is direct trade really more profitable or more difficult? | Supply Chain & Export Forum | Clorofile
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is direct trade really more profitable or more difficult?

A
satu bulan yang lalu
it's been two years with the traditional exporter and the last year to try direct trade to some cooperative in Indonesia. Honestly, it's mixed up.

The price could have been lower because it cut a few intermediaries. The traditional chain can be 5-6 hands before it gets to roaster, farmers get $1.20 a pound but Zroaster pays $2.80.

But what's not told in all the articles about direct trade: documentation becomes its own responsibility, logistics becomes its own responsibility, quality consistency is also its own responsibility. If there's a problem in the Shipment, there's no intermediary to blame or ask for compensation.

For the longest time in direct trade, which part was the most difficult set up in the beginning?
8 Replies
H
satu bulan yang lalu
the export documentation is the one that takes the most time. if you don't have experience and a relationship with a straight forwarding well, one dropment could fail at many points. and if the survival of the customs is due to the documents, the cosmos can be much bigger than the cost savings.
T
satu bulan yang lalu
the key direct trade that works is having dedicated contact in cooperative or ill that can respond fast. not just about price but about real-time communication. if the operatives are hard to reach when the issue is.
U
satu bulan yang lalu
the traditional exporter wasn't always ugly. it's a good one that has direct connections to farmers and can enforce quality consistency. it's a problem. find the exporter who's genetically creative.
L
satu bulan yang lalu
deal. there's an exporter that basically became a religious aggregator and they have leverage to multiple operatives. from the side of the volume, they could give you an inaccessible consistency of a direct path to one small cooperative.
F
satu bulan yang lalu
the hybrid model makes sense: direct for some premium lot to sell with a strong, traditional original story for regular volume.
Z
satu bulan yang lalu
just started the direct trade exploration and the most dizziness was curency. Pay farmers in rupiah, invoice to buyer in USD, kurs are changing halfway. How are the mitigation?
G
satu bulan yang lalu
is the rate locked on the contract or the rate on payment day? if you want to mitigation, lock exchange rate on the contract. a lot of people wear spot rate on transfer day.
R
lima hari yang lalu
How low is it? Valid the data?

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