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Case Study 1 - Plastic Bags Report

Request for Suppliers

Name: plastic bag
Purpose: shopping
Material: PP or PE
Requirements:
  • Sizes: A – 51 cm x 50.5 cm, B – 65 cm by 54 cm
  • Thickness: 0.0035 cm
  • Quantity: A 20' GP container load
Chinese market: There are many plastic bag factories in China and quality is good and the prices are fairly uniform. Below, are price, payment and delivery information summaries for three eastern Chinese manufacturers of plastic bags that we have investigated.

Table 1. Price information

Company Location Material Price (RMB)
Size A | Size B		 Packing Quantity Price conditions
1. Qingdao PP 0.33 0.44 A – 480,000
B – 350,000		 Qingdao delivery Tax-inclusive
2. Yiwu PE 0.33 0.43 A – 52,000
B – 37,000		 Yiwu delivery Tax-inclusive
3. Hangzhou PP 0.32 0.44 Not available FOB (Shanghai）

Table 2. Payment & delivery information

Company Location Manner of Payment Delivery Cycle Holiday Closure for Spring Festival
1. Qingdao Pay 50% of the full cost as the deposit Ship the goods 10 days after the deposit is received. February 4, 2008 to February 13, 2008
2. Yiwu Pay 40% of the full cost as the deposit Ship the goods within one month after receiving the order. January 27, 2008 to February 21, 2008
3. Hangzhou When full payment is received, they will ship the goods. Ship the goods within 25 days after receiving the order. February 6, 2008 to February 10, 2008

Notes:

  1. 20-foot Container Classification & Specifications
    • Ordinary container: Dimensions are 5.69 m x 2.13 m x 2.18 m, Gross Weight of goods is 17500 Kg.
    • Open top container: Dimensions are 5.89 m x 2.32 m x 2.31 m, Gross Weight of goods is 20000 Kg.
    • Flat-bottom container: Dimensions are 5.85 m x 2.23 m x 2.15 m, Gross Weight of goods is 23000 Kg.
  2. Packing quantity

Dragon Mountain Services and Fees

Dragon Mountain will provide the following services to your company: Suppliers credibility check (including business travel), communication costs (translation, telephone, fax, courier), contract negotiation, contract drafting, contract compliance (quality inspection), and export process supervision.

Our service fee is negotiated as a percentage of the total value of the contract, but is typically 10% for this type of product. Additional order costs will be for ground transportation, ocean container shipping, export taxes and insurance.