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Regarding to "Self-pickup by customer" and "direct hauling by supplier", this is a very important topic especially for bulky FMCG
1. How to define the transportation cost in self-pickup?
From supplier plant to where? to customer office location? or to customer WH location? For a big dealer, there is more than one WH in different region.
2. How to define total CIF price? (EXW+Transportation+Promotion+others) or (EXW+Transportation), if it is sales who negotiate the CIF price with customer (normally, yes), there is the risk that Transportation part is far more than the market rate to as the support to Promotion part, because customer get the profit based on total price vs. cost, customer don't mind what its content are, but it is very different in the finance book of supplier.
3. Why do customer want to switch to direct hauling?
If you realize the disaster resulted from cross-boundary (窜货), and agree customer can't make money from favorable transportation subside rate, customer has to make the money through selling more product. it is recommend to adopt direct hauling.
From the point of 3, it is very clear that logistics can undertake some other important role besides consuming the money. |
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