Forge & Flow KANEKO

Case Prompt

Our client is a Japan-based, material manufacturer called ‘Forge & Flow KANEKO’ specializing in a range of products for the structural steel industry. In recent months, our client has benefited from anti-dumping tariffs on imports of similar structural steel products. This has resulted in a demand surge for our client and other domestic competitors; however overall profitability is going down and customer complaints about order fulfilment are at an all-time high. As an integral part of your team, what do you think is going on here?

Additional info: (provide only if asked)

• The ultimate goals are to maximize overall profitability & order fulfilment % for key customers.
  • Key customers will be the ones contributing the most to profitability.
• The client sells products (specific product lines are irrelevant for this case) for the structural steel industry. It sells directly to customers & through distributors in Japan only.
• The client is one of the 3 largest domestic producers with almost 30% market share.
• The client defines:
  • Profitability over variable costs, that is, profitability = R – VC
  • Order fulfillment % is defined as: (% of tons delivered on time / total tons ordered)

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General response summary

Framework should capture:

• Financial aspects (revenues, variable costs) to address profitability
• Operational issues (manufacturing issues, utilization, logistics, issues in downstream/upstream) to address customer complaint issues
• External factors (geography, competitors, macroeconomic factors)