Wednesday, January 28, 2009

Its an interesting dilemma:

You run a production facility manufacturing widgets. You have five production lines, six people per line and run two shifts. One of your responsibilities is making sure two trucks are full every shift.

You have received five quotes for your only shipping box: a RSC 12 1/2 x 13 x 12 1/2 - 32ect kraft. no printing qty T/L, every day - Five manufacturers bid on that RSC. The quotes range in price from a low of $190 per thousand to a high of $270 per thousand. Which one do you choose?

You better choose the manufacturer with the highest on time percentage. Imagine if the packaging company "forgot". It happens. Thirty people are now idle.

But how on earth can you verify manufacturer claims?

Answer: Manufacturer Ratings. cBoxBid.com gives every buyer the opportunity to rate manufacturers on price, delivery, quality and customer service. So when your looking at price, look at their ratings also, it may be worth .03 cents.

Monday, January 26, 2009

Check the Facts -

Fact - purchasing professionals are under pressure for cost reductions.
Fact - there is an oversupply of raw materials and plant capacity.
Fact - manufacturers are keeping a keen eye on quality to keep customers happy.
Fact - There is no difference between a 32 ect RSC manufactured by Rock Tenn or Smurfit Stone.

Or is their?

If you said price, your correct.

cBoxBid.com is the only e-commerce tool that lets buyers constantly source for a better PRICE.

  • Identify and negotiate with a broad range of qualified manufacturers thanks to Manufacturer Ratings.
  • Remain anonymous in the buying process.
  • Manufacturers are ready for your challenge.
  • Negotiate 5% to 20% price reductions.
  • It's non binding. Colloborate before signing terms.

Tuesday, January 13, 2009

buyers RFQ quantities and warehousing


Tom Barszczowski, of Packaging Concepts and Design http://www.pcdpackaging.com -
emailed me with a great question regarding quantities and how to quote them.

When buyers create an RFQ, they are asked three questions that are indicators of how a manufacturer should price:
1. Warehousing Required
2. Quantity to be Quoted
3. Frequency ordered

If you look at the attached screen shot, the buyer requires warehousing, the quantity is 12,000 pieces and the frequency of the order is bi-monthly.

Simple right? Quote 12K pieces. Run 12K deliver 6k, warehouse 6k. Only if the buyer hits the warehousing button, and most may not. And this is the foundation of Tom's question and an oversight on our part.

We will rewrite these lines so that buyers can indicate the entire quantity of the production run and the shipment quantity on a monthly basis.

Until then, all RFQ's have a quantity, and if the frequency ordered is more than once a month, its safe to say, warehousing is required.

Marc