X = certain company
1)X anticipated much larger production quantities. Run sizes are less than half of what we expected based on 2012 volume forecast, thus our production efficiencies were not achieved.
2) It is clear that this business will likely be sourced in Asia as soon as the opportunity presents itself as evidenced by the CC quote. As a short term supply arrangement it is important that X is profitable on future runs as we will not be able to recover costs over long term
3)Freight cost with the carrier arranged were triple what we anticipated and what we would typically incur for shipments to the port further impacting profitability
4) X has no ability to block capacity as such our lead-times are within 10-12 weeks from time of PO
5) LME and labor costs have an impact with regards to the container costs. They are effecting the pricing as we move into 2013.
6) The current proposal allows for X to properly service the opportunity in Qingdao for orders 500k and above.
Regards,
2) 3) 翻一下呗~~