Delivering sustainability through supply contracts

Companies that buy houses for cash can help you sell your home quickly and without any hassle — they make near-instant offers and can close on your timeline. But there’s a big downside: you won’t get full price for your home.

Buyer Job Description Examples

Example 1

Purchases materials, supplies, and services to maintain monthly production requirements. Lead RFQ process and contract negotiations to deliver best cost and quality. Mentors other buyers / warehouse personnel as required.

Demanding, fast-paced position resulting from deadline pressures, simultaneous competing demands and changing priorities. The position works within a team environment, which requires communication with all levels of management and with other departments. Some travel is required.

Example 2

Turtle & Hughes is an electrical and industrial distribution company with about 900 employees. Our primary business is supplying and servicing utilities, electrical contractors, construction managers, and end-users. We strive to provide the industry’s most comprehensive range of services and solutions. This is how we have earned our ranking among the nation’s largest independent electrical and industrial distributors.
Turtle & Hughes is seeking a skilled Senior Buyer at our Los Angeles, CA location. This position has some remote capabilities as well.
The Senior Buyer will be responsible for sourcing, placing purchase orders, and replenishing inventory items in support of a distribution branch or location. This role may also include the supervision of other buyers with responsibility for ensuring the team meets all KPIs (savings, AP, order fulfillment, inventory optimization, rebates and pricing optimization). Additionally, a Senior Buyer may be assigned additional projects in support of the teams goals and objectives.
Essential Functions:

Example 3

Buyers are primarily responsible for the acquisition of company materials and services, management of vendors, and monitoring the flow of goods and services in our supply chain. Quality, on-time delivery, and cost management are critical to the success of the company, and are the main priorities of the Purchasing Agent.

Example 4

o Carry out the purchasing processes necessary to provide the proper goods and services, as required by operations, on a timely, competitive, and cost effective basis, such as (but not limited to) purchase order preparation and invoice discrepancy resolution.

Example 5

Example 6

Delivering sustainability through supply contracts

June 8, 2022 – This is the fourth and final article in this series. In earlier articles, we described rapidly emerging environmental, social and governance (ESG) legal and regulatory requirements. In this article, we describe ways for buyers to meet those requirements in their supply chains.

Doing so will be challenging. Supply chains are already optimized for least cost, including as to the manner of production. ESG change increasingly requires changing the manner of production. Buyers generally have limited data on the manner of production or its cost. For suppliers, changes to the manner of production may increase cost, violate other agreements, or create other risks.

There are, however, opportunities. Technology is increasingly making it easier for technical, operational, user and business stakeholders to collaborate across companies to develop new solutions. The analytical power of scorecard methodologies, which assess performance against a range of metrics, is helping to allow goals, such as ESG, to be part of a balanced analysis. Board-level and C-level support for ESG are facilitating the necessary collaboration across traditional silos. Supply chain contracts are steadily more adaptive, flexible and nuanced, allowing broad change.

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A first approach is to use accepted standards from laws and standard-setting bodies. Accepted standards are more credible and thus more likely to be adopted "as is" instead of being negotiated. Conforming to accepted standards is less costly and complex for suppliers than working with diverging standards from various buyers. Certifications may be available from reliable third-party audit or certification firms, avoiding the need for each buyer to do its own audit.

Accepted standards can be implemented using long-established contracting concepts. Supply contracts have long included clauses requiring suppliers to comply with designated standards, train their people in line with those standards, obtain third-party certification of compliance, and allow audits by buyers. Anti-corruption compliance is an early example of success at that approach in the supply chain, and privacy compliance is a more recent example.

However, accepted standards only take a buyer so far. They often are framed at the enterprise level, not the specific supply chain for a specific buyer as performed by a specific supplier. That may not satisfy regulatory or company requirements for the buyer because those requirements generally apply to the buyer’s supply chain specifically, not merely to the companies in the buyer’s supply chain. Also, audits at the supplier enterprise level may be unreasonably costly or intrusive and, in any event, it may be unreasonable for a single buyer to ask a supplier to modify its entire enterprise for that buyer.

