5 Important Decisions to Make Before Buying Bulk Olive Oil

Posted by Hannah Broaddus

Decisions to Make

Blog15-Green-Number-Five-aAs you’re starting the sourcing process for bulk olive oil, there are five primary decisions that you’ll have to make as you’re considering the product and the logistics.  Let’s review:

1. Grades

Choosing the right grade of olive oil will be the first step and may include your Product Development or R&D teams.  A big part of this step will be doing test production runs with oil samples to make your final decision.  If you’ve already selected a grade of olive oil, give yourself a pat on the back.  Keep an open mind when reviewing each of the options though-- you may find that you can choose a different grade that will reduce cost but still meet all of your quality and taste needs.

2. Packaging

You’ll need to decide what kind of bulk packaging will work best in your facility.  This decision is often overlooked, and can be one of the biggest money-saving pieces to the puzzle.  The general rule is, the less packaging involved, the cheaper your product will be.  Don’t forget to work with your Operations and Production teams to hear what will work best for them.

3. Delivery & Storage

Every facility is different.  You’ll need to decide how much space you’ll have to store your olive oil.  Sometimes you can save money by ordering 6-20 pallets at a time, getting price breaks on both the oil and the shipping.  Evaluating your storage space will help you determine if you can create a smarter ordering pattern.

4. Direct Delivery Programs

The cost of shipping is an important component as you’re determining a delivered price.  If you regularly go through 8+ drums (2+ totes) a month, you may qualify for a “direct delivery” program, where your oil is shipped by the truckload direct from the manufacturing location overseas to you.  Don’t have room?  Some programs utilize a local storage warehouse that you can pull inventory from.  These are custom programs, but are very easy and smart to set up.

5. Finding the Right Supplier

The perfect partnership is different for every business. Some prefer to work with a supplier who is custom and flexible to their needs; others need someone who can deliver locally, and others still prefer a supplier who can offer them all of their different ingredients.  Deciding what you really want from your supplier will help you to feel at ease when you find the right match.  Above all, it’s important to work with a partner who will be dependable, professional and helpful.

Topics: Food Manufacturing, Small Businesses Advice

 

 

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