Process optimisation

Milk supply contracts

Watson Dairy Consulting offers a confidential contract negotiation service for your manufacturing milk supplies.

We can supply a Non Disclosure Agreement or we can work with yours. We can obtain draft supply contracts on your behalf and evaluate the options without disclosing your details enabling you to transparently evaluate your current suppliers position and to know your current negotiating strength.

Manufacturers milk supplies are critical not only to secure a supply but to ensure that the supply is of the right quality from a microbial and constituent basis whilst being free of contaminants.

The quality and cost of milk is critical to  a manufacturers profitablility as is having a flexibility in supply to allow the business to take in additional milk supplies or to cancel in emergencies and make allowances for bank holiday closures etc

The relatinship between the supplier and the manufacturer is critical.

A good quality suppy at a competitive price with reasonable supply conditions allows both parties to secure their business long term.

A small to medium sized manufacturer will require a milk supply of some 100,000 to 500,000 litres per day which equates to some 36m litres per annum to 182m litres / annum.

The milk cost of 182m litres based upon 25 ppl is some £43m

Every £0.01 at this volume is worth some £1.8m / annum

Every 0.1% of Total Solids is worth some £375,000 per annum

Are you sure that you have the best contract available?

Do you spend enough time investigating supply options?

Calculating profitability on milk powder production .
For more information or to discuss your requirements please contact us.