Logistics/Supply Chain/Cut price of raw materials
I am located in Montreal and i have a small business who makes just one product, the main raw material is a Malanga Lila.
Because it is a small business i do not buy big quantities (5 boxes of 40 pounds every week) , my main supplier is: Sami fruits
That wholesaler has a supplier in Toronto called : Arc en Ciel Produce Inc.
Sami fruits buys 2 or 3 palets (1 palet: 60 boxes of 40 pounds)on a regular basis
I am giving you these infos just to give you an idea of what i am talking about.
I would like to have a better control of my raw material and reduce considerably the price of the raw material. I am able to buy 1 palet ( 60 boxes of 40 pounds) on a much longer period than Sami fruits to reduce the price of acquisition .
Questions: How can i deal with arc-en-ciel produce to have a good price ? Will they sell to me even if they already have their distributors in Montreal who buy many different products while i only buy just 1 product on a longer period of time?
Or if you have a suggestion to reduce the price of my raw material?
I understand your objective is to reduce your Raw Material costs. Here are my answers to your questions
1. How can i deal with arc-en-ciel produce to have a good price ?
Answer : Its straight forward higher the number of boxes (Order Volume) you buy better will be the deal / price that you can negotiate with them.
2. Will they sell to me even if they already have their distributors in Montreal who buy many different products while i only buy just 1 product on a longer period of time?
Answer : Arc-en-ciel do supports Food Service Outlets like yours (correct if me if you are not a food service outlet) as they have mentioned about this in their website. So i don't see a reason that will not serve you, except that the Price they offer may not be the one that they offer to Sami.
3. if you have a suggestion to reduce the price of my raw material?
Answer : There are multiple approaches to reduce your raw material cost.
a) Co-Source - Check out in your area and talk to other Food Service Outlets and see if you can buy from Arc-en-ciel directly, so that you both can better price and better product availability. And reduce your logistics cost too.
b) Invest in Product Storage Facility so that you can Source a longer time thereby able to buy greater quantity, also reduce your logistics cost.
c) Check if "Consignment Inventory" is a possibility in your case. Let me know if you have any questions on this point.
I hope i have answered your query to your Satisfaction. Please rate me based on your experience.