MAK MONEY, DO BUSINESS.- Session 3. My own company.

Listen to Carla from the logistics department and his assistant, Elena, discussing about different organizational options

Carla: So Elena…as I see it… we have too main options; option number one: to send our pre-palleted merchandise in an intermodal multiple-use container and option number 2 to send the already mentioned merchandise in our own exclusive container.

Elena: Yes, that’s basically the decision we have to make. By the way, has the board finally validated the vacuum packaging process as the main packaging process for exports?

Carla: Yes, they have. It was a tough negotiation. Half the board was against vacuum packaging but I insisted on the fact that we must turn to new packaging methods.

Elena: And furthermore, that kind of packaging will reduce costs because no refrigerated container is needed.

Carla: Yes and that’s why I also think we should combine that kind of packaging with option number 2. It can be more expensive but we have full control over the product and I think it is worth the economic effort.

Ok, then… let’s move on to another topic. Have we already decided which incoterm we will be using?

Elena: Well initially we also had two options ‘again’ the FOB in which, as you know, as soon as the container is on board the merchandise is under our customer's responsibility, and the CIF . But we finally agreed to use the CIF one. That means we are responsible from the product until it hits Chinese soil. Thus, we get rid of customs problems and we assure that the product has the European quality standards.