Benefits of partnering with TMC…

Competitive pricing

TMC is able to achieve very competitive pricing from global milk powder suppliers and manufacturers of fat-filled milk powder which enables us to sell product to the Customers and third parties at competitive prices. TMC purchases thousand of MT of milk powder per annum (full cream milk powder and fat filled milk powder) . TMC is one of the largest single purchaser of fat-filled milk powder in the world, which gives TMC buying power that few players in the market can match.

Sourcing and pricing

TMC also provides a regular market analysis of the dairy market to its customers (Customers), which includes a forecast of future price movements. In order to do this competently TMC has access to, and regularly reviews, dairy market information from a variety of sources e.g. news, dairy market publications, regular contact and discussions with other market players. Key information includes global political developments, the evaluation of price fluctuations and the current status of global demand and supply, including the stock positions of both suppliers and buyers.

Shipment

TMC agrees shipment dates and schedules and places purchase orders on the suppliers. Further to this, TMC also monitors shipments against the agreed schedules and follows up with suppliers when deliveries fall behind schedule.  TMC also negotiates better freight rates and freight times due to the improved pricing power.

Credit financing and stock insurance

TMC provides credit terms to Customers and also assists when Customers experience liquidity problems, or are not able to source USD to pay for goods.*
TMC also provides cost effective stock throughput insurance.

Quality risk

TMC bears all quality risk in relation to products sold to the Customers. In the event of a quality deficiency, TMC with support from the R&D team, will liaise with the suppliers to correct any quality deficiencies. The suppliers will then compensate TMC, who will then pass this on to its customers.” There has not been any instance where TMC was not compensated by the suppliers for a quality defect.

Product liability risk

TMC carries all the risk for products supplied by itself – i.e. TMC is responsible for ensuring the products it supplies meet all quality requirements. If the Customers put a TMC product into a formulation then that formulation becomes the risk of the Customer- i.e. it is the Customer’s responsibility to ensure that the specification meets the product requirements before they put it into a formulation.

Distribution and sales risk

TMC is responsible for sourcing the product and distributing it to the Customers. The risk of problems occurring in the distribution chain remains the risk of TMC.

Country risk

Many suppliers are not allowed to sell products on credit directly to certain African countries. These suppliers would prefer to deal with a company based in Europe or the US, which is audited by a European or US auditor. TMC is audited by EY.

Foreign exchange risk

Businesses generally experience foreign exchange risk where they receive payment in a currency (or currencies) that is different from the currency in which they incur expenses. Foreign exchange risks relates to the possibility that currency exchange rates will vary over time.

TMC invoices the Customers in USD but purchases some of its products in another currency, e.g. EUR. Therefore, TMC bears some of the foreign exchange risk.

 * Terms and Conditions apply, including approval by TMC’s Credit Committee.