Online Manufacturer with broad manufacturing network keeps prices stable even during raw material crisis
Procurement sector struggles with large fluctuations in prices: FACTUREE maintains its offers valid for 14 days
Berlin, 25 April 2022 – Procurement experts are predicting the end of the era of low-priced raw materials and reliable price calculations. Many manufacturers have drastically reduced the validity of their offers – sometimes to 24 hours or less. FACTUREE (www.facturee.de/en), however, is retaining its offer validity of 14 days despite the current difficult procurement situation. Here, the company benefits from its extensive network of some 2,000 manufacturing partners that gives FACTUREE more room to maneuver, ensuring stability.
The Russia-Ukraine war and the coronavirus crisis put the international supply chains under further stress in an already difficult procurement situation. Many manufacturers of custom-made parts can no longer offer their customers stable prices for a longer period, giving rise to a significant increase in offers that are valid for less than 24 hours.
Benjamin Schwab, co-founder and CMO of FACTUREE, explains: “The current market situation in procurement is making conditions for industrial buyers extremely difficult. The ever-shorter validity of offers that we are increasingly seeing with conventional contract manufacturers and material dealers makes planning nearly impossible for buyers. What was valid yesterday may be obsolete today. However, we do not pass price increases on to our customers and continue to maintain our usual offer validity of 14 days.”
FACTUREE is able to ensure this stability because the company has access to a manufacturing network of some 2,000 partners – mainly from the areas of CNC machining, sheet metal processing, 3D printing and surface technology. As a result, FACTUREE is in a better position to compensate the impacts of market developments through the careful selection of manufacturers. “We are also in a good position to negotiate with partners because as a platform, we bundle customer inquiries, thus achieving a greater order volume than an individual customer, resulting in a positive effect on offer prices. Furthermore, we frequently absorb price increases ourselves at the cost of our margin in order to give our customers more planning stability,” states Benjamin Schwab.
The future of procurement is in platforms
For every project, FACTUREE uses AI to select the most suitable manufacturer in terms of quality, price and delivery times. All manufacturing partners are subject to a continuous data-driven, ISO 9001 certified quality management system. The request process is semi-automatic, thus ensuring faster offers. The logistics partners are also checked for reliability before being selected. Prototyping projects can be implemented as well as small and large series production, which is continuing to grow.
Benjamin Schwab says, “Many industrial buyers are currently turning to alternative procurement methods and sales markets. As we see it, models based on dependence on one provider have become obsolete. Networking is taking hold in the industry, not only in the technical sense, but also with respect to cooperation among different stakeholders. The future belongs to platforms and ecosystems.”
Profile of FACTUREE – The Online Manufacturer:
cwmk GmbH, based in Berlin, operates under the brand name FACTUREE as the first Online Manufacturer. The company pursues the goal of enabling its customers to procure modern production parts through digitization, automation and networking. FACTUREE has an extensive production network of over 1000 manufacturing partners from the fields of CNC machining, sheet metal production, 3D printing and surface technology. More than 15000 machines are constantly available for projects. All partners are subject to a continuous data-driven quality management system certified according to ISO 9001. FACTUREE can realize prototyping projects as well as small and large series production. The customer base is located in the most diverse fields such as mechanical engineering, medical technology, model making, robotics, automotive as well as aerospace. Leading industrial companies like Siemens and Parker Hannifin, SMEs, research institutes and universities are among the customers. FACTUREE is active throughout Europe and has a continuously growing number of customers in other European countries.
Further information: www.facturee.de/en