Fabricated metal product manufacturing is a major global industry. The industry generates approximately $2 trillion in annual revenue and whether you’re a major consumer products manufacturer or a smaller regional player meeting niche demand, fabricated metal product manufacturing is an industry that depends on efficient operations to hit profitability targets. Global sourcing metals can offer significant benefits to manufacturers working to lower costs and raise profits in this highly competitive industry.
Reducing raw materials expenses: Companies producing products from metal materials operate in a highly competitive environment. An experienced sourcing partner, like Mawson Global, with relationships in China and other metals-producing countries can help you identify the best partners, negotiate hard for excellent prices and let your team focus on its core competencies.
Building strong sourcing partnerships on the ground: Doing business in China requires strong sourcing relationships on the ground. Trusted relationships, combined with a deep understanding of local business culture and traditions, makes it easier for a company to close important deals. An established sourcing partner with these relationships in place can effectively represent your company and save significant costs related to opening an office, making local hires, and paying for frequent executive travel to the region. Relationships also make it easier to resolve problems when they arise, trouble shoot disputes, and manage process improvements that can shorten customs delays and other logistical challenges.
Streamlining the value chain: Metals manufacturers rely on tight value chain management to keep production moving and costs down. Value chain management is a complex and expensive undertaking in its own right. By choosing an expert sourcing partner with strong knowledge of sourcing raw ore and established regional relationships, it’s possible to run a lean value chain management team. It also helps direct their focus to activities higher on the value chain that can further optimize a company’s profits. Streamlining the value chain is important for large companies with well-mapped processes, as well as smaller companies relying on simpler systems.
If you’re a metals manufacturer that’s ready to improve your sourcing operations in Asia, contact Mawson Global. Ourproven two-step process can identify ways to streamline your operations and improve your profitability.