Can Mongolian traders benefit from order consolidation with Chinese wholesalers? Case EU and Mongolia

Abstract

This thesis focuses on examining the practicality of order consolidation for Mongolian traders who import goods from Germany. The analysis explores various aspects such as transportation routes, costs, wholesale and retail prices, and the potential benefits and challenges associated with order consolidation. The literature review section investigates the current trade trends between the EU and Mongolia, including the main transportation routes. It also delves into the concept of order consolidation, discussing its advantages and challenges. The methodology and study area section outline the research design, data sources, and collection procedures. The analysis and findings section presents the collected data and analyzes trade volumes, selected EU export goods, time and cost considerations for different transportation routes, and wholesale and retail prices. The findings highlight that importing through China presents potential cost and time savings compared to other routes. Moreover, the analysis suggests that Mongolian traders can benefit from consolidating their orders with Chinese wholesalers, leading to reduced transportation costs and more favorable wholesale prices.