When Southeast Asian countries purchase steel cabinets from China, cost control needs to be optimized from four dimensions: material and production costs, procurement strategies, supplier selection and management , and transportation and taxes. The following are specific strategies:
1. Material and Production Costs
- Select thickness according to the scenario: 0.6mm cold-rolled steel plate (0.7-0.8mm after spraying) is used in non-typhoon areas, and 0.8mm thickened steel plate is used in typhoon areas (such as the Philippines) to avoid excessive material use.
- Improved process efficiency : Electrostatic powder coating is used instead of traditional spray painting to reduce paint waste and VOC treatment costs.
2. Procurement Strategy
- Centralized purchasing: Consolidate multiple orders to obtain volume discounts , such as a 5-10% drop in the cost per cabinet as the volume increases.
- Long-term cooperation agreement: Establish a stable relationship with reliable suppliers to lock in the risk of steel price fluctuations (such as agreeing on a quarterly price adjustment mechanism)
- Flexible supply mode: spot + customization combination , regular models are shipped directly from overseas warehouses (saving 15-30 days of production cycle)
3. Supplier Selection and Management
- Multi-channel price comparison: Get quotes from multiple sources through multiple platforms
- Factory direct purchase: bypass the middleman and work directly with the manufacturer
- Supplier evaluation: comprehensive consideration of price, quality and delivery capability
Give priority to integrated suppliers: such as FNT (Luoyang Furniture Import & Export Trading Co., Ltd) , a factory with material, production, certification and logistics integration capabilities, with comprehensive costs 8-12% lower than traders.
4. Shipping and Taxes
- Optimized container loading : Use 40HQ high cabinets (volume 67m³), with a single cabinet loading capacity of up to 200-250 standard file cabinets, diluting unit logistics costs. Use LCL for bulk cargo . Consider purchasing steel cabinets with disassembled structures that can be assembled locally to reduce transportation costs.
- Port selection: Compare the total landed costs of different ports and ask suppliers to provide FOB quotations to facilitate comparison of different logistics solutions
- Packaging optimization: Use folded pearl cotton + moisture-proof film to reduce volume (save 10-15% space compared to traditional foam).
- Using free trade agreements to reduce tariffs : Under the China-ASEAN Free Trade Agreement (ACFTA), the tariff on steel cabinets is generally 0-5% (original rate 10-15%), and a Form E certificate of origin is required.
- Markets such as Indonesia and the Philippines give priority to cabinets containing more than 60% environmentally friendly materials , which is in line with local environmental protection subsidy policies.
- Regularly review the supply chain: evaluate changes in steel prices, shipping rates, and tariff policies every quarter, and dynamically adjust procurement strategies.
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