Boss insists cutting out middleman to save 15% through direct import, ended up paying double in fees and fines: ‘I let him handle the logistics of a 40-foot container’

• 
  via pixelshot

  ^{Image is representative only and does not depict the actual subjects of the story.}

• Advertisement

• My boss insisted we cut out the middleman to save 15%, so I let him handle the logistics of a 40-foot container

  Wedcultist

• I work as a purchasing manager for a mid-sized home goods retailer. We have used the same domestic importer for our seasonal decor for five years.

• They charge a markup, but they handle the customs, the quality checks, and the shipping. It is hassle-free.

• My new Director of Operations is convinced that he is a business genius. He called a meeting last month and lectured me about how we are hemorrhaging money by using a local distributor.

• He told me to cancel our contract for the holiday shipment and go direct to the source.

• I warned him. I told him that dealing with freight forwarders, tariffs, and port delays is a full-time job. He told me I was just being lazy. He actually said, “Just get me the contacts, I'll close the deal myself.”

• 
  via Truecreatives

  ^{Image is representative only and does not depict the actual subjects of the story.}

• So I did.

• I spent a few days on Alibaba compiling a list of legitimate Chinese manufacturing companies that produce glass ornaments. I handed him a spreadsheet with twenty factory contacts, their MOQ (Minimum Order Quantity) requirements, and the time zone differences.

• I sat back and watched the show.

• He realized that FOB Price does not include shipping to our warehouse.
  He wired money to a supplier but forgot to hire a customs broker, so the shipment got flagged by CBP.

• The container sat at the port for ten days because he didn't understand what an ISF filing was. The demurrage fees (fines for not moving the container) alone cost more than the 15% he was trying to save.

• He came to my desk yesterday, looking incredibly humbled, and asked if I still had the phone number for our old importer.

• TL;DR: Boss thought international trade was easy; I let him manage a direct import order and he ended up paying double in fines and fees.

• Now here's my take on this: 

  Cutting out the middleman sounds great in theory. It’s the kind of move that makes people nod in meetings and pat themselves on the back for being “disruptive.” But in reality, it’s like deciding to do your own plumbing because you watched a YouTube video. Sure, you might save a few bucks, but one wrong turn and you’re knee-deep in chaos, wondering why you thought this was a good idea.

• International trade is a minefield of details most people never think about until they’re standing in front of a customs form they don’t understand. There’s the FOB price, the ISF filing, the demurrage fees, and a whole world of paperwork that can turn a simple order into a financial disaster. Trying to save a few percent by going direct is like trying to save money on a flight by building your own plane. The cost of failure is usually much higher than the savings.

• The real lesson here isn’t about logistics or customs. It’s about knowing your limits. Sometimes, the middleman exists because the job is complicated, and sometimes, the best way to save money is to let the experts do their thing. Not every shortcut is worth the risk, and not every boss is a business genius. Sometimes, the smartest move is to let the experts do their job and avoid the chaos of reinventing the wheel.

Tags

Also From FAIL Blog

Entitled neighbor causes damage to resident's lawn and mailbox by constantly backing his car through their front lawn, leading to confrontation: ‘It became a muddied up mess’