Interview 5: Coil Center Business

Interview 5: Coil Center Business

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Comprehensive trading companies engaged in the work of value chain from upstream to downstream. And you will find it is out of the reach of many consumers when tracing back from downstream to upstream. "Does a comprehensive trading company also do this?" asked by people with great surprise. And it is a fact that this kind of work indeed exists. And among these work it is common to find much about business of "a large scale on a global scale". Although being away from consumers' attention, it is an indispensable part in people's daily life. And it has played a supportive role in China's market, which is the function of the comprehensive trading company. Metal Products Department No.2 of China Metal Products Business Unit in Sumitomo Corporation (Shanghai) Ltd.(hereafter referred to as Sumitomo Shanghai) is engaged in the coil center business. What is the specific content of the business? Let's have a look.

1.Reduce customer inventory and provide real-time delivery, which is the advantage of the center

Wang Xuming, once worked in Shanghai Summit
Wang Xuming, once worked in
Shanghai Summit

Wang Xuming with title of chief staff entered the Sumitomo Shanghai in 2005 and later was transferred to Shanghai Summit Metal Products Co., Ltd. (hereafter referred to as Summit), a coil center invested by Sumitomo Company (later referred to as SCC). He worked there for two years. Sumitomo Shanghai is a trade company which is mainly engaged in trade and business investment and puts emphasis on the flow of commerce, so there is less chance to contact with the entity of the goods. But taking the chance to work in Shanghai Summit, Wang Xuming is able to learn more other than trade business only.


Shanghai summit Metal Product Co., Ltd
Shanghai summit Metal Product Co., Ltd

It seems that processing industry (steel coil slitting and cutting board) in Shanghai Summit is rather far away from us. In fact, according to the introduction of Chief Staff Mr. Wang, these processed products are used in the daily necessities such as LCD TVs, microwave ovens, stereos and other home appliances and automatic parts. According to the customers' demand, Summit purchases master coil from steel manufacturers and does the inventory management. Then it will be processed according to the actual use of household appliances and automobile manufactures. With this working scheme, shanghai Summit is able to provide just-in-time service. There are five advantages to a coil center, namely, "timely providing materials for customers", "reducing the pressure of capital turnover", "reducing customer's inventory", "increasing the rate of qualified products" and "providing products with high quality". Besides Shanghai Summit , there are 11 SSCs in China with annual processing capacity of 1.2 million tons, which ranks one of the highest in this industry.


Shanghai summit Metal Product Co., Ltd
Shanghai summit Metal Product Co., Ltd

With China's rapid economic development in 1990s, a large number of Japanese companies rushed to set up household appliances and automotive production base in China. Compared to the import of finished products directly from overseas, processing the imported material in China will raise our competitiveness on cost. In response to this demand, Sumitomo fully take the advantage of its wide relationship with Japanese steel mill and its professional trade experience to create more potential business opportunities. In recent years, due to the diversification of customer needs and improved quality from local steel mills, SSC processes not only imported material from Japan but also the one from local mill to adapt to different request. In order to satisfy with the demand from Chinese market, Japanese mode of coil center Will continuously intensify its functions.

China Metal Products Business Unit Coil Center Business

Next Page >>
Interview 1: Wheat Flour Business
Interview 2: Fertilizer Business
Interview 3: Sulfuric Acid Business
Interview 4: Iron Ore Business
Interview 6: Cosmetics Business
Interview 7: Real Estate Development Business