Question: The frames sourced from China typically take 45 days to arrive at Fat-E from the date they place the order. One of the benefits of
The frames sourced from China typically take 45 days to arrive at Fat-E from the date they place the order. One of the benefits of the Chinese supplier is that Fat-E can order any number of frames at one time, but they do take a significant amount of time to arrive. This doesnt allow Fat-E to adjust their production if demand peaks and Fat-E has been looking for a new supplier that would reduce the in-transit time to arrive. Fat-E did locate a suitable alternative in Edmonton Alberta, but they will only sell to Fat-E in full truckload quantity which is about four times more than their typical volume when receiving frames from China. The supplier in China includes the cost of freight in their price to Fat-E whenever they order and makes all the arrangements to have the frames delivered directly to Fat-E in Kanata. The Edmonton supplier will not pay for or arrange any transportation. They do require the buyers carrier to make a pickup appointment between 7am and 3pm Monday to Friday for outbound loads. You have been asked to prepare a report for management that will detail the potential impacts of a change in frame suppliers from the current Chinese supplier to the new Edmonton supplier.
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