Supplier and Product Development in the Casting Industry, Steve Jardine – Project Leader: National Foundry Technology Network (NFTN)

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The issue when dealing with buyers be they state or private buyers is, that they have access to global markets and this means that buyers are afforded the opportunity to consider alternate products based on price. Buyers are required to deliver the best value for money and this essentially means that they will demand not only a better price, but also a better product as well as improved delivery time. In most instances imported products cost less than the products manufactured locally.

The end result is that products are imported, even the foundries import, because in this mad equation one has to survive. The pressures forced upon the supply chain, from buyers in relation to cost, comes down the line from the consumer who is the ultimate buyer and all the intermediaries that sit in-between. The project houses, the assemblers, the manufacturers through to the foundries all have special wants and needs and seek responses to these pressures in the form of on-time delivery and excellent quality. Individual firms do not have the resources and time to think through and look for solutions that will sustain not just that particular business but the industry as a whole.

One cannot work the solution on just price reductions – it thins the margins and eventually kills business. We have to think long and hard about what it takes to be sustainable. Delivering improved products at competitive prices requires leadership and teamwork.  It takes working together in partnership with a common purpose, to achieve economies of scale, finding engineering solutions, and developing innovative processes.

We all want more from our business, and should focus on adding value to each process to ensure the value chain is performing at peak. To achieve a competitive local industry will take effort to develop the capacity, and a passion to win – together.