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In the industry of manufacturing, the process of sourcing pertains to the search of a supplier that will aid you in meeting your firm’s goals and objectives. These are often measured in terms of quality, costs, and deadlines, regardless of nature – be it a building materials supplier or even a tea and coffee supplier. Unfortunately, given the rapid landscape of production needs and their evolutions, finding the right industrial partner at the right time can be an issue. 

The process is easier said than done; after all, how do you find the best suppliers? This simple guide will address that question with a simple lesson on the sourcing processes. Let’s begin!

The sourcing in four steps

In the industrial production field, sourcing pertains to finding suppliers who meet the challenges of costs, quality, and deadlines encountered by most firms. To successfully execute sourcing, strategies must be put into place. Here are some of the realities and steps it encompasses:

• Step 1: The establishment of its panel – This pertains to the identification and qualification of suppliers who are best suited for the requirements.
• Step 2: RFQ (Request For Quotation) consultation – This is where a request is relayed, and the analysis of responses ensues.
• Step 3: The appointment of the supplier – This is where the choice for the best suitable supplier is finalised.
• Step 4: Relationship with the supplier – This encompasses information sharing and circulation, along with QCD and production management, among others.

How to successfully identify the best industrial partners

As mentioned, your strategy is the cornerstone of every aspect of your sourcing process. Even with the four-step process at hand, choosing the best industrial supplier calls for well-informed decisions. Here are some steps to know your business contact even better:

 1.  Identify your goals

Based on the state of your industry, does your organisation need to adapt to standards? Is there a need for the implementation of new production methods in terms of sustainability and other strategies? These are challenges your firm may be facing, and identifying your goals that surround those issues is necessary. Should you wish to find the right industrial partner, identifying what you need is imperative.

2. Match the supply and demand and examine their businesses expertise

As you ponder on potential candidates, carefully consider the details of the products they wish to offer. From there, examine whether or not they match your internal needs. Moreover, understand that there is a risk involving supplier searches. For one, their credibility and business expertise remain unknown. Nevertheless, there is a way to reassure your needs and lower the risk: obtain certifications (ISO certifications). This creates a foundation for trust, which can be further built through word of mouth affirmations and reviews.

3. How well do they communicate with you?

As the need for suppliers grows ever more demanding, clients continue to look for new ways to communicate with providers. That said, technical support and customer service should be crucial to your decision-making process. Liaising and closing deals is one matter, but their approachability and accessibility say quite another, more so than any costs.

Conclusion

While a simple guide, the rational elements that will help you make well-informed decisions are present. As you course through your list of potential suppliers, remember that there are more than costs at play – your goals, for instance, play a critical role in finding the most suitable partner. What they offer and how they manage their communication also matter, as these assure you of their credibility and security. Although it entails much work, finding the right supplier will surely send your business operations growing into new heights.

Are you looking to deal with an online spot marketplace in the UK? Get in touch with us today to see how we can help!

If you’ve gotten yourself acquainted with a commodity marketplace, you might’ve heard of the term “spot market.” Most likely, you’ll have heard of this when also hearing about commodity purchases. Well, what is the spot market? The “spot market” is a term that relates to the commodity marketplace and is pointed at the price at which you, or anyone else, purchases a certain commodity.

That said, if you’ve never dealt with bulk commodities like oil, chances are you’ve never heard this term before. However, we’ve put together a simple guide to let you know the basics on spot markets in the commodity marketplace. But before we start on that, let’s talk about commodities first:

What’s a commodity?

Commodities are the items you buy and sell in a commodity marketplace. It can range from products like soybeans and corn, all the way to other, more essential products like fuel and oil.

In these markets, there are a few ways you can purchase the items at specific prices. First, you’re given the ability to use forward contracts. Forward contracts allow you to agree on a set price to be paid in the future for a certain number of items, no matter the actual cost of what you’re buying. This is useful in many scenarios, such as oil buying. If you’re purchasing a set amount of fuel to last the next year, you can set a certain amount and pay a certain price, meaning that you’ll get what you pay for, no matter if the value of oil rises or falls. 

However, there are situations in which you might need to buy extra fuel because you didn’t buy enough. This leads us to the second way to purchase the commodity, which is to buy it on the spot market.

What is buying on the spot market?

Simply put, buying on the spot market means that you’re purchasing according to today’s price. For example, imagine you’ve set a future contract for fuel at $10 per barrel. Unfortunately, you find yourself needing more fuel a few months later, but the price of a barrel is now $12. While you’re still receiving the $10 barrels you’ve paid for, any extra fuel you buy will be charged at $12 or whatever the price is on that specific day.

