The Strategy of Pro Power to Survive Fierce Competition
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“Always Get Ready for Future Challenges & Impose No Restrictions on Itself”
Since its establishment, the specialized supplier of a variety of standard fasteners, Pro Power Co., Ltd., which is also considered “the dark horse” in the industry, has continuously demonstrated its amazing growth potential and marvelous overseas sales increase to the industry. Compared to its competitors, Pro Power is always capable of manufacturing fasteners of the same specifications, with “ a more complete range of service, more efficient delivery, and more competitive prices.” Not only the quality of its products has left its Taiwanese competitors far behind, but also its prices can still compete with those of similarities manufactured in China or Vietnam, which recently has become the subject of a talk in Taiwan fastener industry.
“Making Every Effort to be Stronger Than Competitors” is the Only Way for a Business to Survive
Lots of fastener companies only think of their way out when problems knock on doors, which is a definite no-no for Pro Power. “There are only two ways for a business to survive: one is to be stronger than your competitors, and the other is that your competitors are weaker than you. However, a business cannot win by good luck at all times, so Pro Power always gets itself well-prepared for any upcoming challenges in order to differentiate itself from competitors at crucial moments,” said General Manager Jaly Chen.” He added, “Take relocation of many small screws plants to other countries as example, in the early time small screw manufacturing was an industry with high profit margin and not too much competition. Nowadays, a swarm of competitors came into the industry, making the profit margin for each company not as high as usual and many companies shrink back. However, this is not a case for Pro Power at all, as before such a drastic change it has begun to introduce advanced equipment from abroad for mass production and fulfil cost management in order to gain small profit but rapid turnover, turning those issues which were challenges to others into its own opportunities.
Capacity, Equipment, and Technology are All in Place to Accept Customers’ Orders
Pro Power currently has two operations equipped with nearly a hundred sets of state-of-the-art fastener forming machines from Italy, Korea, and Taiwan, which can be used to manufacture fasteners for all applications (main specifications: sizes below 10mm and lengths below 150mm). Its monthly capacity can be up to 3,000 tons and is expected to increase to 4,500 tons when more new machines are installed by the year end of 2020. “With the technology and equipment we currently have, we can definitely produce any fasteners required by customers. We also have enough capacity that can be utilized to process more customers’ regular or urgent orders, helping them reduce their inventory cost. For a few urgent orders placed by our long-term customers, we can even promise them with the delivery within 1-2 weeks. In addition to keeping our stable and sustainable sales growth, we may also consider expanding our product portfolio to cover those required to be IATF16949 or AS9100 certified in the future,” said President Chris Chen. According to President Chen, Pro Power is going to finish the preceding procedures of its 3 new plants by the end of this year and is also expected to be put into operation and launch production in the very near future.
The Internationally Certified Plants to be Operating with SAP ERP
Pro Power has been not only certified to ISO 9001:2015 and CE (the requirement for entering the European market), but also has recently received the certification of ETA, which requires applicants to pass stringent auditing. Pro Power has also submitted its application for the ICC-ES certification, which is scheduled to go into the auditing step this year. It will not exclude the possibility of applying for the IATF16949, either. All of these fully demonstrate its quality requirement on every product detail while seeking mass production. Moreover, in order to offer better customer experience, it is also currently working on introducing the SAP ERP to streamline its order processing. “Although investing in this system can no doubt increase the workload for our team at the initial stage, it will definitely result in significant benefits to the company when it is officially online,” said President Chen.
Taking the Lead with Eco-friendly Plants
Different from conventional fastener threading plants, the plants of Pro Power do not get covered in soot. “We are very concerned about environmental protection as European or American companies are. When many of our Taiwanese counterparts are still using the low-cost and high soot-generating oil to manufacture screws, we have begun to use Italian synthetic threading oil, which effectively reduces soot generation by 50-60%. Meanwhile, we also hired the specialized soot-emission equipment supplier to design the soot-collecting device for our threading machines, which is not only for keeping good health of our employees, but also for being compliant with stricter EP regulations in the future,” said G.M. Jaly Chen. President Chen also noted, “We keep going toward the right direction and our team have been well-prepared right now to meet customers’ expectations.”