Procurement of raw materials for production

Procurement of raw materials is a fundamental and strategic part of the supply chain of any industry. Choosing the right sources, high quality and competitive price can have a direct impact on the profitability and quality of the final product.

Production requirement analysis: Accurately determining the type and quantity of raw materials required for production.

Reviewing technical specifications and quality standards.

Identifying suppliers: Researching and identifying domestic and foreign manufacturers.

Using commodity exchange markets, exhibitions and B2B platforms.

Negotiation and pricing: Receiving pro-invoices from several suppliers and comparing prices.

Negotiating payment terms, volume discounts and delivery times.

Quality control: Conducting quality tests and compliance with production standards.

Using inspection companies (Q&Q) to ensure the quality of raw materials.

Contract and supply: Setting up a contract for the supply of raw materials with precise details of shipping, payment and late penalties.

Using a bank guarantee or letter of credit (LC) for foreign transactions.

Sources of raw material procurement:

Domestic markets: Purchasing from domestic producers to reduce transportation costs and support national production.

Using the commodity exchange to procure metals, petrochemicals, bitumen, and agricultural products.

Imports: Importing specific raw materials that are not produced domestically.

Using the export ring to purchase directly from foreign producers.

Commodity exchange:

Procuring raw materials such as catalysts, polymers, chemical fertilizers, and petrochemical products.