DEVELOPING

To be able to talk aboutt ransportation costs, you have to be updated throughout thecommercial

and international field.

Hence, the main thing that must be taken into account, is that our points of factories and
our wholesale storage, is as close as possible to our ports of embarkation or free trade zones.

With this, we can reduce freight costs and other expenses that can be general, by moving
our merchandise to the point of embarkation or dispatch for our final destination, the client.

The main points that must be taken into account for in our negotiations are the following:

From the location of our company to dispatch the product to the subcontracting of third parties
to produce, transport and deliver the final product to the satisfaction of the client,with
thespecifications and in the time that it requires, especially looking at beneficial cost andsaving of
investment to be able to obtain the qualification of a client that in turn helps us to openmore
market and to be able to expand to a future, which is one of our main objectives in the fieldof
international negotiations.

2. The use of technology with the innovation of a better product, using new packaging designs,to
reduce its volume and weight and to increase the desity of shipment.
Hence, many products are already dry, pulverized, dehydrated, in order to be vacuum packedand
in plastic packaging, where the weight is reduced, for which a high freight cost is paid, for which
already We see products that their packaging is more flexible and less heavy

The packing of the same has been able to demonstrate that nowadays reusable material is
beingused and materials such as wooden boxes, cardboard wrappers etc. are avoided. This also
helpsreduce transportation costs.

3- According to the principle of lean, are based on the delivery just in time, sent small, faster
andfrequently using a single fleet dedicated tothis type of transport, this is how the
currentcompetition between the transports, we can find a transport more cheap and with the
sameguarantees offered by others in the market

That is why within the supply chain is seen an impact on better transportation at lower prices
andthe shipment of larger loads increases the costs of shipments and inventories and the transit
timeis longer, for the transit inventory and security.

Finally, the financial impact is reduced in the cost of freight and thus more income is obtained
infavor and better control of inventories