Scrap price forecasting by GAIN Algorithm
Anyone working in the industry must be familiar with the term supply chain. But to match our information, let’s review the scientific definition of the supply chain:
In business, supply chain is a system consisting of organizations, people, activities, information and resources involved in supplying a product or service to the consumer. Supply chain activities involve the transformation of natural resources, raw materials, and components into a final product that is delivered to the end customer.
In complex supply chain systems, used products may re-enter the supply chain at any point where the remaining amount can be recycled. Supply chains connect value chains.
In the field of supply chain circles, it should be said, while the value chain shows how value is created in companies, the supply chain includes factors outside the company, and includes all the activities needed to transform raw materials into goods or services and deliver It is made to a consumer or business customer; Therefore, supply chain management is the coordination of flows between companies in the supply chain in order to maximize total profitability.
In the process of total profitability, it is enough to mention this point that the more optimal the purchase price, the higher the total profitability.
But why we say supply of raw materials at optimal price and why we don’t say supply of raw materials only at low price has strong and reliable reasons:
It is not necessarily a good idea to buy raw materials at a low price. To put it very simply, you may reduce the quality of the final product by buying cheap raw materials for your factory, lower the cost of after-sales service, and ultimately cause a heavy damage to the overall profit.
Do not forget that the total profit is not only financial and currency logic. Rather, the damage caused by low-quality goods to the product’s brand and social image cannot be calculated and valued in any way.
So it can be concluded that what ties the supply chain to the value chain is the point of optimality in the supply or purchase of raw materials.
But is optimality in shopping limited only to the price and quality index? The answer must be firm: No.
The time factor in the supply of raw materials is known as a very important variable in the supply chain. Remember that the best price, even if the quality is secondary, is always intertwined with the time of purchase.
In simpler terms, you pay the price of each item at the time of purchase. Whether this price is low or high is a time-dependent variable.
Therefore, predicting the time to buy raw materials is very important.
Is the time of supply of raw materials effective in buying recycled raw materials?
This question must be answered positively. We live in a world where most of the products are made using recycled raw materials. Also, these recycled raw materials are an important part of the product cycle.
Therefore, raw materials, regardless of whether they are raw materials or recycled raw materials, will be subject to all the rules of the sustainable supply chain. It should also be noted that the principle of sustainability in the supply chain of recycled raw materials is always tied to the green supply chain.
So it can be said that we are facing many indicators, variables and factors in order to have a sustainable green supply chain. The important question that arises here is whether there is a solution to optimize the sum of these variables or not? To answer this question, follow the green startup solution.
Forecast of the price of recyclable raw materials by GAIN company
It can be said that Gain company is not just a trading company in the field of recycling. GAIN company was founded based on a creative idea.
The idea of software development for recycling market
Let’s explore together this idea, which was formed by the experts of GAIN company.
This startup examines all kinds of raw materials, raw or recycled, as an independent element.
In simpler words, Gain has complete information of the basic elements of recycled raw materials stored in its database. Global prices, transportation prices from origins to various destinations, insurance and Basel costs, etc. are available in a complete and updated form.
It has identified historical data, including price change charts and variables affecting the main indicators of price determination.
It applies the effect of the season on the price of raw materials as well as topics such as lean production as variables in its indicators.
The conditions of the buyer and the seller, including the number of purchases per year, the distance between the destination of the raw materials and the origin of its supply, as well as the supplier’s ability to supply, are taken into account.
Considers geopolitical restrictions for buyers and sellers.
It provides the parties with a detailed analysis of the fundamental conditions affecting the price.
And finally, it provides the most optimal conditions for buying and selling.
This is the most important mission of GAIN company in creating a safe network of buying and selling recycled raw materials.
Everything that Gain does as a green start-up will be done through the combination of business intelligence and artificial intelligence and with the supervision of experienced experts of this company in all parts of the world.
It should be noted that in order to create confidence for the buyer and seller of recycled raw materials, Gain company itself will be present as a third party in commercial contracts and until the moment of final approval of both sides of the transaction, in case of any problems, it will be the guarantor of losses and damages. It will be both sides.
You will experience secure transactions of supplying your recycled raw materials with GAIN company.
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