- Capsules and Tablets Contract Manufacturer
- Health Care
- Pharmaceutical Business Development Consultants
Purchasing Resources for Pharmaceutical Raw Materials
Bring Care Virtually Anywhere With Sprint® Mobile Healthcare Solutions.
Medical Practice Financing From Healthcare Experts - Apply Now.
Compare Healthcare Price Quotes and Save!
Download Pharmaceutical Raw Materials White Papers
Anything that is used or harvested in its natural form is called a raw material. These materials are then manipulated, refined or what have you until a completed, product is formed. This is typically true of any of the raw materials found on this planet, including minerals, precious metals, precious stones, crude oil, coal, charcoal, or anything else that comes from the earth. Even cane sugar is considered a specific type of raw material because it is in its natural state when harvested from the earth, and before it is turned into different kinds of granulated or powdered sugar.
These raw materials, once manipulated, are then compounded and sold or mixed without other materials in their natural states to produce different compounds, and they can consist of anything to form almost anything. If you want more information about the process of harvesting raw, natural materials from the ground or more information about the process of transforming the materials into other compounds, then Business.com can help as it offers a wealth of valuable information that can teach you about this subject. Simply click the links on the left and you will find the materials you need to study the natural raw material of the Earth.
No matter what raw materials you are buying, cutting costs is your best option to increase your profits. The easiest way to cut costs is by buying raw materials directly from a raw materials supplier. These wholesale distributors generally offer discounts on bulk orders, so it’s important to know what you want before placing your order. Ordering from a raw materials supplier also allows you to customize your order to fit your needs. Any type of company can benefit from purchasing from a raw materials supplier. Just make sure you adequately research and arrange shipping and transportation, especially if your items will have to travel through customs. In addition, making sure you know about worldwide economies will help you avoid losing out on potential product value.
No matter what your trade might be, the best way to increase profits is by cutting costs. Whether you are buying gold, silver, copper, wood, or any other type of material, the best way to minimize costs for your production business is through buying your company’s materials straight from a raw materials supplier. This can help cut any unnecessary costs because you will be buying direct and will be able to indicate the correct size and specifications.
Material Specification Benefits
Unlike buying from a retail store, you get to customize the exact size and quality of the material you need when you buy in a raw format. For example, according to the National Hardwood Lumber Association (NHLA), wood grades refer to the number and severity of the defects in a board. The following list explains the different wood grades (http://www.dummies.com/how-to/content/how-to-buy-wood-for-woodworking0.html): Firsts refer to perfect pieces of wood. Seconds will have some defects, but nothing that will affect most wood-based jobs. Most furniture is built using firsts and seconds (FAS for short). Selects will have more flaws and should be picked last for use on furniture.
Lastly, there are the “Four Grades of Common” (#1, #2, #3a, and #3b), which are used for less exacting projects.
Buying Raw Saves Money
When you buy raw, you buy from wholesale distributors who generally give most clients a discount for bulk orders. This also maintains the pattern of the cost per unit decreasing in inverse proportion to the size of the order. You can end up saving your company huge amounts of money before you have even begun building anything. This is extremely important for profit maximization.
If your company is involved with production of any kind, it is almost guaranteed that you can save money, obtain a higher quality product, and specify custom sizing for individual orders by switching to the purchase of raw materials instead of prefabricated sizes.
When buying raw materials, always be sure to buy the product in as large a volume as possible. With many raw materials, the price will not be discounted just because you are buying in bulk. The prices of certain raw materials (e.g., gold, silver, and diamonds) are very specific and will have little to no bulk discount incorporated into their sale. The discount comes from combining bulk items into one shipment. This saves money by reducing the total amount of shipments needed to complete the order.
Another pitfall to avoid is improper transportation of the materials. Flatbed trucks can be a great midsized option when buying raw materials in bulk. Many standard vehicles will either not have the size requirements or will not be able to support the weight of the materials. The weight of raw materials can be much higher than initially expected, and this, if overlooked, can cause problems with shipping prices.
All countries have different import and export laws when dealing with government customs. If you do not make necessary preparations for getting your raw materials through them, this can cause an incredible delay that could potentially slow production. Although many countries will have no problem with exporting a certain material, importing any item across borders will always have different limitations. The cost of crossing a customs border can also be extremely expensive since you have to declare the amount of money the shipment is worth. If you are shipping through multiple countries, these costs can increase considerably.
When researching the best location and price to purchase your bulk order of raw materials, always be sure to keep in mind the fluctuation of world markets and their effect on the cost of these materials. For example, China is one of the largest consumers of raw copper and can directly change the cost of it. China is not the only economy that can change the cost of raw materials. The cost of oil can be significantly changed by the needs of the U.S. or the Middle East.
The cost of raw materials to a business can vary depending on what the materials are, what quantity is needed, and how the materials will be delivered. In addition to the initial cost of the raw materials, you will also want to be aware of other expenses that may come with ordering raw materials, such as the costs of shipping and storing materials.
Buying in Bulk
Many businesses prefer to buy items in bulk or wholesale. While this may mean you will pay more per order, you will usually pay less per item. This is a good way to buy many raw materials. When you want to buy gold or silver, however, buying wholesale may not be your best option. Gold and silver are considered precious commodities. Because of this, buying gold or silver nuggets, coins, or bars is usually more expensive in bulk. The American Precious Metals Exchange (AMPEX) does offer gold at a discount when purchased wholesale. If you buy 10 or more units, you will save five dollars per ounce. Even at a discount, such a purchase would cost more than $11,000.
Once you have purchased your raw materials, you will need to have them transported to wherever they will be used. Many factors can affect the cost of shipping raw materials. One factor is the number of ships available. In January 2009, an article on Worldcement.com explored the possibility that the 146 capsize ships being added that year would reduce shipping rates to as low as $18,000 a day. This represented a decrease from the $93,197 a day shipping rates in June of the previous year.
While some factors decrease costs, others increase them. According to the same article, in July 2008, 14 shipping lines pushed to increase bunker fuel surcharges, starting in October 2009, in an effort to offset costs incurred by the industry. Also, Japan’s largest shipping line attempted to diminish the impact of profit loss by reducing its supply of ships and raising container rates between Asia and the United States.
Once your materials have arrived, if they cannot be used immediately, you will need to consider how to store them. You may need to invest in renting space at a storage facility. If your raw material is gold or silver, you may want to consider using a bank. If you have very large quantities of raw materials, you may need a warehouse.
Purchasing raw materials from a wholesale supplier not only allows you to cut costs but also helps you obtain materials of exact size and quality you need. You will most likely be offered a discount on your custom order when you purchase from a raw materials supplier. No matter what industry your company is in, this can help save your company a great deal of money, hence an easy way of maximizing profit. Remember that you must take into consideration the shipping and transportation costs. Not all types of trucks can transport all types of materials, so you must be sure to set aside adequate time to research the costs associated with the correct type of transportation for the products you are purchasing. You must also take the time to make sure your products will safely pass through customs. Worldwide economies are constantly changing, so be sure to keep up with the latest comparisons to obtain your products at the price that will make them most valuable to your company.