As a result, buyers may seek to include contract terms beyond those typical in a supply contract. Typically, the negotiable topics are product, price, delivery time and delivery location. The manner of production – how the supplier will deliver – is generally left to the supplier.

In collaborative contracting, the parties negotiate about far more topics. In those negotiations, buyers may make operational, technical and financial commitments beyond paying the agreed prices. For example, the buyer might agree to fund investment by the supplier in changing its manner of working and the ongoing costs, or to change its product requirements to reduce adverse ESG impact for the supplier.

Collaborative contracting often requires a substantial investment. Done right, it requires considerable time for the operational, technical, user, business and legal terms to be negotiated and agreed. There may be new, and more complex, terms on commitment, contribution, control and sharing of risks and rewards. In the context of ESG specifically, those obligations may be designed to allow the suppliers to profitably produce on a more sustainable basis. Also, it likely produces contracts that are inconsistent across suppliers, which may cause difficulties in integrating the resulting goods and services.

In managerial contracting, buyers manage supplier operations through contracts. Buyers obtain contractual commitments to compliance with detailed process requirements and use boots-on-the-ground inspections to ensure those commitments are satisfied. They control critical decisions, such as subcontracting work and sub-component sourcing. They use scorecards, incentives, meetings, reports and other managerial tools like those that they would have used if the buyer and the supplier were a single enterprise. This allows buyer to control, to some extent, the manner of production.

Managerial contracting was developed for quality assurance, particularly for goods where quality is difficult to measure at delivery and thus engineered into the product. For example, cooling a component slowly and evenly may allow it to last 10 instead of five years. So, the buyer focuses on cooling speed instead of waiting five years to see what breaks.

Home buying companies vs. traditional sales

Companies that buy houses for cash can save you a lot of time and help you avoid expenses like repair bills and closing costs, but the ease and convenience of selling your home to a business could cost you thousands of dollars.

If your priority is quick, predictable sale with minimal hassle, selling to a cash buyer might be the best solution — as long as you’re willing to leave as much as 30% of your home’s value on the table.

💸 Why real estate agents can help you sell for more

You’ll have to pay a real estate agent commission (typically 6% of the sale price), but you’ll likely still net more money in the end. An agent will determine a competitive listing price using local sales data, and market your home so that it appeals to buyers who don’t just want to fix and flip.

Agents also list houses on the Multiple Listing Service (a real estate database the only licensed realtors can add listings to), which encourages buyers to submit strong offers. After all, anyone can see your listing once it’s live, so if a buyer doesn’t make a high enough offer, they might miss out on the opportunity to own your home when someone else comes along.

Assuming a company that buys houses offers you 70% of fair market value and doesn’t charge any other fees, you’ll still walk away with way more money when you list with an agent. In the scenario below, the seller would net $66,500 more selling on the open market.

🌟 You don’t have to pay full price to work with a top agent!

If you want help from a professional but don’t want to pay full price, Clever can match you with a top local agent from a trusted brokerage like Keller Williams, RE/MAX, and more. You’ll only have to pay a listing fee of $3,000 (or 1% if your home sells for more than $350,000), plus buyer’s agent commission if your buyer has an agent. On the sale of a $350,000 home, that adds up to savings of $7,500!

Companies that buy houses for cash: Pros and cons

  • Submit information about your home. Most companies collect basic information about your home through an online form or over the phone. In some cases, you may receive an initial estimate of your cash offer within 24-48 hours.
  • Complete the inspection. A third-party inspector and/or local representative from the company will complete an onsite inspection. Your final offer will be adjusted to account for any necessary repairs.
  • Accept the final offer. If you decide to accept the company’s final offer, you’ll sign a purchase agreement and schedule closing.
  • Close on your schedule. Unlike an individual buyer, companies can move fast and offer more flexibility on timing. Instead of waiting for a bank to underwrite a mortgage, you may be able to close in as little as ten days.

Individual real estate investors or investor groups are always on the lookout for properties and often pay cash to speed up the transaction by avoiding the delays of traditional financing. These investors either “fix and flip” a house for resale, or turn it into a rental property.

Tips for vetting local real estate investors


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