While this happens occasionally in commodity markets, it is more common in spot commodity markets in which people like you can quickly purchase small amounts of raw ingredients to ensure that you have enough supplies of a certain material to keep your business running.

Spot markets versus forward contracts

So, what’s the difference between spot markets and forward contracts? Well, while we’ve pointed out that forward contracts are geared more towards future purchases, spot market commodities are purchased, well, on the spot. Additionally, spot market prices are generally much higher because when you find yourself needing more fuel, chances are other people also need it, putting the commodity in high demand.

Remember, though, that spot market prices aren’t always higher. It just means that the amount of the raw material you’re going to purchase is set at a specific price for that day.

Conclusion

If you find yourself dealing with the term “spot market,” you now know exactly what it means. Not only that, but now you know how to get yourself more of a specific raw material if you find that your future contract isn’t providing enough to ensure that your business is still in production.

Are you looking to deal with an online spot commodity marketplace in the UK? Get in touch with us to see how we can help.

Supplier relationship management (SRM) is one aspect of business that your company should have in place. As a business, you may be working with a handful of suppliers that provide you with raw materials or certain items. As much as possible, you have to establish good relationships with them, which can benefit you along the way. 

Unfortunately, it’s easy for some companies to take their supplier management for granted. Naturally, their utmost focus is on establishing good relationships with customers only. What many fail to realise is how building great connections with suppliers can be impactful to their business as well.

That said, here are four benefits that you can take advantage of having solid relationships with your suppliers.

1. Quality materials and timely delivery

If you want to make a dent in attracting customers and have high returns, there are two aspects you shouldn’t neglect—the quality of your products and the turn-around-time of delivery. These two factors can be impacted significantly if your suppliers fail to do the needful. As much as possible, they have to provide you with the raw supplies on time, and these materials should be of good quality. If you build good connections with these suppliers, not only will they prioritise your goods, but they will also provide you with superior materials.

2. Seamless production

In line with getting quality materials on time, it’s easy for your production phase to kick off. If there are delays in the delivery of your needed supplies, your business operation can have downtime, which can severely affect your overall production. When you set out to establish good relationships with your supplier, you won’t have to experience all these delays and challenges. Your business will always have a smooth operation and overall production.

3. Customer satisfaction

With timely delivery of supplies and seamless production, what can you expect from your products and services? You can expect quality products and timely delivery of services as well. What does this mean to your customers? They will be happy campers as well, knowing that your business does deliver way above and beyond. You will be known as a company that values customer satisfaction. The supply may just be the initial step of your process, but it can have a ripple effect on your overall business success.

4. Help and support

What’s good about having solid relationships with your suppliers is the utmost support. Both parties no longer see each other as clients that need something from each other. You both realise that you are business partners and that your relationships with each other are crucial to each other’s success. Should there be challenges and problems along the way, you’ll be providing help and support for each other.

Conclusion

Many businesses tend to neglect supplier management. Know, however, that a good relationship with your suppliers is just as important as fostering good relationships with your customers. As outlined above, many benefits come from having solid relationships with your suppliers. All these valuable merits can contribute to the overall success of your business.

We specialise in online commodities, raw materials, and industrial supplies. If you are looking to have trusted suppliers and build good relationships with them, contact us today to see how we can help!

When we talk about commodities, we think of goods or products that we need in our day-to-day life. These products can be categorised into two: hard and soft commodities. While hard commodities refer to products provided by our natural resources such as oil and metals, soft commodities are flexible products such as livestock and agricultural goods.

But the question is, how do we go about procuring these goods or products? In the past, we resorted to commodity trading by exchanging stuff such as spices, fruits, vegetables, and livestock. Today, we trade commodities through the use of money. That is where the commodity market comes into the picture.

The commodity market allows us to trade vital things such as precious metals, energy, oil, spices, and livestock, among others. These products can be accessed through traditional holdings, contracts, exchange-traded funds (ETF), and associated markets.

In this blog, we’ll cover the five benefits of a commodity market. Keep on reading to learn more!

Improvement in product quality

The commodity market aims to improve the quality of products being traded. This goal is achieved through the existence of warehouses with grading facilities. The standardisation of commodity trade is set in place to ensure quality products, and along with this is the certification issued by the exchange-certified warehouses.

Price discovery

The commodity market allows easy discovery of prices. Pricing is set based on the data and information on specific markets, the demand and supply balance, weather forecasts, government policies, environmental factors, and the position of buyers and sellers making product exchanges. The goal is to set a fair value of price per commodity for proper trade execution.

