Category Scan: Organic Preservatives -- Procurement Best Practices

Length of fixed-price contracts largely depends on the volume procured. Food & beverage companies engage in long-term contracts, and relatively smaller buyers from personal care and pharmaceutical industries are offered short-term contracts.

Contract Length : Beverage makers are the largest buying segment of preservatives. Length of contract largely depends on the volume procured.

Supply Base : Buyers split their procurement volume across 2–3 suppliers to leverage on tight competition and benefit from competitive pricing.

Supplier : To reduce cost, maintain consistency in quality and to measure supplier performance, buyers generally procure from manufacturers.