Specialist Steel Alloy and Manufacturing Material Sourcing
For the last 20 years China has built the highest capacity steel and materials production infrastructure in world history. Chinese steel mills and material suppliers have provided the foundation that have enabled China to become the worlds shop-floor. In recent years China's capacity has been matched by a capability to produce material to world-class specifications.
CBN performs a unique function for our customers by working directly with mills and fabricators, bypassing brokers and agents. As with all of our managed supplier projects, our objective is to develop sustainable relationships that eliminate middle-man costs and provide on-site quality supervision.
CBN manages all aspects of production processes from accredited chemical composition testing, fabrication supervision and management, and pre-shipping inspections, through to logistics and international delivery. Our U.S. office will work directly with your purchasing departments to provide a "fully loaded" delivered price that can reduce overall material costs by a significant percentage.
The CBN material sourcing program helps to make U.S. manufacturing operations more competitive in both domestic and global markets,.
The Five Golden Rules of Steel Sourcing in China:
1. The mill will not come to you: The primary focus at most mills is large scale (meaning: huge) Chinese domestic projects and customers. The role of the Western purchaser in this discussion is not to become a major customer, but a highly-valued source of external revenue.
2. Know the mill. Contact with mill principals either directly or through trusted 3rd parties is essential for striking the right cost and quality sweet spot. You will need the mill to produce and monitor their production according to your requirements, so advance agreement of acceptable quality levels is essential and all part of the negotiation. As with any successful Western-Chinese venture, the goal should be towards a sustainable long-term business relationship.
3. Independent verification: Every aspect of physical quality and chemical composition will need to be verified independently from pre-shipping to final payment. Many world class test labs and resources exist in China to help accomplish this.
4. Economies of scale: To meet mill minimum order quantities (MOQ’s) and take full advantage of bulk pricing, Western buyers may need to purchase in larger quantities than normal. Purchasing bulk materials directly requires a different approach to inventory and production planning but if done correctly can help make the single largest quantifiable saving to a manufacturer’s actual production costs.
5. Boots-on-the ground: Negotiations should be handled by trusted and capable Chinese representatives. Unknown 3rd parties, shady middleman deals or “blind” orders are ill advised.