Resident Buying Office - Definition & Meaning
What is Resident Buying Office?
A resident buying office is one that does the buying activities for many big producers and/or retailers in the same line of business. The buying office provides their clients with all the markets updates like prices, new products, new technologies etc. The buying office may also after approval from its clients may initiate the procurement process by placing the order and finally delivering the clients. The buying houses earn a commission from the clients.
The resident buying offices are used by many firms as they have resources that are better suited for making the purchase as they have long term relations with the sellers and can negotiate much more with them because they have several orders from several clients.
For Example: - Many fashion buying houses operate in India which serve big fashion brands about the new fashion trends in the market, they also find the fabrics for them and also do the final procurement process and they earn a commission. The big brands get the ease by outsourcing their buying and gain from the expertise of the buffing office.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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