Appendix 1: Customer requirements survey
Aim: To investigate what Cargill’s customers experience as value added to the products and services they purchase from Cargill.
1. What is your impression of Cargill?
2. Which characteristics do you value most in Cargill’s products?
3. What characteristics do you value most in Cargill’s services?
4. Are there specific points of the products or services Cargill is offering that could be improved in your point of view?
5. Why do you order that specific quality of soybean meal?
6. Are you aware of all soybean meal qualities Cargill is offering?
7. Are you satisfied with the current qualities of the soybean meal or would a different specification, when available, suit you better?
8. Do you purchase more products of Cargill besides soybean meal? Which ones/
Why not?
9. Are there more products you need that Cargill offers, which you don’t currently purchase of Cargill? Why?
10. Do you order the soybean meal FOT/FOB or CIF and why?
11. Have you ever tried another kind of transportation? How did you experience this change?
12. How long upfront can you decide how many tons you need at what time on which day?
13. In what frequency do you change this planning?
14. What are possible reasons for you to change this planning?
15. Would it be interesting for you to collect the meal on a more structured basis?
16. What would make buying CIF more attractive for you?
17. Are you satisfied with the current service given by Cargill or would a different kind of service, when available, suit you better?
18. Are you satisfied with the current relationship with Cargill? Why (not)?
19. How can we improve or expedite our administrative activities?
20. Would you be interested in more integration within your relationship with Cargill? And in what area?
21. What is your opinion about Supply Chain Management within the compound feed industry?
22. What makes you decide to do business with Cargill?
23. How does Cargill perform compared to its competitors?
24. What do you expect of the cooperation with Cargill in the coming two years?
Thank you very much for your cooperation!
Appendix 2: Cost structure
Positive release: Positive release means a batch has been tested on salmonella and results are available before the batch it is loaded. This could save Cargill the costs of batches send back because salmonella has been detected afterwards. This bacterium is found on a more regular basis at this moment, which is not acceptable. Nowadays, when customers purchase meal and find salmonella later it costs U$ 10,000 per instance. Direct costs attached for Cargill because of salmonella are U$ 30,000 per year.
Demurrage: At this moment extra costs for paying waiting times, barges and demurrage are rising. Especially since ships are getting bigger and bigger. Demurrage costs about U$ 3,500- 4,000 a day, with an average of U$ 11,880 a month, making U$ 142,560 a year.
Loading 3500 ton ships: Smaller vessels (<1,500mt), that can be loaded without demurrage, are relatively costing U$ 2-2.50 more per ton soybean meal transported than larger vessels and are in short supply. Cargill estimates that they can get 75% of the supply chain costs reduction for loading larger coasters as additional margin in the books, which is U$ 506,250 per year. Meaning they make it more attractive for transporters to come to Cargill, who in turn lower the prices for their customers booking the
loading of more expensive SIP and 20 S products for lower prices because of limited storage (for further explanation, see paragraph 6.4).
This comes down to 1500 ton product at U$ 15 costs is U$ 270,000 per year.
Sunday labour costs: Additional Sunday costs in the form of labour comes down to U$ 45,000 per year. Employees need to be paid more on Sunday.
Sunday controlling costs: Customers and transporters do not have to agree with loading on Sunday. Control firms, hired by the customers, ask higher fees on Sunday. In order to get customers to load then despite of this Cargill pays the extra costs concerning the control. Canceling loading on Sunday can save about U$ 3,500 per month, U$ 42,000 per year.
Faster turnaround DDSG: Additional savings, not mentioned in the involved costs for Cargill before are savings made by a shortened turnaround with DDSG.
DDSG is a transporter company contracted by customers of Cargill from Eastern Europe to arrange transportation to and from the Amsterdam Cargill site. By providing a shorter turnaround an additional 10,000 tons could be shipped via DDSG, saving up to an additional U$ 11.88 per ton, counting up to U$ 118,800 per month. This is plausible for the months September to March. Presuming an average of U$ 5 per ton this would generate an additional saving of U$ 350,000 per year.
Appendix 3: Ground-plan of the soybean crush location
Appendix 5: Investments- Savings
Alternative 1 Alternative 2 Alternative 3 Alternative 4 Alternative 5
Tank € 291.750 € 379.000 € 440.950 € 440.950
Foundation € 65.000 € 85.000 € 125.000 € 125.000
Discharging € 305.000 € 305.000 € 305.000 € 305.000
Circulation € 152.000 € 152.000 € 152.000 € 152.000
Valve € 20.000 € 20.000 € 20.000 € 20.000
Retler € 110.000 € 110.000 € 110.000 € 110.000
Assembly retl. € 38.000 € 38.000 € 38.000 € 38.000
Remaining mat. Retl. € 5.000 € 5.000 € 5.000 € 5.000
Electronic connection € 90.000 € 90.000 € 90.000 € 90.000
Building permit € 10.000 € 10.000 € 10.000 € 10.000
Design costs € 5.000 € 5.000 € 5.000 € 5.000
Isolation € 20.000 € 20.000 € 30.000 € 30.000
Dust collector € 50.000 € 50.000 € 50.000 € 50.000
Grout
Weight scale € 50.000 € 50.000
Assembly W. € 50.000 € 50.000
Truck load-out upgrade € 1.000.000 € 1.000.000
Discharge ground € 5.000 € 5.000 € 5.000 € 5.000
Vence extension € 2.000 € 2.000 € 2.000 € 2.000
Discharge between 4 & 5 € 5.000 € 5.000 € 5.000 € 5.000
Pavement/sewerage € 7.000 € 7.000 € 7.000 € 7.000
Cleaning € 2.500 € 2.500 € 2.500 € 2.500
Reroute road € 50.000 € 50.000 € 50.000 € 50.000
Investment € 1.100.000 € 1.233.250 € 1.340.500 € 1.452.450 € 2.552.450
$1.452.000 $1.627.890 $1.769.460 $1.917.234 $3.369.234 10 % mis on investm. $145.200 $162.789 $176.946 $191.723 $336.923 10 % contingencies $145.200 $162.789 $176.946 $191.723 $336.923 Total investment $1.742.400 $1.953.468 $2.123.352 $2.300.681 $4.043.080
Savings Savings Savings Savings Savings
Positive Release $15.000 $30.000 $30.000
Demurrage $26.400 $66.000 $92.400 $142.560 $142.560
Loading 3500 T coasters $506.000 $506.000 $506.000 $506.000 Barges & Transhipment $50.000 $50.000 $70.000 $120.000 $120.000
SIP for NIP $50.000 $100.000 $150.000 $270.000 $270.000
Sunday labor costs $45.000 $45.000 $45.000
Sunday control costs $42.000 $42.000 $42.000
Faster turnaround DDSG $175.000 $350.000 $350.000
Total savings $126.400 $722.000 $1.095.400 $1.505.560 $1.505.560
Investment - savings $1.616.000 $1.231.468 $1.027.952 $795.121 $2.537.520
