One of the advantages of an economic slump, i.e., the great recession – as if all recessions weren’t great to the people affected, is that it gives businesses the opportunity to rethink what they are doing.
For the metals industry, this is been increasing the number of options given and taken by suppliers and consumers. I thought South32’s decision years ago to sell on a port basis instead of delivered was fantastic. The company is a manganese miner and producer. While it has good logistical skills, by selling on a port basis, it separates the material from the logistics. Buyers were too accustomed to a delivered price and this allowed them the option to consider all the other options. After all they also ship their finished products.
I also think that Gerdau’s supply chain financing system is intriguing.
Options are great and it spurs even more creativity.
I want a lot of options when i order by sundae.