Should You split the order ?

Why not ? if you can save USD100 !!

Imagine you have this enquiry to fix today, 200MT IFO and 100MT LSMGO ETA 7 days from now in port A. There are 2 suppliers and you are direct with both.

Supplier A  give you IFO- 200USD/MTD LSMGO-400USD/MTD,

Supplier B give you IFO-205USD/MTD, LSMGO- 391USD/MTD.

Base on some 6years old math,  B is cheaper but ……….wait , why don’t you fix the IFO with supplier A and LSMGO with supplier B ? then you could have the lowest from ALL.

As matter of fact, you could do that in some port but most likely you wont , the reason is

1. Not every vessel can take IFO and MGO at the same time, normally LSMGO will be supplied first and then IFO , how long will the IFO barge willing to wait ?  They might do other job first and come back later

2. How about a dispute on the LSMGO parcel ?  IFO barge will definitely not wait 10hours until you guys reach an agreement. They will go supply other vessels first and come back in their earliest. So to save few hundred dollars at the end you might lose time that worth thousands

So what is a better pratice ?

I will suggest let the supplier know you have much lower and see if he can match.

Also get his consent if you want to split the order, so you can either

1, get a lower price if they want to compete

2. They know the operation arrangement in advance even there will be 2 suppliers.

 

Until next time

<This is a personal blog. Any views or opinions represented in this blog are personal and belong solely to the blog owner and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.

All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. >

 

What do think about this ?