Canadian Steel Manufacturing Industry Overview
As the COVID-19 pandemic shows no signs of slowing down, companies in the Canadian steel manufacturing industry are facing operational and financial challenges. Also, travel restrictions, quarantines, and workforce shortages are increasing challenges for companies in the Canadian steel manufacturing industry to fulfil their contractual obligations to their existing customers. Besides, supply shortages, fulfillment delays, and increasing transportation costs are making it difficult for steel manufacturing companies to maintain profitability. As such, manufacturing firms will need to look beyond their own economic viability and plan for the post-COVID-19 era.
This success story provides comprehensive insights into how Infiniti’s custom market intelligence solution helped a Canadian steel manufacturing industry client to centralize cash management, reassess business plans, build a resilient supply chain, and prepare for the post-COVID-19 era.
How can companies in the Canadian steel industry prepare for the rebound and ensure business continuity? Our market intelligence solutions can help clients in the steel industry to understand the change in volumes and values post the COVID-19 crisis. Request a FREE proposal.
Our client, a Canadian steel manufacturing company, witnessed continued downward pressure on the product demand owing to the COVID-19 crisis. Also, the client faced cash-flow liquidity challenges and difficulties in managing debt obligations. Besides, the Canadian steel manufacturing industry client encountered continued weakening links in their supply chain as some of their vendors and suppliers faced operational challenges. Consequently, the client witnessed a decline in sales by 60% compared to previous months. This subsequently impacted the company’s profit margins. They wanted to revamp their traditional operating model, address technology gaps, and build business continuity strategies to succeed in the post-COVID-19 world. They chose to partner with Infiniti Research to leverage their expertise in offering market intelligence solutions.
Other key objectives of the Canadian steel manufacturing industry client were:
- Identify potential market risks and devise contingency plans in case of unexpected disruptions
- Reengineer their supply chain and build a resilient supply chain for the future
- Increase real-time visibility into every part of the supply chain
- Rebuild demand forecasting and capacity models for developing resiliency in the face of future demand shocks
For a detailed evaluation of the impact of the coronavirus outbreak on your business operations, contact us here.
Our Integrated Approach
In the initial phase, the experts at Infiniti Research worked closely with the Canadian steel manufacturing market client’s production, sales, and financial team to understand the extent of the impact caused by the rapidly spreading COVID-19 pandemic. Also, the experts reviewed the company’s capital and corporate cost budgets to identify marginal investments. After conducting a thorough analysis, the experts helped the client to devise strategies and plans to retain and deploy the workforce during the slowdown. In addition to this, the experts helped the client to evaluate automation solutions to reduce the number of workers on the factory floor.
In the next phase of the engagement, the experts identified potential weak lines in the supply chain, especially in regions already affected and likely to be impacted by the COVID-19. Also, the experts identified vendors and suppliers to help the client with their raw materials requirements. While selecting vendors, the experts assessed factors such as potential exit charges, permanent establishment status, and preservation of tax attributes on the movement of goods.
The final phase of the engagement involved experimenting with radical designs of supply chain models and building a resilient supply chain.
By leveraging Infiniti’s market intelligence solution, the client was able to identify divesting non-core and underperforming assets and identify new ways to reduce cash outflows. As recommended by the experts at Infiniti Research, the client outsourced some corporate functions and achieved a reduction in operating costs. Besides, the Canadian steel manufacturing industry client was able to devise risk mitigation programs for employees who worked on-site.
The experts also helped the client to identify potential weak lines in the supply chain and devise supply chain risk management strategies. Furthermore, by closely reviewing inventory position and assessing supply chain complexities, they were able to adjust inventory for the post-covid-19 period. In addition to this, the client was able to revamp their traditional operating model, centralize cash management, address technology gaps, and build business continuity strategies to succeed in the post-COVID-19 world.
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