Spot contract

What is the right integrated spot/contract split in sales and procurement ... 

How can spot/contract sales and procurement flexibility rules be integrated into negotiation and collaboration agreements ... 

FIG. 5.3. Shows tlie effect of applying local heat to a thin slice of glass tube. At a radial section opposite the heated spot, compressive shesses are set up in the outer layer of glass, and tensile stresses are set up in the inner layer, as shown in (a). These stresses disappear when the heated spot begins to soften. Wlien tlie glass is allowed to cool the heated spot contracts and sets up compressive stresses in the... 

PRICING AND REVENUE MANAGEMENT FOR BULK AND SPOT CONTRACTS... 

Spot (cash) and forward contracts both involve two parties entering into an agreement to buy and sell a particular commodity at a negotiated price. However, whereas the spot contract involves immediate delivery, the forward contract specifies delivery at some given future date, and at a predetermined price. Where price volatility exists, market participants face a great deal of uncertainty over the future level and behaviour of prices. For both parties to a transaction, forward contracts eliminate the risk of adverse price movements, and because uncertainty is reduced, consequently allow significant transaction, production and inventory cost savings. 

Whereas a spot market has always existed for oil, gas sales traditionally require a contract to be agreed between the producer and a customer. This forms an important... 

Quality Audit. Another important responsibiUty of quahty assurance is the audit function. Using the quahty audit as a tool, QA can monitor the operation of the manufacturing faciUty a toU, ie, contract, manufacturer or raw material suppHer to assure that written procedures are in place and that there is documentation to indicate the procedures are being followed. Properly executed audits allow QA to spot potential weakness in the quahty system that could allow errors to occur. Once identified, these weaknesses can then be corrected before they result in nonconformance. 

Price Indexing Some gas prices, by contractual agreement, reflect changes in the spot, futures or other markets, such as heating oil. Price indexing is often used to reflect that the parties to the contract believe the price to be paid is related in some way to the particular index used. 

Large vessels and equipment operating at extreme temperatures exhibit large expansion or contraction movements. Any insulant specified for these applications should be capable of a sympathetic movement such that it will not cause itself or any cladding to burst, nor should it produce gaps that lead to dangerous hot spots in the cladding system. 

Therefore, before a final wall structure can be selected, it is necessary to conduct a combined strain analysis in both the longitudinal and hoop directions. This analysis will consider thermal contraction strains, the internal pressure, and the pipe s ability to bridge soft spots in the trench s bedding. In order to do this we must know more about the inherent properties of the material we are dealing with that is a structure made up of successive layers of continuous filament-wound fiberglass strands embedded within a plastic matrix. We must know the modulus of the material in the longitudinal direction and the... 

Francis CA, Poincelot RP, Bird GW (eds) (2006) Developing and extending sustainable agriculture a new social contract. Haworth Food and Agric. Prod., New York, USA, pp xxii, 367 Frank ZR, Katan J, Ben-Yephet Y (1986) Synergistic effect of metham and solarization in controlling delimited shell spots of peanut-pods. Crop Prot 5 199-202. doi 10.1016/0261-2194(86)90102-X... 

The sales strategy needs to decide what product to be sold in which sales market representing the sales location in the value chain network. New markets needs to be evaluated for their attractiveness and the own competitive position with respect to existing products or the capabilities in the development of new products for the respective demand. Sales business rules include decisions on the strategic share of contracted business volumes vs. flexible spot business volumes. These business rules often depend on sales channels and frame contracts with customers. The sales strategy can be matched with classical marketing mix decisions on products, prices, promotion and communication, as well as sales channel decisions. 

Result is a sales plan to be disaggregated on the individual customer basis. Sales volumes different to demand volumes are possible if sales flexibility in spot businesses exists compared to sales contracts that need to be fulfilled. 

Purchase order management needs to ensure stable replenishment with raw materials or other procured products for production or trading purpose executing negotiated contracts or spot plans. 

Prices are analyzed in regular market surveys where producers, consumers and merchants across a region are contacted to gather current price level. Results are published in magazines as shown in the following example from the ECN magazine (Todd 2004) or in web-based analysis services. Here, the typical differentiation in spot and contract gets transparent as shown in fig. 38. 

European spot on last European contract US contract... 

The customer number is few mainly smaller than 500 customers compared to mass business with often more than 1 million customers or consumers. Customer types are external and company-internal customers buying on basis of transfer price agreements that are delivered with priority. Therefore, the customer relation is spot and contract-based with sales flexibility for a spot relation and fixed sales for contract relations. Customers can also have mixed spot and contract agreements depending on the product. 

Consequently, sales flexibility exists with respect to total sales quantities and average prices for spot sales, while contract sales quantities and prices... 

With respect to supplier structure and type, few suppliers are used and suppliers are internal and external business relations with suppliers are spot and contract. 

Procurement flexibility exists for spot quantities, while contract quantities are fixed. Prices are fixed in both cases. 

Summarizing, demand is not a given input quantity to be fulfilled in the traditional supply chain management sense but is defined more differentiated as a mix of fixed contract demand to be supplied and spot demand providing company a degree of freedom in making active sales target decisions. 

R13 - Contract and spot procurement planning procurement planning has to be differentiated into spot and contract in analogy to contract and spot demand. Raw materials are procured either based on fixed contracts or on the spot market (see also Seifert et al. 2001). Spot and contract prices can differ as illustrated by an example of Reiner/Jammemegg (2005), pp. 119 in the fig. 51. 

In analogy to the demand side, procurement contracts are fixed by quantity and price with the objective to ensure a basis volume of raw materials. Spot procurement supports company s flexibility requirements and the company can decide the spot procurement quantity with certain flexibility around the offered quantity. Price levels for contracts and spot business differ and are volatile in each period. Typically, companies operate with few key strategic suppliers for a respective product or raw material. Therefore, price-quantity models like in sales planning are less applicable. More often is the case that specifically commodity-type raw materials are procured on many-to-many exchanges, which is out of the scope in our case as described in section 3.2.6. If products are supplied by internal business units, transfer prices are applied following the contract procurement principles. 

Focus on demand forecasting and forecast accuracy rather than sales target achievement based on a differentiation of contract and spot sales... 

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