The main difference between trading and purchasing is that during purchasing Avidite acts on clients behalf and is not physically selling the goods, therefore Avidites liability is also limited. Supply origin like factory names, location, managment information, a.s.o are all disclosed to the client. Price negotiations take place on your behalf or in most cases direct. Avidite support focuses on sourcing, factory relationship management, goods handling, inspection and claim management. Collaboration is settled in a way of an extended purchasing department and costs do only arise in case of activity. The purchasing option is far better then hide and seek trading, because transparent information exchange build the basis for successful and collaborative business relationships based on mutual benefit.
For further information please do not hesitate to contact your Avidite local network coordination
purchasing@avidite.com
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Application
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Purchasing
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Production Control
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Supply Network Management
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products
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one – few
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one – few
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many
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component knock down
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none
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yes
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yes
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part knock down
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none
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yes
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yes
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R&D efforts
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none
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yes
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possible
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moulding and fixed asset investment
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none
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yes
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possible
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supplier intration
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none
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yes
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yes
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certification procedures
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less likely
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likely
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likely
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product
complexity
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low – medium
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medium – high
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medium – high
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suppliers
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one or few
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few – many
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many
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locations
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one or few
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few – many
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many
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contracting
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direct or indirect
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mostly indirect
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indirect
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pricing
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Ex-Works, FOB, CIF
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mostly CIF, D-to-D
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CIF, D-to-D
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price negotiation
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direct or on behalf
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direct or on behalf
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direct or on behalf
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quote currency
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US$, EUR, RMB
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US$, EUR, RMB
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US$, EUR, RMB
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Avidite Financing Support
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possible
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possible
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possible
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Avidite Business Involvement
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only operational
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operational, tactical
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operational, tactical, strategical
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input cost analysis
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none
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yes
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yes
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sourcing
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yes
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yes
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yes
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supplier, product bench marking
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yes
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yes
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yes
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inspection & testing
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yes
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yes
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yes
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claim mgt.
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yes
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yes
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yes
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information sharing degree
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medium
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high
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high
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production control
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none
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-
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yes
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integrated logistics
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optional
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yes
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yes
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purchasing
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-
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yes
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yes
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it is none
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