Logistics/Supply Chain/Pricing


Mr. Bowers

I am starting a small production business. I use a tropical vegetables as raw materials. This raw material is imported by local importers and i buy from distributors. My monthly usage is
1 palet (60 boxes).
Main problem: I am located in Montreal (Canada, Quebec), they import from abroad and is paid in $US , this causes a lot of variation in the price of the raw material.
The only way for me to manage this variation ($CA 55 to $CA 72) was for me to cut as many middlemen as possible but i did not have any success yet.
I buy only one palet at a time (it is not a big bargain position). How can i manage this ? i need a better control on the price of my material?
How can i manage my supply chain with the just ONE palet(60 boxes)?

Thank you

Claude, it looks like the currency exchange is the source of the problem.
If I recall your raw material is sourced in South America?
Your product may be handled through too many currency conversions.
Is there any way to deal directly with the Source in the origin country?  You may pay more for shipping small quantities internationally but it might still be less total landed cost.
Just an idea.

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Jim Bowers


Expertise in Transportation Solution Development, Pricing issues, Bid process, Negotiations, Development of Costing and Pricing information systems.


30 Years in Transportation Industry. Major Multi-site shipper, Consultant, Major National LTL Carrier, Regional TL, 3PL, Dedicated Trucking

Council of Supply Chain Management Professionals, Roundtable Officer.

BA Marketing

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