Flint Dredgers Global Services has a very lean and simple operational structure  which we intend to grow in the near future as illustrated in the organisational chard ton page 4. The Company’s operational structure is to remove as many logistical and operational bottle necks as early in the supply chain process thereby ensuring a smooth transition of products and services from supplier to buyer.

Structures

The company structure is one that tries to emphasise a low cost base. As such there fixed costs for the business are kept quite low. Primarily in form of Storage and through put costs, staff and administrative costs, and banking related costs. Although it must be noted that these costs can also be viewed as variable costs in that they are payable on each trade transaction but can vary directly with the cost of cargoes.

The deal cycle for trades at Flint Dredgers is kept at a 2-4 weeks. This is the time it takes to source, procure and distribute products to our clients. This lead time can vary as a result of unreliable suppliers. Flint Dredgers is intending to make its supply chain more dependable through an injection of trade finance funding and capital investment in its own storage facility. This will ensure that the company can best secure products at the right time and price point to reduce market risk exposure and guarantee supplies.

At present supplies are hindered by logistics, freight, storage, throughput space, availability of vessels and financial restrictions. When combined these factors restrict the volume of products that the company can trade to about 10 million  litres per month. FDGS can easily double that amount of products traded if all factors are properly in place. Nevertheless, Through an investment initiative in a storage facility and obtaining a revolving credit line the company will be able to mitigate against some of the negative market conditions and trade products at its optimum level.