Wired for Success: Copper Market Highlights the Importance of Supply Chain Responsiveness
by Sterling J. Scott, Marketing Communications Coordinator, MHI | @mhi_sterling
In every supply chain, it is important to know where materials’ origins and destinations – from where are they coming and to where are they going. This allows supply chain models to be proactive rather than reactive. The speed and duality of responsiveness to market conditions is critical in determining costs and maximizing profits.
Copper and Electronics Manufacturing
Most electronic products use components from China, many of them contain copper. Manufacturers of electronic devices should be aware of and able to react to changes in the market place.
Copper is an important global commodity and is used in wires and cables, electronic components, motors, and architecture.
Glencore Xstrata has a 50% market share of the global copper market. The multinational company headquartered in Switzerland just sold its copper mine in Peru to a Chinese consortium for $6 billion USD. The deal gives China greater control of the raw materials its industries need.
Peru is the world’s second largest copper producer. China is the world’s largest copper consumer.
The largest consumer electronics companies are from Japan and the United States. These companies should be aware of acquisitions of this nature and size and determine how it will affect their production and prices.
No matter the industry, firms need a real-time view of their supply chain in order to remain competitive in the global marketplace.
MHI connects leading companies in the global material handling, logistics and supply chain industry. MHI and its’ member companies facilitate research and further insight to foster the development of solutions that make supply chains work. MHI also highlights important supply chain issues and the importance of understanding your supply chain in the 2014 MHI Annual Industry Report which can be downloaded at www.mhi.org.
