Margin optimization, more quality and control
We have been working for more than 10 years now with an impressive party from the Netherlands, which imports an average of 1000 tons of steel per year from Asia. Those are not bad numbers! We are therefore proud that together with this party we can achieve impressive results year after year. Some time ago we found out that this valuable partner purchased various small subjects and consumables externally from European agents until then. In itself a great option, but we saw opportunities to give their purchasing an interesting boost, both qualitatively and financially…
We are talking about topics and consumables such as fastening material, hinges, hinges and locks, screw material, locks, cable ducts, suspension systems and so on. They are all elements that the European agent often imports from Asia and this one is right. But of course we think it is a shame for our customers if they pay more margin than is necessary and, moreover, are less responsive than possible.
Same quality, lower price
This led to us having a meeting with our customer. Because from EWD-Compass we like to look at the various channels through which you can relatively easily purchase the same quality goods for a lower price. In this case, the smartest move turned out to be: do not import via the agent, but simply directly from the factory. In this way, our customer gained more control over the quality and origin of its product in one fell swoop. In addition, the difference in purchasing advantage turned out to be considerable.
"As our customer can use our help to import by himself, the margin of the intermediary disappears"
No more unnecessary margins
We are happy to commit ourselves to the quality we mentioned above. Being located in East Asia ourselves, we have the ability to continuously test and monitor. Moreover: because our customer now buys himself, the margin that the intermediate trader normally takes disappears and the purchase price drops considerably. Additional benefit? From now on, the customer can also become more active in matters such as branding or product optimisation.
That’s how we like to see it!
By staying focused on the possibilities, we have therefore been able to generate benefits for our customer in various ways. And that’s exactly what we like to do!