Monday, November 18, 2019

A Company Reporting on its Supply Chain Activities Essay

A Company Reporting on its Supply Chain Activities - Essay Example A Company Reporting on its Supply Chain Activities One of the companies exemplified in the report was Steel Dynamics where the current situation reported by Stundza (2010) was manifested as weak demand for products such as merchant bars, wire rod, light structural products, mini-mill made steel, special quality bar, structural steel and fabricated rebar, among others. The raw materials for these products are highly dependent on the availability and prices of scrap, briquettes, pellets, the types of steel to be produced, and operational factors. The end products are marketed to consumers of which the following were mentioned: automakers, automotive parts producers, residential and non-residential building construction, export markets and the nuclear industry. The crucial information that affects the supply chain are factors affecting supply and demand. As revealed, there is currently low demand or sluggish movement in both residential and non-residential building construction, and the prices of raw materials, particularly scrap. Further, export markets deem to be a lesser viable alternative to market their products due to end prices that would not be competitive in Europe and Asian nations because of including custom-duties, insurance fees, freight costs and availability of ships for export. Other relevant factors that affect pricing strategies for the products are the rising cost of scrap due to seasonality in supply and the strong demand for export markets.

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