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What does SPA in international trade mean?

literally means sale and purchase agreement

SPA is the final result of important business and price negotiation in any transaction. Buyers and sellers will try their best to seek and obtain potential benefits through negotiation and implementation of SPA; Under the SPA mode, in order to speed up the response and minimize intermediate links, that is, shorten the length of the supply chain, enterprises are committed to breaking down barriers between enterprises and establishing strategic partnerships. Since the 1991s, the emergence of powerful SPA enterprises has made it the most powerful business model in the clothing field. That is, the expansion of production system, the development of retail network, the improvement of information and logistics system, and the control of channel and commodity planning.

SPA focuses on product planning (MD) and sales, and is especially suitable for the production of small batches and various kinds of popular clothes. SPA advocates fine-tuning MD mode every week. The first step of implementation is to shorten the supply cycle of products from order issuance to delivery, and establish a production system for additional orders to reduce inventory and losses. The second step is to collect the sales information of each point of sale every day, and realize the weekly product planning after analysis. Perfect information and logistics network is the key to support SPA system.

SPA mode is a sales form with integrated control from product planning, production to retail, which can effectively link customers with production. Its primary goal is to meet the needs of consumers, and it realizes rapid response to the market through innovative supply mode and supply chain integration and management. At the same time, SPA mode is actually an advanced supply chain management concept, and rapid response and accurate supply are the core of SPA mode.

the features of p>SPA are as follows:

directly obtaining consumer information; Simplify the supply chain and greatly reduce the logistics cost and time; Minimize the risk of demand forecasting and realize rapid response to supply; Unique and novel product planning; As a new business model, the difficulty of SPA is how to manage all aspects of the supply chain, reasonably control logistics, capital flow and information flow, and avoid blind expansion.