Hedging

Price risk management is vital to the overall equation in the commodity market. For the most part, risk management is attained through the most common method known as hedging. This strategy takes an equal but opposite position in the futures market to protect businesses from an adverse price change. This particularly benefits farmers, processors, merchandisers, manufacturers, exporters, importers, and more.

Competitiveness in export

The commodity market ensures competition in exporting products. For one, exporters can hedge their price risk and improve their competitiveness through the futures market. This market allows exporters to hedge their proposed purchase by temporarily substituting for the actual purchase. Without it, the commodity market will have time-consuming and expensive physical transactions.

Accessibility to credits

What’s good about the commodity market is how it allows businesses to have access to credit. Easy credit accessibility has brought financial institutions’ confidence in proper risk management set in the commodity market. Without risk management, marketing and processing commodities can be a risky business activity to fund. Through proper regulation and full compliance, banks will be more confident than ever in funding commodity-trading companies.

Conclusion

There are valuable reasons the commodity market exists. As shown above, the commodity market ensures product quality, price discovery, pricing management, export competitiveness, and credit accessibility.

Ultimately, proper trading implementation, regulation, and compliance are set in place for the good of the participating businesses and the entire commodity market.

We specialise in online commodities, raw materials, and industrial supplies. If you are looking to optimise your supply chain in the commodity market, contact us today to see how we can help!

Business owners deal a lot with their suppliers. Suppliers are a part of a business’s success, which is why it’s essential to establish good relationships with them. When you find reliable suppliers, you need to take care of them. 

But first, let’s talk about how suppliers impact your business. 

Suppliers Impact the Quality of Your Products or Services

Whether it’s a machine part, a basketful of ingredients, or a sack of garments, what your supplier brings to you will have a considerable effect on the quality of your products and services. Therefore, you need to seek a reliable supplier. 

Suppliers Affect Your Timeliness

If a supplier fails to deliver on time, it would have a domino effect on your business operations. You will be late on your deliveries as well. A supplier that provides a quick turnaround is one of the primary keys to minimise your inventory and to ensure that your clients’ needs are met on time. 

Suppliers Can Contribute to Your Product Developments

Are you developing a new product? Whatever product idea you may have, your suppliers have a significant contribution to it. 

These are some of the reasons suppliers play a significant role in businesses today. That is why you need to take the time and effort to build good relationships with your suppliers because they will be working alongside you.

Fostering Good Relationships With Suppliers

Here are some tips to help you cultivate good relationships with your suppliers: 

• Talk to them

If you only talk to your suppliers regarding business, then it’s time to change that. You need to reach out to your suppliers even if there’s no business involved. A simple “How are you?” or sending them some delicious pastries can go a long way relationship-wise. 

• View them as partners

Business owners tend to look at suppliers as vendors, which sets a perspective that hinders a potential relationship. It helps to consider suppliers as partners that you work with, as this mindset will help you optimise relationships.

• Share product forecasts with vendors

There are times when businesses fail to share their product forecasts with their suppliers. It then leaves suppliers in the dark. By sharing your product forecasts with your suppliers, you both get on the same page when it comes to the volume of commodities that you need over the next phase. 

• Always be honest

Honesty can do wonders for your relationships with suppliers. Should something go wrong, a business should easily reach out to the supplier and explain the situation. For example, if the quality of the merchandise is lower than expected, a business owner should not sweep this issue under the rug. They need to be upfront about it to their supplier. 

Conclusion

Suppliers play a significant role in your business operations, so make sure not to neglect them. Strive to find the best suppliers in your industry, and once you do, keep them by working on building good relationships for the long term. 

If you’re looking for suitable suppliers for your commodities, it’s easy to find one today, thanks to the wonders of the internet. Check out BLK Global today.

The commodity market is a marketplace where people trade all sorts of different things, mainly raw or primary products, such as wheat, oil, and gold. While the definition we’ve given you applies to all commodity markets, do note that they’re not trading the same things. 

How Commodity Markets Work

Prices in commodity markets are dependent on many factors, such as supply, costs to collect those items, and so on. Generally, it works like any other market, where people come to buy, sell, or trade.

One defining aspect of the commodity market, however, is that a buyer is given the ability to set a future price of a commodity, securing it in the present time. In other words, the buyer can secure a futures contract. For example, if an individual wants to purchase wheat at a specific price in the near future, he or she will pay that exact price no matter what when the seller delivers. It means that, whether the general cost of wheat rises or falls, the buyer is not necessarily affected by it after the agreed contract.

