Question: C HEMTECH AND BKC LOGISTICS OPERATIONS Chemtech Ltd . , a leading manufacturer of industrial chemicals, operates its production facility on the outskirts of Ahmedabad,
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HEMTECH AND BKC LOGISTICS OPERATIONS
Chemtech Ltd a leading manufacturer of industrial chemicals, operates its production facility on the outskirts of Ahmedabad, in the Indian State of Gujarat. Specializing in a diverse range of chemical products, Chemtech serves a nationwide market through a network of strategically located distributors. These distributors play a pivotal role in ensuring the widespread availability of Chemtech's products, catering to the needs of industries nationwide.
In addition to its distribution network, Chemtech also engages in direct sales from its manufacturing facility. This direct sales channel allows customers to procure chemicals directly from the source, offering convenience and efficiency in the procurement process. By leveraging both distribution channelsthrough distributors and direct salesChemtech maximizes its market reach and ensures the accessibility of its products to a wide range of customers, from smallscale enterprises to large industrial operations.
CHEMTECH'S PROBLEMS WITH BKC
BKC Ltd based in Mumbai, in the neighbouring Indian State of Maharashtra, is a primary supplier of raw materials to Chemtech, facilitating the latter's production and manufacturing processes.
However, despite the significant partnership between the two companies, Chemtech has encountered three challenges with BKC Ltd adversely affecting their operational efficiency and business relationship. Firstly, Chemtech has experienced delays in deliveries from BKC Ltd disrupting its production schedules and causing inconvenience in meeting customer demands. These delays impact Chemtech's ability to promptly fulfil orders and lead to potential revenue losses and customer dissatisfaction. Secondly, Chemtech has encountered issues with damaged products received from BKC Ltd This poses significant concerns as damaged raw materials can compromise the quality and integrity of Chemtech's end products, potentially leading to financial losses and reputational damage.Question: what incoterms can be used below the firms and suggest the most suitable and justify.
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