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Steel Products Sourcing from China for Numerous Customers

 

Case A: International Special Steel & Hollow Bar Distributor

Objective

An international special steel and hollow bar distributor approached TBA in 2006 to seek assistance in sourcing steel from China.

Methodology

Because of the specifications required by the company and other commercial limitations such as target price, minimum order quantity and payment terms, TBA adopted a more practical approach and focused on contracting support and negotiation.

Outcome

TBA identified suitable suppliers able to manufacture the requested products and visited all of them (some with the client). After supplier identification, evaluation and selection, TBA assisted with the price and commercial terms negotiation, as well as transaction management and risk control. By working with TBA for over 3 years, the client has become the largest distributor in its home market.

Case B: Leading Russian Pipe Distributor

Objective

In mid-2008, the company was unable to reach agreement with their Chinese supplier due to a misunderstanding that occurred during negotiations. As the company had already signed a contract with the end-user, it requested assistance from TBA to deal with the situation.

Methodology

TBA was then requested to introduce alternative suppliers. Unfortunately, there was only one additional Chinese supplier able to meet their requirements. TBA facilitated the negotiations on product specifications, price, logistics and other commercial terms.

Outcome

The negotiations lasted 2 weeks and TBA's intervention contributed to the signing of a contract of around USD 20 million and the establishment of a solid relationship between the company and the Chinese supplier.