If you wanted to purchase a commodity like oil, you can set the price now on how much oil you want and when, and if both parties agree, you will pay the amount you specified when you receive it at a later date. Whether there is an ongoing economic event, forcing products to either shoot tremendously low or high, you’ll still pay the same amount on delivery date.

The Types of Commodity

While different commodity markets might be selling various commodities, they can all be placed either under these two categories: soft commodities and hard commodities.

Soft commodities are commodities that are usually unlimited and are not affected by factors relating to international politics that are usually influenced by geographical factors. Instead, the prices they come in are affected by the given conditions of the environment, such as weather or any other natural events. Soft commodities, then, include products relating to agriculture, such as barley, wheat, rice, and the likes. They also include livestock like chicken, pork, and beef.

On the other hand, hard commodities are limited in reserves and are affected by geopolitical factors. It means that, when there is an economic crisis or boom ongoing in the world’s general economics, the prices of these products will be affected profoundly. These products are also taken from the environment, utilising different procedures like mining, which, along with geopolitics, also affect the prices of these products. Out of these processes come the products, such as copper, rubber, gold, and oil.

Final Thoughts

Commodities are similar to other assets like bonds. The differentiating factor for commodities, then, is the fact that they’re tangible. That said, commodity markets are places where buyers and sellers can come together to buy, sell, and trade different products. At the same time, these markets give buyers and sellers the chance to set the pricing of the commodities.

If you’re looking to purchase commodities online in the UK, get in touch with us to see how we can help.

Commodity trading is said to be one of the oldest professions in the world. In the past, our ancient ancestors traded goods in a different light as compared to the commodity trading of today. These commodities included food and culinary types, such as spices, vegetables, and livestock. They also exchanged material products, such as gold, seashells, and natural stones. 

Eventually, the currency was developed through time. Today, we buy and sell commodities through the value of money. Additionally, over the past 20 years, the global commodities marketplace has evolved into what it is today — an aptly called ‘supercycle,’ which is the rise and fall of products relative to their prices.

In the following section, we’ll cover what the commodity market entails, and more about its commodity types, tradeable commodity categories, and trading standards.

Types of commodities

In a nutshell, commodities are sorted into two parts — hard and soft. While hard commodities pertain to natural resources, soft products refer to agricultural goods and livestock. Let’s take a look at each:

• Hard commodities: They are said to have a long-standing position in the economy. A perfect example of this is oil, which requires to be traded and exported to meet every country’s oil demand. 
• Soft commodities: They are more flexible as a product. Think about the likes of livestock and agricultural products because they are always in demand.

Ultimately, understanding the difference between hard and soft commodities can help you know which one is worth trading.

Categories of tradeable commodities

At this point, you now should have already been dealing with commodity trading. Nevertheless, it’s best to have a deeper understanding of what tradeable commodities include. Know that there are several specific categories of tradeable commodities, such as the following::

• Metals: These include gold, silver, platinum, and copper.
• Energy: These consist of crude oil, heating oil, natural gas, and gasoline.
• Livestock and meat: These are lean hogs, pork bellies, and live and feeder cattle.
• Agriculture: There are corn, soybeans, wheat, rice, cocoa, coffee, cotton, and sugar.

Knowing these categories gives you a basic understanding of what trading entails and what specific category you would like to invest in.

Commodity trading standards

If you want to successfully engage in trading commodities, every trader is required to abide by the rules and regulations that are set in place for commodity trading. An excellent example is how the government regulates safety standards in the food-manufacturing industry. Of course, you would want to trade in agricultural products and trade livestock that aren’t sick.

Ultimately, know that each country has its own set of laws and regulations, as far as trading commodities are concerned. For this reason, familiarize yourself with them before setting out on any investment plans.

Final words

The global commodity marketplace has drastically evolved over the years, which is why it cannot be denied that there are many complexities in the commodity industry. If you run a business or deal with trading commodities, you will have to dedicate a large part of your life to understanding its complexities, complying with the standards, and keeping up with the changing demands of the industry so that you can thrive and succeed.

BLK Global is specialized in online commodities, raw materials, and industrial supplies. If you are a manufacturing business, a wholesaler, or a retailer looking to optimize your supply chain, contact us today to see how we can help!

Pursuing a construction project can be quite costly. There’s just a lot of things to consider financially—labour cost and materials primarily. While you want to have a successful construction project, you’ll do what it takes to save up on the overall cost. One effective way to do so is to reduce the cost of building materials. It’s possible to save money on building materials; you just need to execute the right financial tactics. That said, here are five tips on how you can save up money when buying construction materials.

