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Note: We do not disclose the names of clients. Trust is the
building block of all our relationships. Our goal for this
section is to provide you with a basic idea of how we work. If you
have any questions, please do not hesitate to contact us to find
out more on how we can best tailor a solution to fit your needs.
Hedging against
Currency Fluctuations for Canadian Exporters
Challenge:
The US Dollar has risen over 15% relative to the Canadian
dollar since the beginning of 2003. This has quickly reduced the
competitiveness of many Canadian producers who manufacture in Canada
and sell much of their product in the US.
Solution:
Riverstone is working with several manufacturers under
cost pressure. Because many of our contracts are denoted in US Dollars,
sourcing in China results in a natural hedge protecting against
lower revenues for Canadian manufacturers while sometimes substantially
reducing costs of production.
Controlling Quality
Challenge: One of
our clients was sourcing large aluminum castings from China with
the intention of doing finishing in the US because of tight turnaround
requirements that required limited custom work. After finishing
the items in the US, the client was finding problems in the material
quality making it difficult for paint to adhere to the aluminum
and with anodizing resulting in splotching.
Solution:
Riverstone diagnosed the problem as being that the Chinese
vendor was using a high percentage of recycled materials with impurities
causing problems in finishing. Riverstone oversees
each stage of the production including western trained engineers
who understand North American specifications. Riverstone assisted
our client to re-source their production at a lower cost while eliminating
the material quality issue.
Reducing
Shipping Costs
Challenge:
Client currently sources in China from various vendors.
Client has been only shipping partial container loads resulting
in delays following additional security requirements entering the
US and generally higher shipping costs.
Solution:
Riverstone now works with client to consolidate and ship
whole container loads while allowing the client to maintain and
even improve its existing vendor relationships.
Developing
Private Label Lines
Challenge: Distributors
and wholesalers are interested in starting a value or low cost brand
to complement their premium offerings but are not interested in
investing in or managing manufacturing operations.
Solution: We are
currently working with a few clients who are interested producing
their own private label lines. Because of the existing distribution
base, Riverstone offers the ideal solution because of rapid scalability
of production including the capacity to produce lower initial production
runs.
Reducing
Cost of Short Runs
Challenge: One of
our clients is a medium sized company using limited numbers of large
custom precision castings with tight turnaround requirements. Domestic
alternatives have been found to be costly.
Solution: Riverstone
is working with this client to coordinate the receipt of drawings
in Solidworks and AutoCAD resulting in more rapid turnaround times
with savings of sourcing in China sufficiently high to justify shipping
the castings by air (2-3 day delivery time).
Building
in Product Complexity
Challenge:
Our client is a premium manufacturer of trend sensitive
goods (comprised of castings) in an industry where lower cost copies
come quickly to market. This client has been exploring integrating
extrusions and castings to produce products that are both unique
and more difficult to copy.
Solution: Riverstone
is coordinating manufacture of extrusions and castings while providing
limited assembly work and ensuring that tolerance requirements are
met.Riverstone coordinates production with over 25 local producers
in China including its own fabrication, machining and assembly shops.
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