You work as the procurement manager at a contracting and service provider company in the field of ventilation in Canada. You have found a supplier in India that sells refrigerant gasses like R134A, Compressors, and isolation tubes, and you need all these products. You are currently purchasing each of these products from an individual company in China and ship them to your warehouse in Montreal through Vancouver port. You import gasses and compressors in 20ft containers and the weight for each container is 19285 Kg. and 15500 Kg. relatively. The isolation tubes are shipped in 40ft. HC containers and the weight for each full container is about 7000 Kg. You import 200*20ft containers of gasses, 150*40ft containers of Isolation tubes, and 100*20ft containers of compressors. The freight from Shanghai port to Montreal through Vancouver is as follow:

20ft container: CAD 5500/ 40ft container: CAD 6500

The freight from Mumbai India to Montreal port is equal to:

20ft container: CAD 3000/ 40ft container: CAD 4000

The Indian company FOB prices are three percent (3%) less than the Chinese companies' prices with the same technical specifications.

You are appointed to conduct a research about the effects of purchasing from the Indian supplier on your cost reduction. planning to have a series of online meetings with the Indian company managers to negotiate the contract for purchasing these products. Answer the following questions as a team:

1. How can purchasing from the Indian supplier help us reduce the landed costs? Explain your reasons in an organized paragraph.

2. By searching and applying your own knowledge, write a detailed directory of cost items which are paid for the product by the supplier and the buyer. (From A-Z/ Production, Selling, Logistics...)

3. Suggest ten (10) innovative solutions for reducing costs mentioned in question two. You can consider the Purchasing Price, Supplier Selection, Packaging, Transportation, Customs Clearance, and all steps of global purchasing.

Based on the above information, provide a financial analysis about the possible cost reduction in annual transportation charges if we purchase from India?