Logistics/Supply Chain/Reducing the supply chain
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?
Claude, you are asking the right questions. If you can cut out a middleman the cost could go down, but you need to run the numbers. I don't see any problem with you contacting the wholesaler in Toronto: Arc en Ciel Produce Inc. through their website or by phone. They appear to be the direct importer from Costa Rica near the Toronto airport. Ask if they sell delivered to you or if you have to arrange and pay for freight. Add it all up and if you save enough you should go for it. On the other hand if your local supplier offers a good quality and competitive delivered cost their could be advantages to stay with him.
Best of luck either way.