As the global stainless steel forging market continues to grow, international competition is becoming increasingly fierce. In this competitive environment, developing effective supply chain strategies becomes the key to success for stainless steel forging enterprises. This article analyzes the international competitive strategy of the stainless steel forging industry under a single supply chain, and provides evidence-based information on relevant national policies.
I. Challenges of a Single Supply Chain
As highly customized processed products, the demand for stainless steel forgings is roughly equal to the purchasing volume, making supply chain system efficiency extremely important in this industry. As most suppliers are concentrated in China, a few major buyers have a huge impact on the supply chain. The Chinese government has recently implemented a supply chain contraction policy aimed at reducing its dependence on overseas markets, which will make supply chain decisions more complex. Therefore, stainless steel forging enterprises need to face these challenges under a single supply chain and take measures to cope with them.
II. International Competitive Strategy
- Establishing Efficient Supply Chain Management
Establishing efficient supply chain management is the foundation for stainless steel forging enterprises to develop a competitive strategy. Enterprises need to closely connect suppliers, logistics service providers, salespeople, and customers to provide high-quality, low-cost, and timely delivery services to customers. This means that enterprises must have a complete supplier management system that can quickly adapt to market changes and achieve supply chain flexibility. - Focusing on Research and Innovation
Scientific research and technological progress are important factors driving the advancement of the stainless steel forging industry. Due to the highly customized nature of stainless steel forgings, developing new products and services that meet customer requirements is the key to enterprise development. Therefore, under a single supply chain, enterprises need to strengthen their research and development capabilities, continuously innovate, and launch new products that meet customer demands. - Reducing Costs
Cost management is an important guarantee for achieving competitive advantages under a single supply chain. To reduce company costs, modern equipment and technology should be used, manufacturing processes should be optimized to improve efficiency and reduce waste. Enterprises should also tap the potential of resources, improve process performance, and reduce operating expenses. - Expanding Overseas Markets
With a series of supply chain contraction policies implemented by the Chinese government, uncertainties in the domestic market are increasing. Therefore, under a single supply chain, expanding overseas markets is the trend for enterprise’s long-term development. According to the “Made in China 2025” plan, the Chinese government plans to support enterprises’ overseas mergers and acquisitions, build investment cooperation platforms, and establish production bases abroad in the next five years. This will help Chinese enterprises expand their production capacities and enhance their competitiveness in the global market.
III. Case Study
Ansteel Group, a large steel company, is one of the leading enterprises in the domestic stainless steel forging industry. The enterprise has strong practical experience in establishing its own core supply chain. The company mainly adopts a “deep supply chain model, from purchasing raw materials from upstream steel mills to manufacturing finished products,” which can achieve cost savings and stabilize raw material procurement. At the same time, the enterprise also attaches great importance to product quality and innovative research and development, committed to providing stainless steel forgings that better meet market requirements to customers.
In conclusion, the stainless steel forging industry faces some challenges under a single supply chain, but also has great development potential. Enterprises need to develop a scientific and effective international competitive strategy, to realize strategic objectives through supply chain management, research and innovation, cost control, and overseas market expansion. Only in this way can enterprises obtain more opportunities in fierce market competition.
