Currently in the international market and domestic market, there are two types of purchasing methods used by the buyer. One method to buy products from the market is “spot market buying” and the second method to buy products is with “future contract”. The on-site method is also called “cash market” or “physical market”, where products, currencies or commodities are sold for cash and deliver the products immediately or within a short period of time. For example, “oil, grains, silver, beef, sugar, natural gas, milk and gold are sold through the spot market, where prices are set by the open market and the transfer of money and goods occurs immediately,” and deliver as requested on the future date or within a short period of time. The spot market is an instantaneous exchange with the current list or spot price of a particular commodity. With the integration of Internet technology, the spot market has become even more efficient and useful especially in the energy sector. If energy companies have large surpluses of energy, the Internet can give them the ability to almost immediately find buyers who need it. While the spot market is good for the business I need “right now,” its downside is fluctuating prices that can cause chaos in calculating long-term logistics. There are several pros and cons of buying on site, such as; quickly conducts market research and supplier identification in the new market. Plus, it provides easy access for lower value purchases. Furthermore, it improves procurement productivity; as well as alleviating capacity issues that increase the productivity of plant and category buyers. Furthermore, it provides an easy platform capability for market testing in different geographic areas. Although I open... middle of paper... vent of the futures contract traded by Calpine, it did not satisfy the need for sodium hypochlorite, which by implementing the spot market as a way to ensure the efficiency of operations which would be the most logical decision to make. If Calpine buyers or sellers know that in the future they will purchase certain chemicals and sell a certain number of products or energy, then they should consider entering into a long-term future contract to purchase and a short-term future contract term for the sale of products that cover one's positions in the market. So, operations increase, more energy needs to be supplied for the increased demand which was not taken into consideration in purchasing the particular chemical ordered by Calpine. The supply of the chemical dwindles and it's up to the men and women of Calpine to search the spot market for a company with a surplus looking to sell "on the spot".”