Published On: January 19, 2024

The supply chain is the production and service process involving a network of resources, manufacturing, storage, and delivery to end-users. Disruption of just one part of the process can dramatically interrupt supply chain management.

In this blog, we will look at a recycled aluminum company facing a supply chain challenge. SCG International has provided complex end-to-end supply chain services for more than 40 years, assisting with solutions and turning challenges into business opportunities.

The Four Main Challenges of Global Supply Chain

Raw Material Shortage

Material shortages can occur for reasons such as climate change and epidemics. This results in an insufficient supply of raw materials due to the sole reliance on a single supplier. Insufficient raw materials can negatively impact your client’s trust and your revenue and obstruct other operational processes.

Complexities Working with International Markets

Each country has different rules and regulations, which can create complexities and obstacles to business growth if the company does not fully understand the situation or have up-to-date information.

Higher Costs

Costs may, at times, be outside of a business’s control, such as the costs of raw materials and transportation, which can increase yearly. Due to various factors, such as increased demand for raw materials exceeding supply, the burden of consistently rising costs can become uncontrollable and overwhelming. A company relying solely on a single supplier may be forced to accept higher costs, which can affect the bottom line.

Complex Processes

Supply chains have complex processes that require specific knowledge and abilities, including coordination between countries, transportation, and new raw material sourcing. Issues in any of these areas can hinder the supply chain. For example, the quality control process of sensitive and potentially contaminable products, such as chemical goods, must undergo thorough checks for the purity of chemical substances. Proper storage practices, including accurate labeling, are essential in these cases.

These issues can be resolved by collaborating with an end-to-end supply chain service provider like SCG International with experience and knowledge in supply chain management. Our full-service supply chain company provides businesses with a strong international network and end-to-end supply chain services.

Real Case: Business Examples of
SCG International’s End-to-End Supply Chain Services

A leading recyclable aluminum company specializing in recycling aluminum scrap to manufacture beverage cans and packaging faced a supply chain challenge. Read on to discover how SCG International, as a fully integrated supply chain service company, handled the situation:


Collecting aluminum scrap is a complex task involving gathering scraps from various sub-sources or different countries, along with the inspection process, inventory management, and financial management. It also concerns challenges in transportation, varying regulations in different countries, and ensuring suitable packaging for international transportation. Legal and quality considerations in each source country must be followed when collecting materials. A QC team is also necessary to inspect and prevent contamination, which comes with high management costs.

5 Service Solutions from SCG International

1. Demand Sensing & Consolidation

We assist in gathering the required raw materials at suitable prices and quality, so our customers need not worry that small purchase quantities will result in excessively high prices. Thanks to our solid number of customers, we can increase our purchasing volume, while our robust network of suppliers ensures we are sourcing quality raw materials. Moreover, we can accurately forecast demand, even in volatile situations, allowing for efficient stock management, manufacturing, and distribution.

2. Sourcing Validation & Inspection

Our inspection team gathers, stores, and transports the aluminum scrap to prevent contamination. This service involves selecting a quality supplier, examining the aluminum scrap quality, gathering, sorting, packaging, and transporting it to the customer’s factory for further processing.

3. Financial Solutions

Our financial solutions enhance our customers’ supply chain operations, smoothing out financial processes.

4. Logistics & Warehousing

With experience in collaborating on logistics and warehouse management with reliable partners and clients from various global business groups, we have expertise in the logistics management process, whether it is document handling or complicated international regulations. We can transform complex tasks into straightforward ones. Moreover, we excel in managing the timely delivery of goods with flexible transportation design tailored to specific needs. We select high-quality equipment throughout the process and customize the packaging for international transport.

We have contributed to developing standard packing, enabling the international transport of aluminium scrap. In this context, the key benefit of end-to-end supply chain service is that we can significantly reduce the burden of logistics and warehouse management for our business clients, allowing them to focus on other aspects of their businesses.

5. Inventory Management

As a result of our precise demand sensing, our business clients consistently have a sufficient supply of raw materials and products ready for the manufacturing process and market demand. Regardless of the crisis or when our business clients need aluminum scrap, we quickly connect with our supplier network to ensure rapid collection and prompt delivery. This ensures that our clients do not have to worry about shortages of raw materials and products.


How An End-to-End Supply Chain Service Differs

From the supply chain problems mentioned above, the main cause of these issues arises from providing supply chain services in the traditional format, which means following only some of the customer’s requirements rather than considering the entire supply chain process.

As a partner, SCG International provides end-to-end supply chain service solutions, including a strong supplier network, demand sensing and consolidation, sourcing validation and inspection, financial solutions, logistics optimization and warehousing, inventory management, and marketing and distribution.

We can source raw materials for industrial, construction, and residential use, as well as packaging and energy products. All services are designed to support customers and enable them to run their businesses efficiently with solutions, forecasts, and challenge estimates.

SCG International provides end-to-end supply chain visibility to enable processes to run smoothly, respond to change rapidly, be customer-centric, and use the benefits of technology for agility and risk management. Therefore, our end-to-end supply chain service provides a more modern, transparent, and flexible service than traditional supply chain services. SCG International stands beside its customers during a crisis to provide support and solutions.

Now you have discovered the benefits of our end-to-end supply chain service; if you are looking for a full-service supply chain company, you can consult SCG International. We provide end-to-end supply chain services and have over 40 years of experience in supply chain and sourcing management in more than 50 countries, maintaining a global network worldwide.