Operating supplies are supposed to be the convenience goods of business sector. They have short life span; they can be bought at low price and with little effort. Operating supplies help in regular operation of business firm, but they are not the part of finished goods. In other word, the goods which are needed in industrial production process but do not become the part of finished goods are called 'operating supplies'. Fuels like petroleum, coal, oily materials, grease, cleaning cloth, paper, pencil, carbon paper, type ribbon, ink etc. are the examples of operating supplies.
Price competition is found more in such supplies, because competitive goods are well standardized and graded. Branding or advertisement is rarely used. However, some producers give brand and advertise their products.
Features Of Operating Supplies
Per unit price of operating supplies stands low.
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Life span/durability of such products become short.
Operating supplies are purchased regularly.
Such goods/materials are purchased in little quantity.
Operating supplies are taken as convenience industrial products.
In the lack of operating supplies, production and operation of business firm gets interrupted and effectiveness does not come in office operation. Purchasing manager makes necessary arrangement for regular supply of such materials. They are bought from middlemen or nearby retailers. Operating supplies are purchased mostly in little quantity, in short time and with less effort.
Like consumer convenience goods, business-operating supplies are distributed or sold through several middlemen. The manufacturing firms of such materials widely use wholesalers, as per unit price of such materials stand low, consumer buy in little quantity and such supplies reach the hands of many users.
Price competition is found more in such supplies, because competitive goods are well standardized and graded. Branding or advertisement is rarely used. However, some producers give brand and advertise their products.
Features Of Operating Supplies
1. Unit Price
Per unit price of operating supplies stands low.
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2. Life Span
Life span/durability of such products become short.
3. Purchase Frequency
Operating supplies are purchased regularly.
4. Purchase Quantity
Such goods/materials are purchased in little quantity.
5. Convenience Industrial Products
Operating supplies are taken as convenience industrial products.
