Essay --

Currently in international market place and domestic market, there be two types of the purchasing methods purchaser uses. One method for the buying the products from the market is spot market buying and the second method of buying the products is with upcoming exact. The on the spot method is also called cash in market or physical market, where the products, currencies or commodities sold for cash and delivers the products immediately or in spite of appearance short period of time. For example, oil, grains, silver, beef, sugar, natural gas, milk, and gold are done through the spot market, where the prices are the set by open market and the transfer of cash and goods takes place immediately, and deliver as requested date in the future or within short period of time. The spot market is an instantaneous exchange for the current list or spot price for a particular commodity. With the integration of internet technology, the spot market has become even much efficient and useful espe cially in the energy industry. If energy companies have large surpluses of energy, the internet can give them a chance to find buyers in current need almost immediately. Though the spot market is good for company I need right now, its drawback is the fluctuating prices that can get chaos when calculating the logistics over the long term.There are several pros and cons of on spot buying, such as it conducts the market research and supplier recognition quickly in new market. Also, it provides easy access for lower value purchases. Moreover, it improves the sourcing productivity as well as alleviates the capacity issues that enhance the productivity of whole caboodle and category buyers. Also, it provides easy platform ability for market tests across geographiesThough apro... ...vent of the futures contract negotiated by Calpine, it did not fulfill the need for sodium hypochlorite, which implementing the spot market as a way to assure the efficiency of operations that would be the decision most logically made. If Calpines buyers or sellers know that they will be buying certain chemical in future, and selling certain number of products or energy, then they should consider taking a long term future contract for purchasing, and short tern future contract for selling the products which hedge its positions in market. So, operations ramp up, more energy needs to be supplied for the increased take up that was not accounted for in the purchase of the particular chemical Calpine ordered. Supply of the chemical dwindles and it up to the men and women at Calpine to search the spot market to find a company with a surplus looking to sell on the spot.