A “direct delivery” (also known as a container shipment) is when a truckload of olive oil is delivered to you direct from the manufacturing site in the Mediterranean. The cost of delivery is included, and the oil is often cheaper because you receive volume discounts. Packaging is in flexitanks, drums or totes, and delivers in 20+ pallet containers. The shipping timeline takes about 6-7 weeks.
Direct deliveries make sense for many companies, even those using surprisingly low volumes. If you can use 20 pallets within 8-9 months and you have the room to store them, this program will be worthwhile. This means that you must be using at least 8 drums or 2 totes per month.
A “direct delivery program” is when regular direct deliveries are pre-planned with your supplier. With this system, you give your supplier an average timeline that your shipments will need to deliver. Your supplier schedules your orders, makes sure that inventory is planned/available and coordinates all of the shipping details. This system often allows you to lock in the price of the oil at the time that you contract. For example, a direct delivery program could entail receiving one truckload of olive oil every other week, direct from the Mediterranean. This program still has a setup time of 6-7 weeks, and generally requires a supply contract lasting 3, 6 or 12 months.
This “direct delivery program” saves a lot more money than having a truckload deliver from the supplier’s U.S. facility in the same frequency. Of course, back-up inventory would need to be available domestically for emergency shipments. This system is recommended for companies that have regular, steady usage.
Curious to see some real numbers? Click here to compare the pricing of each of these delivery systems.
Also, see Bulk Olive Oil Direct Delivery Programs for more information.