Task:
To find a stretch film producer capable of producing 3*40HQ containers per day.
To select Top-3 proposals, to make an analysis of the producer’ market, the producer must operate on European machines and be able to adjust the roll width on a waste-free basis. Sleeve diameter is not standard.
The producer must be able to export products within short timeframes and conclude a contract according to the exchange price.
Solution:
Our company has selected 26 producers. Within a week, we requested product samples and made an initial market analysis. After that, we contacted the suppliers of the raw material base – LDPE film in order to calculate the margin component of the producer as closely as possible, and to be more competent in bargaining prices. The Chinese highly value trained partners, thanks to this factor we were able to squeeze out the “sweetest” price for the final product.
When making a decision to choose a potential partner, we relied on the following factors:
- Minimization of local logistics costs,
- Convenience of process control,
- Experience of foreign economic activity of the plant, and the competency of employees,
- Reaction to changes in contract, product parameters, and payment terms.
- Availability of own warehouse and shelf life of products.
- Terms of payment, including the ability to work under a letter of credit.
How much time did we spend solving the above steps? – In total, since the approval of the terms of reference with the client, until the production of the first/trial batch of goods – 12 days. We managed to meet the deadline with a margin, and built within a week a long-term relationships with the plant, which has been lasting for the third year.
