• Supply Chain Operator

    Xiamen C&D Inc. Stock code: 600153.SH

    Supply Chain Operator

    Stock code: 600153.SH

    Client: ALLIANCE STEEL
    Date: 2020-10-28 | Source:C&D
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    Alliance Steel Project is a benchmark for the cross-border capacity cooperation between China and Malaysia. As a Chinese-funded steel mill operating overseas, Alliance Steel enjoys a large volume of investment and efficient allocation of capacity.The project, after being put into operation, needs to achieve high sales targets rapidly. Behind the target of high sales is the pressure of reaching full production.
     
    However, due to the complex international trade process of iron and steel, and the rapidly-changing market, the process of dealing with traders and downstream small and medium-sized customers, Alliance Steel often generates risks related to price, exchange rates, and performance.
     
    As a strategic partner of Alliance Steel, CHEONGFULI analyze the supply and demand situation in the global market, formulate pricing and operation strategies and promote goods to countries and regions with greater demand. In analyzing the market, CHEONGFULI classify downstream customers according to the demand type so as to achieve maximum profit through differentiated pricing for Alliance Steel.
     
    Besides, CHEONGFULI leverage the cross-border logistics management capabilities, dynamically allocate inventory, and seek efficient transportation solutions to help Alliance Steel improve the delivery efficiency of global orders. 
     
    In response to the financial needs of an overseas business, CHEONGFULI integrates a variety of financial instruments to help Alliance Steel save nearly 50% of the cross-border financing costs, reduce the risks of foreign exchange collection and exchange rate, improve the efficiency of working capital use and create financial value-added in addition to the proceeds of commodity circulation.
     
    CHEONGFULI's services help us achieve rapid and stable destocking. The two sides work to sell more than 100,000 tons of goods every month, which are sold to Southeast Asian, African, and European countries. The capital recouped from inventory turnover totals 400 million yuan. Within one year after the project was put into operation, we have become the leading wire exporter in ASEAN markets.
     
    The cooperation between CHEONGFULI and Alliance Steel abandons the traditional competition concept of traders, and optimize and innovate in each link of the supply chain from a new perspective to create value-added.

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