United States. Multiple market presences in Japan include TOPPS (Toray PPS, formerly TO—PP, which was a joint venture between Toray and Phillips) Dainippon Ink and Chemicals, Inc. Tosoh Tohpren Kureha/Polyplastics and Idemitsu. PPS marketed by Toray is sold under the Torelina trademark. Production capacity in Japan was estimated in 1995 at 11,400 t of neat resin per year. At the time that this capacity was created, the situation in Japan was characterized by overcapacity and underutilization. Additionally, further PPS capacity was brought on by Sunkyong in Korea, which is marketing a low cost PPS product. Although excess PPS capacity still exists in Japan, market growth has narrowed the gap between supply and demand. 

Here, too, suppliers in low-cost countries have proven to be a particularly important source of improvements in creating innovative and highly effective products at low cost, leveraging low cost input and capabilities to develop attractive products for local markets. 

Meanwhile, lower monohydric alcohols were first made by the oxo process. These included n-propanol, n- and isobutanol and amyl alcohol. In PVC, only one of these assumed any importance -n-butanol - mainly in butyl benzyl phthalate. Dibutyl phthalate (DBP) was by this time considered too volatile for use in PVC in the U.S.(10). The so-called coesters - butyl octyl phthalate (BOP), butyl isodecyl phthalate and butyl cyclohexyl phthalate -have been on and off the market for many years but never achieved major success in the U.S. Dibutyl phthalate/DOP blends and BOP have probably been most successful in Japan. Diisobutyl phthalate is used in Brazil and other South American countries even today, because of its low cost. BOP is also offered in Europe, but as in the U.S., it has not been a major success. One reason could be the wide variability of composition from different suppliers. In fact, some BOP s were merely physical blends of DBP and DOP. 

Zinc is found in a relatively low abundance in nature, but has been known for a long time due to the ease with which it is isolated from its ores. Despite the low occurrence, the ease of isolation results in today, zinc metal and zinc salts being available at low cost from the usual chemical suppliers. 

Raw Materials Sourcing. There was relatively little problem in sourcing 5-bromoacetylsalicylamide (in-house) or dibenzoyl-(+)-tartaric acid (large tonnage Italian source). Although RS-l-methyl-3-phenylpropylamine was available at low cost ( 10-12/kg) in tonnage quantities (Germany and Holland) no supplier of the R-amine VIII was known. 

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