july 2003 to september 2003 packaging : done in india packaging costs: very less (approx 40 cents...
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Packaging : Done in India
Packaging Costs : Very Less (approx 40 cents per package)
Packing Staff costs : 25$ / person / month
Stocking Costs: None
Mode of Service : EMS Speed post or Registered Airmail
Shipping Costs : EMS $12 / Reg. airmail $ 6-7
Shippers Charges : NONE (Done by ourselves)
Custom Clearance Costs : Very limited (approx $5 / package)
Total Costs : Very Limited
Delivery success rate : Terrible
Packaging : Done in USA.Packaging Costs : Increased to almost $1
per packagePacking Staff costs : Done my Myself.
(I don’t know how much I’m worth)
Stocking Costs: Not significant Mode of Service : Medicines were sent to
US in different small packets and then repackaged by me and sent by USPS with Delivery Confirmation.
Shipping Costs : USPS Priority Mail w/Delivery Confirmation = $4.30
Shippers Charges : NONE (Done by myself)Custom Clearance Costs : Increased (approx $15
per package)Total Costs : Increased mainly due
to paying to get it cleared from customs.
Delivery success rate : Improved but large orders (>100) were not possible to process.
Packaging : Done in INDIA.Packaging Costs : Around $1 per packagePacking Staff costs : Done in India. Cheap Labor
and Cheap Computer Staff.Stocking Costs: NoneMode of Service : Medicines were sent to US
pre-packaged, pre-labeled and were sent to customers by Airborne express.
Shipping Costs : Airborne Express Average Expenses = $6.50
Shippers Charges : NONE (Done by myself)Custom Clearance Costs : Same As Before
(approx $15 per package)Total Costs : Increased mainly due to
$2 increase for Airborne Express.
Delivery success rate: Drastically Improved but larger volumes were difficult to manage as sometimes newer orders got cleared from customs after older orders and thus some orders were almost delivered after a month.
This is when the following changes were applied
• Searched a different Shipper to ship products
(Earlier Leeroy Jones then David Armstrong).
• Started building stocks in USA in a secured place.
• Started packaging in USA itself
• Tie-up with UPS service for ground shipping
with Tracking & Delivery Confirmation
Packaging : Done in USA.
Packaging Costs : Around $2 per package
Packing Staff costs: Done in USA (Labor $8/hour,
Computer Staff $25/hour)
Stocking Costs: Exponentially increased due
to two factors. One, thousands of pills of different generics have to be bought in advance without knowing the actual consumption. Second they have to be kept in a safe secured place which is costing us more than $5000 per month.
Mode of Service : UPS Ground with tracking. USPS Priority for POBox/APO/FPO.
Shipping Costs : UPS Ground Average Expenses = $8.00
Shippers Charges: Given to David = $ 5.00Custom Clearance Costs: Increased as now price
was based on per 100 pill basisTotal Costs : Amplified with the whole lot
of overheads and costs.Delivery success rate: I think, we all happy
with this process.
•More different types of generics are being stocked and we now carry 30 different medicines as compared to 15 types in April.
•Stocks levels are being regularly monitored to assure that adequate quantity exists.
• A website is made where all of us can see the current stock position at any time.
•The orders can be uploaded in the website and the corresponding tracking file can be downloaded
Now the questions are:
1. Can we process more orders?
2. Can it be done with the same efficiency?
3. Are we doing only your orders?
4. How much bulk meds can be brought to US?
5. Till how long we can get this going?
6. What if anything bad happens?
7. What about split orders?
8. What about bulky medicines?