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:

  • Receive and manage demand from consumers
  • Assist on sales contract negotiation, terms and specifications and refine quality requirements in response to feedback from the feed processors.
  • Manage execution of futures price fixing and logistics organisation including structuring a loading/shipment schedule with wagons booking for all destinations and the execution associated with this.

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.

“Basis Commodities has proven itself as a reliable agent and guide for us into a new field of Soybean Meal physical trading in Central Asian region. We are grateful to Basis Commodities Team for honest and professional work.” – Vitaly Iliashenko

The lesson?

When you’ve got a toothache, you go to a dentist. When you’ve broken a bone, you go to a doctor. Soft commodity supply chains are no different. If you’re entering a new market, particularly a niche market, and don’t possess the expertise, you outsource that function to the experts, those who know the market, have the knowledge, the contacts and importantly, the resources and time to do it well!

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.

Basis Commodities Consulting DMCC – Dubai
E. info@basiscommodities.com
Ph. +971 55 276 0090 (UAE)
Ph. +961 70 670 412 (Lebanon)

Basis Commodities Pty Ltd – Australia
E. info@basiscommodities.com
Ph. +61 (0)2 9958 8091