Tuesday 17 September 2013

The Advantages That Surplus Chemical Buyers Provide

By Dawn Williams


Every so often, there is redundant stock and products that just lie idle in production, distribution and manufacturing companies. This occurs despite steps to cut on redundant inventory. For the manufacturers, this makes for difficult decisions concerning re use, sale and disposal. Fortunately, there are companies that are at hand to handle this task. The surplus chemical buyers do come in handy to clear up such stock, thus opening up storage areas for more useful undertakings.

One of the primary sources of excess chemicals is order cancellation. After a client makes the order, then fails to collect for a number of reasons, the company has to find ways of disposing it. The specificity of some chemicals sometimes makes it harder to resell to other clients. This is where the excess chemical purchasers come in handy. They will handle the collection from your industry then dispose of it as they deem fit.

Sometimes, the supply of certain products may far exceed the demand. The result is expiration of most of the stock. In other instances, the product may have been recalled or discontinued due to various reasons. The company already has invested time and resources in the product manufacture, therefore there is need to earn from them regardless of their state. In such situations, they will resell the products for reuse, repackaging or breaking down to extract the various useful constituents.

If a company has redundant stock at hand, the main challenge is to seek the right buyer. Fortunately, the purchase of such products has caught on, with numerous companies getting on board. Simple networking can source the right party to collaborate with. Typical purchasers include similar companies that use the products in their operations, and companies that purely deal with purchase and resale of such products.

One among the primary advantages that the purchasers provide is the handling of the redundant stock and warehouse inventory. Take note that the inventory, even if it is not under use, forms part of the expenses. These include the day- day handling and storage. These include fragrances, dyes, paints, lubricants and others. By helping you take care of the redundant stock, they will free up space for more useful inventory.

The success of such a venture, however, requires quite an investment. As the buyer, you should have the necessary handling and transport equipment, all backed up by skilled personnel. The seller benefits highly from such a system. It greatly reduces and eliminates any cost associated with the transport and handling.

Various environmental organizations and government agencies have established rules and regulations governing the use and handling of chemical-based products. Some products, especially those based on caustic and acidic elements, require controlled, and costly disposal methods. With a well-established buyer, the seller is exempt from such binding commitments. They will be able to continue with their operations without investing resources to cover such excesses.

The surplus chemical buyers usually purchase the chemicals at a lower price than the current market rate. This allows them to cover the transport plus redistribution costs. This is also beneficial to the seller. The arrangement allows them to make money from otherwise redundant stock. The money so gained is then used to pursue ventures that are more profitable. To be on the safe side though, both parties should be duly registered, insured as per the set rules and regulations.




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