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China is the largest manufacturing & consuming country in the world, 80% is domestic sales, writer sampling surveyed the trade method of stainless steel seamless tube and analyzed the purchasing method:
According to the research data, the main purchasing method contains diverted purchase, collective purchase, single purchase, designated purchase and negotiation purchase. Diverted purchase covers 49%, collective covers 36%, only 1% for negotiation purchase. Enterprises take different methods according to their demands, the purchasing amount is unpredictable, it’s very hard to form stable relationships. These enterprises adopt diverted purchase.
For collective purchasing, enterprises always purchase nearby, similar to diverted purchase，procurement amount is predictable, but they have something in common that is procure from Jiangsu, Zhejiang and Shanghai.
Enterprises which adopt single and designated purchasing always have strong production process continuity and stable demand. They have one or several long-term settled supplier; it’s good to enterprise themselves. |
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