Managing the Complexities of Supply Chains into Niche Markets.

Managing the soft commodity supply chain can be a challenging job, with many moving parts and multiple opportunities for delays. Managing the supply chain while developing a new trade-flow adds an extra level of complexity and pressure. The time it takes to build the strategy, research the market, accumulate the produce, book and manage the logistics, iron out the processes, the list goes on.

In years past, trade flows throughout the world were relatively predictable, and if you look at the major commodities like wheat, the majority still are. Consumers in ‘this country’ purchase produce from ‘that country’. However, if we turn our attention to niche markets, like soybean meal for example, the supply chain shifts to more of a, company A buys from company B, C and D this year then possibly company E, F and G the next. And, with more players in the global supply chain occupying those niche markets, it’s hard to know the best way to manage that supply chain process from start to finish.

One of the recent projects for our General Manager of Basis Commodities Consulting DMCC in Dubai, Elias Azar has been to help one of our clients procure and execute soybean meal for monthly delivery by rail into Central Asia. The client asked for our assistance given our knowledge, experience and networks in the feed markets. We have helped to conduct a trial and are now assisting the client to:

With the project set up and well underway we are now working with the clients to make the supporting systems and processes sustainable to support a long-term and profitable trade flow into a niche market.

For more information on how Basis Commodities can assist your business to enter new supply chains, reach out to the team on the below details. And, if you’d like to receive regular market information from Basis Commodities, be sure to enter your details in the form below.

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