| Purchasing Method Comparison |
Inneficient Model 1
Purchasing small quantity over 3 month time period
|
Inneficient 2
One Large Purchase
|
New Model
Place a 3-month blanket order with Phytochem and set a release schedule
|
| Jan. |
Feb. |
Mar. |
 |
 |
 |
| $20kg |
$25/kg |
Shortage Out Of Stock |
|
1 Large Purchase for Three Months
$10/kg
|
| 3-month Blanket Order |
 |
$9/kg
$9/kg
$9/kg |
|
- Spot Market Purchases make you dependent upon supply
- Small Volume Pricing = Higher Cost
- Inneficient multiple transactions from multiple vendors
- rices subject to fluctuation
|
- Stresses cash flow
- Cash Flowl Tied up in Inventory
- Warehouse Inneficiencys
|
- Attractive 3-month pricing for small quantity
- Increased Buying Power
- Avoid Supply and Pricing Risk
- One source One Transaction saves time and cost.
- No warehousing pressure
- Request Same Lot and Save on Testing Costs
|