Optimize supply chain management

• Establish long-term cooperative relationships: FOSHAN TOPGRILL OUTDOOR PRODUCT CO., LTD. has established long-term and stable cooperative relationships with many raw material suppliers. This not only ensures a stable supply of raw materials, but also when raw material prices rise, suppliers are more willing to give certain discounts or subsidies to help the company reduce costs. For example, a long-term contract is signed with a steel supplier, agreeing to provide certain price protection clauses when prices fluctuate.

• Diversified procurement channels: The company avoids over-reliance on a single supplier and establishes diversified procurement channels. By cooperating with multiple suppliers, when the price of a certain supplier rises, the company can quickly switch to other suppliers to reduce procurement costs. For example, multiple steel and stainless steel suppliers are sought worldwide to ensure the stability of supply and the competitiveness of prices.

Cost control and efficiency improvement

• Strengthen internal cost management: FOSHAN TOPGRILL OUTDOOR PRODUCT CO., LTD. effectively controls the consumption of raw materials by improving the efficiency of each production link, optimizing the process flow, and reducing production losses. For example, by improving the production process, reducing the generation of waste in production, and improving the utilization rate of raw materials.

• Improve production efficiency: The company continues to invest in research and development, optimize the production process, and improve production efficiency. The use of advanced production equipment and automated production lines not only improves product quality, but also reduces unit production costs. For example, the use of advanced welding technology and equipment improves production efficiency while reducing labor costs.

Product design and alternative materials

• Development of alternative materials: The company increases its investment in research and development to find alternative materials with similar performance but more stable prices. For example, the use of aluminum alloy instead of stainless steel in some products not only reduces costs but also maintains product quality.

• Optimize product design: FOSHAN TOPGRILL OUTDOOR PRODUCT CO., LTD. reduces its dependence on expensive or scarce raw materials by optimizing product design. For example, design a more reasonable structure to reduce the use of raw materials while improving product performance and service life.

Market and sales strategy

• Reasonable pricing mechanism: The company adopts a flexible pricing strategy to adjust product prices in a timely manner according to raw material price fluctuations and market supply and demand. For example, when raw material prices rise, product prices are appropriately increased to maintain stable profits.

• Product portfolio strategy: FOSHAN TOPGRILL OUTDOOR PRODUCT CO., LTD. adjusts product structure and launches products of different grades and functions to meet the needs of different customers. For example, when raw material prices rise, increase the sales proportion of high value-added products to improve the overall profit margin.

Market monitoring and forecasting

• Establish a market monitoring mechanism: The company uses market research and data analysis tools to closely monitor the dynamics of the raw material market, including price trends, supply and demand, and policy changes. For example, predict the price trend of raw materials through big data analysis, and adjust procurement plans and inventory strategies in advance.

• Use forecasting models: Combine historical data and market trends, use forecasting models to forecast raw material prices, and provide a basis for procurement and production decisions. For example, use time series analysis and regression analysis and other methods to predict raw material price fluctuations in the future and prepare for response in advance.

Inventory management strategy

• Reasonable inventory level: FOSHAN TOPGRILL OUTDOOR PRODUCT CO., LTD. determines the optimal raw material inventory level, which can not only avoid capital occupation caused by inventory backlog, but also cope with the risks of price fluctuations and supply interruptions. For example, based on historical sales data and market forecasts, a scientific inventory management strategy is formulated to ensure the continuity of raw material supply.

• Safety stock setting: According to the supply cycle and price fluctuation range of raw materials, safety stock is set to ensure the continuity of production. For example, for raw materials with large price fluctuations, safety stock is appropriately increased to avoid production stagnation due to supply shortages.

Financial instruments and risk management

• Use of futures contracts: The company regularly conducts futures hedging business for bulk materials to lock in the purchase cost of raw materials. For example, through the futures market, the price of steel in the future period is locked to effectively avoid the risk of large fluctuations in market prices.

• Risk management mechanism: FOSHAN TOPGRILL OUTDOOR PRODUCT CO., LTD. has established a complete risk management system, regularly evaluates the risks of raw material price fluctuations, and formulates corresponding response measures. For example, a dedicated risk management team is set up to monitor and analyze fluctuations in raw material prices in real time and adjust procurement and production plans in a timely manner.