1. Purchase materials in bulk

There’s a huge advantage in purchasing materials in bulk or wholesale. Manufacturers can give you a much lower price as compared to buying in small quantities or purchasing from single retailers. 

First, single retailers require you to buy a minimum quantity for a discount, but that’s not the case with wholesalers. Second, it’s more practical to buy most materials in bulk than split them, which can incur other miscellaneous expenses. That said, sort the materials into separate sections and estimate the cost for each. From there, assess which ones are available in wholesale and which ones aren’t.

2. Invest in easy-to-install materials

Investing in easy-to-install materials will help you save money, time, and labour. You won’t have to shell out a considerable amount of money for the extensive labour services performed. For instance, consider various electrical products that are easy to install, such as electrical outlets, light switches, electrical boxes, electrical conduits, and motor controls. However, make sure you buy simple yet quality materials, so as not to have issues in the future.

3. Opt for prefabricated materials

Know that prefabrication is the assembly of different parts of the building at the manufacturing unit. The parts are then transported to the actual construction site for the entire assembly. It’s best to choose these custom-made parts of a building for various reasons. For one, modular construction is a lot more affordable than traditional construction. Two, it requires less time and reduces the labour cost. Overall, you can save money on construction financing, raw materials, and labour.

4. Negotiate with a network of suppliers

It’s best to deal with a network of trusted suppliers for a handful of reasons. For one, you won’t be shortchanged in terms of the quality of materials being supplied. Two, these suppliers can provide you discounts as their much-valued clients. All you have to do is to negotiate for the material costs and even ask for free delivery. In most cases, they will comply with the request, but you have to ask.

5. Set out good payment terms

Establishing good credit with suppliers can make all the difference when purchasing materials. It’s best to apply for credit terms with your material suppliers. Some suppliers provide forms of trade credit where you are bound to pay within 15, 30, or 60 days after the materials are delivered. Such payment terms can be a good idea, depending on what works for you. Who knows? The same suppliers may even offer discounts that will help you save money.

Final words

It won’t hurt your construction project if you know how to reduce the cost of buying your building materials. As long as you don’t compromise the quality of the materials being purchased, then you’re on the right track. 

That said, consider the five practical tips outlined above—buy materials in bulk, go for easy installation, opt for prefabricated materials, negotiate with suppliers, and set out payment terms. All these will ensure cost reduction and a successful construction project.

If you’re looking for a building materials supplier in the UK, get in touch with us to see how we can help.

More fuel companies have emerged in the UK to compete in the tight oil and gas industry. Today, price is no longer the only factor that customers must look for. An ideal fuel supplier must be competitive in terms of services as well. 

Fuel companies have different strengths and weaknesses. While others offer the cheapest deals on the market, some companies focus more on renewable energy and corporate social responsibility. Every customer has different needs as well. 

To find the fuel supplier that best fits one’s needs, here are the top three tips in choosing the right one.

Consider the company’s prices compared to the market rates

Finding a good deal means checking for the best prices on the market. Most consumers select their suppliers with pricing in mind. It is best to make a price comparison template to plot the market rate of different fuel companies. One way to do this is to check each company site. You can also check a price comparison website that reflects energy prices within one page. 

Check the reputation of the fuel company

A reliable fuel supplier must have proven experience and expertise in their line of business. It is not enough to have low prices alone. Instead, they must be known for providing excellent customer service and timely delivery of products or services, as well. It is also helpful to see the mission and vision of the company, as well as its brand value. 

While looking up their brand, try to read about their corporate social responsibility efforts that enrich the community. Aside from being professional, a good company must also be known for humanely running their companies.

Look for a fuel company that offers public transparency

Before switching to another fuel supplier, it is best to check if the new supplier has public transparency. Every customer has the right to know all relevant information about the company. Understanding this relevant information aims to protect consumer rights. Customers must be wary of companies that are too secretive with their data. 

Some of the necessary information that suppliers must disclose are the total contract price, terms, or mode of payment. The company must also advise the customer in advance regarding what happens in case of contract termination and if there are corresponding termination fees. 

Conclusion

Research and groundwork go a long way in helping the customer make more educated decisions. However, looking for the right fuel supplier is quite overwhelming, considering that there are many companies to choose from. Luckily, there are online platforms that provide a concise summary of each company. 

BLK Global is a leading online marketplace that offers a wide selection of raw materials and industrial supplies. It is an online avenue that aims to connect buyers, sellers, and shippers around the world. It is a place where customers have the chance to search, filter, and choose the materials that they need, as well as compare their market prices. 

If you’re looking for the most convenient and reliable platform where one can find the perfect fuel supplier, connect with BLK Global today. We’re happy to help.