undefined
Suppliers can't save on labor costs
2023-03
Suppliers cannot save on labor costs, so they can only focus on materials. However, the price of the main raw material nickel has doubled within a year, and the supplier has repeatedly requested price increases. There is also no potential for material utilization, as the supplier has already processed multiple parts together and the waste of leftover materials has been minimized. So, finding cheap materials became the only way for suppliers to survive.
The problem lies here. The nickel alloy originally used was produced in Germany, with a high price but good quality. Similar nickel alloys produced in France have low prices, but their technical performance is different from those produced in Germany. Suppliers purchase nickel alloys made in France to achieve a 15% price reduction target. When the parts are assembled onto the final product and shipped to the customer, the customer reports that the performance is not up to standard. This is a major issue that affects the customer's own production line and delays working hours. This huge loss, even selling this supplier, is not enough to compensate.
Related News
undefined
High-end intelligent pure lighting brand
Contact Us
86-760-22267918
Block C, No.6 East, Lianfeng Le Feng South Road, Xiaolan Town, Zhongshan City, Guangdong Province
Get deals and updates!
Follow us