Should you swap commodities with your competitors?
July 6th, 2010 12:10 pm Category: Publications, by: Editor
“Swapping commodities with other manufacturers instead of shipping internationally can greatly reduce transportation costs and boost profits. Finding the right swap partner will help you avoid the risks that are inherent in these arrangements.”
“If you’re under a mandate to make substantial cuts in supply chain costs, you probably have already “picked the low-hanging fruit”—that is, you’ve made the obvious, easyto- achieve improvements. You probably have optimized delivery to your customers by routing orders through the most efficient network of warehouses. It’s likely that you also are sourcing from highly efficient manufacturing plants around the world. And perhaps you have partnered with ocean carriers and leveraged your shipping volumes to negotiate the best rates in the industry….”