The world is becoming smaller and profits and success is spelled not in terms of sales but in terms of efficiencies and economies of scale - lower your costs, don't increase your price is the rule of the day. I underlined this in a recent article voicing my opinion on this company's recently announced strategy to acquire small to medium size manufacturers to enhance efficiencies and support the development and international distribution of its product conceptions - spelled economies of scale.
A Falken affiliate, World Trading set up for the precise reason of centralized and grouped purchases and to expedite at lower cost raw material procurement, and Norex International (France) Inc entered into a Strategic Partnership Agreement for procurement. And, lo and behold, the completion of a first transaction in Bio Substrates - 30% right off the costs. A significance which goes well beyond the obvious. A 30% net saving at the raw material side is a 150% saving at the retailer's cash register for the consumer.
Falken , a rapidly growing company which I have been following since 1997 operates globally in two core business segments, chemical and wet wipes product conceptions. It is a glutton for various innovative high tech substrates which it incorporates for manufacture and distribution of its product conceptions. This goes far to explain why it is the regular recipient of industry awards, including the much coveted European Product Innovation Award.
Norex is engaged in in the manufacture, sale and distribution of chemicals and wet wipes. Norex supplies a large range of finished chemical and wet wipe products for FLKI product conceptions (and others) which rely on unique innovative and entirely eco-friendly materials. The alliance combines markets and customer bases to result in substantial economies of scale for manufacturers of FLKI conceptions, including its most well known in the Automobile After-Market, Clean Plus® brand conception.
Commenting on this agreement during a telephone interview, Manuel Garcia, Communication Officer for FLKI, stated, "We are excited to have forged this relationship and to begin sourcing through World Trading for Norex. We are very encouraged by the potential opportunities before us to source various innovative materials and substrates ensuring substantial savings in the cost of raw materials for all producers and consequently distributors of FLKI product conceptions."
Economies of scale, a famous term with little if any application at the level of small or medium size companies. There is safety in numbers and this perhaps explains the sudden interest in FLKI and its entrepreneurial hands off managerial position in respect to affiliates.
Commenting , Garcia added, " Sales of FLKI conceptions such as the Clean Plus® branded products have become a major export for many distributors with international sales growing at a compounded rate of 100% over the past few years. We believe the demand for FLKI product conceptions will continue to grow as customers attempt to increase the life of their capital investment – most notably in the Automobile After-Market where the Clean Plus® brand is a recognized global leader for car and vehicular care.
Innovating thoughts must be followed by aggressive and innovative plans. Those plans have to be carried out. I cover the Automobile After-Market, this kind of approach, will permit this company's products to hold the line on price - a seeming essential for survival in today's difficult economic climate - at least for most of us !
Author Resource:-
John David is one of the nation’s most respected expert analyst on the Automobile After-Market Industry. He holds appointments as a covering analyst with some of the world’s largest players. He also conducts a private practice as a consultant in capital raises, mergers and acquisitions for small to medium size manufacturers in the consumer, professional and industrial chemical, wipe, wet wipe and car and vehicular care industries.
Distributors interested in learning more about the Clean Plus® Product Group’s capabilities should visit www.cleanplus.com.
Concepts and Products adored by the citizens of Baytown, Texas
Falken Industries Ltd OTC : FLKI is a diversified industrial conglomerate that operates in Chemicals, Wet Wipe and Biodegradable Technology. Falken Industries Ltd is the concept behind more than 160 products distributed through a network of global platforms and the recipient of trade awards for innovations, biodegradability and environmental and health quality standards.
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