SAVING MONEY ON CABLE PURCHASING
During my 20 years in the global cable industry I have seen many changes. The demise of UK cable-manufacturing sector has seen many other overseas cable factories enter the UK and many export markets. This was met with an initial reluctance by many cable buyers to dismiss them, due to concerns about quality, which was a valid consideration. However, a lot of overseas cable factories have proven to be able to supply high-quality cables, with all relevant international accreditations particular the required industry.
For many years many purchasing executives accepted that they would have buy large MOQ’s (Minimum Manufacturing Quantities), which far exceeded their actual requirements, thereby adding an unwanted cost to cable purchases, especially for project procurement. This also resulted in having to accept extra cables that would never be used and ultimately ended up being scrapped or sold-off cheaply. Another major issue was the long manufacturing times, as long as 18-20 weeks for intricate and special manufacture cables. These particular issues have resulted in over-budgets and delays to completing important projects, especially shutdowns.
My company, Cable Industrial Ltd, a business consultancy / commercial agency, based in North-East England, but with a global network of agents and distributors has unearthed some terrific and previously un-heard of cable factories that have broken the mould in many ways! Due to seriously heavy investment in the latest, state-of-the-art cable-making machinery, international accreditation from the likes of BASEC. KEMA, DNV, NEK, UL and other certification and
Right: Craig Hatton (MIEx) is the Director of Cable Industrial Ltd and has over 20 years’ experience in over 60 international markets working in the cable industry.
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www.sosmagazine.biz | January 2016
also investment in highly qualified / experienced cable-engineers some these previously unknown factories are leading the way in the cable industry!
Some of these factories can produce MOQ’s as low as 300m, which is a huge cost-saving if the “accepted” MOQ was 1,000-2,000 metres. Delivery times of 3 to 4 weeks can be achieved due to efficient plant and a commercially astute and flexible management! Manufacturing efficiencies result in zero-scrappages, maximum running speeds and therefore extremely competitive prices! There is no way to make cables significantly cheaper than actual material costs. Any buyer should be wary of this as conductor materials, compounds and armouring metals all have to be procured through high-quality and equally accredited sub-suppliers. The only way to reduce cable-making costs is through efficiency, skilled staff and plant investment.
Many buyers in traditionally “conservative” industries such as the Offshore, Mining and Railway industries are starting to “think outside the box”, but it is a slow process with an understandable reluctance to take a risk on a new supplier. My partner-factories will always welcome any potential buyer and electrical engineer to carry out any factory visit / audit. Large international companies such as Exxon-Mobil, Flour and ABB have all been pleasantly surprised!
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