Bringing the UK metalworking sector together through supply chain collaboration

Organisations that collaborate effectively across the supply chain often see reduced costs, improvements in speed and service levels, and higher customer satisfaction. All of which could certainly benefit those in the metalworking sector.

As we advance our own collaborative initiatives to support our end-users and distributors, we wanted to understand the extent to which the metalworking sector is collaborating to source solutions throughout the supply chain. We surveyed metalworking decision makers in the UK, asking them a range of questions to understand their opinions on the current level of collaboration within the industry, how they feel supply chain collaboration benefits their business and their preferences when working with suppliers.

Current collaboration

Our research revealed that only a quarter (24%) of metalworkers say that there is enough supply chain collaboration in the industry. Whilst is seems that this sentiment is echoed throughout the sector, our research suggests that older metalworkers have a more positive opinion on current levels of collaboration. Half (50%) of metalworkers aged 55+ said there was enough collaboration within the industry, compared to only a tenth (11%) of those aged between 25 and 34.

Whilst the general opinion is that industry-wide collaboration is lacking, respondents were more positive about how their suppliers collaborate with them specifically. Just over half (51%) said that their suppliers collaborate with them to provide tailored solutions. This, however, still leaves almost half (49%) who are not receiving this level of service. Again, our research shows that this approach varies amongst the industry and may be dependent on the size of a business. Smaller businesses with turnovers of £100,000 -£999,999 are more likely to receive tailored solutions from their suppliers (83%) than businesses with turnovers of over £500 million (33%), which suggests that many suppliers are less able to offer bespoke services on such a large scale.

However, another potential factor that may be causing the decline in collaborative efforts is the rise of e-commerce. More than 2 in 5 respondents said that they usually buy directly from suppliers' websites and use technology rather than buy through people. This lack of face-to-face contact amongst the supply chain almost certainly will have had an impact on ability to create tailored solutions, particularly as site visits and seeing an end user’s application first-hand can help suppliers to develop a greater understanding of an end user’s needs.

Benefits of supply chain collaboration

Despite our research showing that metalworkers currently feel as though there is not enough collaboration amongst the supply chain, the industry does recognise how supply chain collaboration can benefit their businesses. Over half (51%) of those surveyed said that supply chain collaboration helps increase efficiencies in their business. Operations supervisors were most likely to feel as though collaboration made businesses more efficient (82%). This is positive as operations managers oversee operational activities at every level of an organisation, so are more likely to notice where efficiencies are being made.

On top of this, nearly half (47%) of respondents also recognised that collaboration amongst the supply chain helps their organisation to adapt to business needs. Understandably, organisations are able to be more agile if their suppliers are also able to work efficiently in partnership with them. It is likely that this has been on the rise in recent years, as it is particularly being noticed by those who have recently entered the industry. Three quarters of respondents who have served between one and three years feel this way, compared with only two fifths (40%) of those who have been in the industry for six to 10 years.

Innovation is a hot topic in the metalworking industry, and most other industries for that matter, so it’s positive that almost half of metalworkers agree that supply chain collaboration helps their organisation to innovate.

Supplier preferences

It is clear that the industry recognises that working collaboratively with suppliers has a wealth of benefits. However, to delve into the detail and find out what metalworkers value specifically when it comes to collaborating, we asked respondents what they look for from potential suppliers. Over half (53%) said that they value when a supplier can create a tailored solution to their business need. Welding supervisors and workshop supervisors particularly value this in a supplier, possibly as tailored solutions often make it easier for them to carry out their day-to-day activities in the workshop.

Our research also revealed that it is important to more than two-fifths (44%) of metalworking professionals that their suppliers are present in their buying journey. Again, suppliers being present throughout will allow them to gain a greater understanding of what it is the customer requires. Respondents from organisations with turnovers of £100,000 -£999,999 (66%) value present suppliers more than businesses with turnovers of over £500 million (33%). Understandably, as budgets for smaller organisations are usually tighter, they are more likely to rely on suppliers' recommendations to get the right solution in place the first time and minimise both costs and delays.

When it comes to choosing suppliers, whilst e-commerce is increasingly utilised, there are many in the industry who still prefer to speak to suppliers. In fact, almost a third (30%) said that they make their choice over which supplier to use quicker when can they speak to the potential supplier directly. So, it’s important that suppliers are personable and available for conversations with potential customers.

SAIT UK prides itself not only on being knowledgeable, but also approachable – providing tailored solutions based on your needs. If you’d like to know more about collaborating with us, get in touch today.