Aluminum producers are certainly having a hard time lately:
- First, there's the threat posed by overseas producers, ones who have an endless supply of cheap labor.
- Second, there's the constant threat of increasing freight costs. These costs not only impact incoming shipments of raw materials, but they also decrease gross profit by expanding the company's values to ship finished goods.
- Finally, the economy itself is a concern. Producers everywhere are dealing with a substantial decrease in consumer demand.
However, all of these issues are more easily dealt with when aluminum producers can turn to an online resource for help. A website that provides insight into best business practices is heaven-sent for today's manufacturers.
So what does it take to make a website that addresses a producer's most significant concerns?
More importantly, what subject matter should be included in a website tailor-made for producers, ones who must reduce costs immediately?
The following are 3 sales strategies for the aluminum producer company.
1. Reduce cycle times
Every aluminum producer knows that their ability to reduce costs is based on their ability to reduce cycle times. Today's producers need insight into how best to increase production throughput, and nothing does that as well as providing insight into strategies that help reduce cycle times.
If you're going to make a website to help producers, then focus on showing them how to reduce cycle times. Lower cycle times means the company increases its production rates. If you can provide insight into how to reduce cycle times, then your website will be viewed as a valued and trusted resource.
However, don't just tell companies how to reduce their cycle times. Instead, take it a step further and show them your calculations.
2. Reduce inventory costs
Like most business models, aluminum producers have an innate fear of inventory. Unfortunately, having too much stock increases the producer's financing costs, while having too little means they lose gross profit by missing out on sales. Therefore, make sure to focus some of your website's content around how producers can use their economies of scale to lower their raw material costs.
A producer's cost of inventory is made up of the damage to hold finished goods for long periods. The longer they stay it, the more expensive than stock becomes. Providing insight into reducing these costs and how to increase sales in an aluminum producing company will be a tremendous help to your website's visitors.
3. Bill of material outlines
Another essential subject matter for your aluminum producers' website should include discussing the proper bill of materials management.
A producer's bill of materials is a summary of all the raw materials, sub-components and spare parts that go into the production of a given product. Focusing on common sub-component parts helps producers reduce inventory skews, which in turn empowers them to reduce their inventory holding costs.
In fact, inventory skews help aluminum producers negotiate lower prices. This allows producers to amalgamate volumes across multiple product lines. That increased volume will enable them to reduce their overall purchasing costs, and it also helps them to reduce their incoming freight costs.
Today's producers need help. They need insight on how best to reduce costs, how best to manage inventory, and ultimately, how to increase sales in an aluminum producing company. You can become that all-important resource, that one reference point they turn to when they need guidance. Your website can provide aluminum producers with invaluable tips on how best to reduce costs, how to increase production throughput, and most importantly, how to surpass those overseas manufacturers.