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Are you being hit by freight surcharges, pallet charges, or unusual fees when ordering raw materials/supplies for your distillery or brewery?

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We do pay pallet charges and occasionally a fuel surcharge.  The fuel charges has decreased now that fuel is cheap again.  

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I'm in the logistics and supply chain industry. I hope I can shed some light on this.

Fuel Surcharges: Vendors and last mile carriers are reluctant to drop this charge. A lot of them got burned in 2008 with the fuel spike and lost a number of customers when they tried to pay the fuel costs forward. They keep it in there for line item reasons. It's easier to dial up the $25 line item surcharge to $100 rather than to add one 

Pallet Surcharges: This is one you could easily negotiate out if you wanted to. Pallets are there to make transporting cargo more efficient. Pallets help your vendor's warehouse and last mile delivery teams operate at a profitable level. Easy on...easy off. If you purchase from a vendor often enough, you can get this charge removed (especially if the opportunity cost of switching vendors is low).

 

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