Case Study Of Rostfrei Steels Private Limited

Case Study Of Rostfrei Steels Private Limited

The question that arises is why are tanks needed at all? Even though production, in most cases happens continuously, tanks play an essential role in almost all the industries, making the tank industry really important. One needs good quality tanks in order to transport the goods from one place to another safely, to store the goods properly.

A lot of industries are involved in manufacturing just a simple tank, as it sounds. Manufacturing, planning, architecture and many more industries and people are associated with making a tank as per specific requirements.

The worst thing that can happen is being cheated by the Rostfrei steels Private Limited, which can cause serious troubles for a customer, being the reason behind huge losses or at times business failures.

It is believed that the governing rules and standards behind the manufacturing of a tank are very much in place in almost all the countries, thereby making it difficult for the tank industries to cheat its customers. Well, which of course is true to only some extent. Cheating happens in almost all and every manner, in spite of all the rules in place.

I belong to the manufacturing industry and manufacture liquids for various other industries. For a manufacturer of any form of liquids, tanks play a vital role. We need tanks at all times to store the liquids once they are manufactured and they must be of the best quality in order to avoid leakage.

It’s the most at risk when the liquids are being transported from the manufacturing plants to the various sites and can have hazardous implications if it's leaked when in transit.

We have been getting all our tanks manufactured by the Rostfrei steels Private Limited. And have received tanks of utmost quality at all times. But since the time the original owners have sold their business to Mr. Thompson, who is now the owner of Rostfrei steel Pvt Ltd., the scenario has changed drastically.

We have been cheated on different fronts, in different ways, a few of them being the following:

CASES

• Late Delivery:- Cheating does not only mean providing goods of compromised quality. Sending in late deliveries with no response and resolution to the problem is also a way of cheating the customers. We continuously received the tanks late, due to which we suffered innumerable losses. The orders were delayed and towards the end of the contract tenure, we had to stop the manufacturing plant as there were not enough tanks to store the liquids that were being manufactured. We had to face a lot of canceled orders and also lost a few clients due to delayed deliveries.

• Low-quality Product Used during manufacturing:- The products that we received were of extremely poor quality. The tanks were catching rust easily, we were being forced to replace the tanks more frequently, thereby, increasing our costs. All these clearly implied that our manufacturer was using products of low quality while manufacturing the tanks, to reduce their costs and increase their profits. 

• Leakage Problem:- There was a time period where we had our liquids, which in most cases were stored and kept for a sufficient amount of period before despatched, were leaked in the plant itself, primarily because the tanks were not made properly. There were severe losses that occurred because of the leakage, loss of product being the main one. The orders were delayed and canceled, the plant was polluted, manufacturing halted. 

• Nut & Bolt galvanization Issue:- This became one of the major reasons why we had to terminate our contract midway with the company. Almost all the tanks were of poor quality and we started facing issues of nut and bolt galvanization almost every few days. The tanks were catching rust quite easily along with the nuts and bolt’s, making them weaker and unhealthy for our manufactured liquids. This, in turn, ruined a lot of our product, causing a huge loss to our company. 

•  Wrong item delivered:- We being a liquid manufacturing company have really particular specifications for the kind of tanks that we require to store our products. The manufacturing company started delivering wrong items very frequently, items that did not suit our requirements. Once delivered, there was nobody to hear our grievances easily, the orders took time to be replaced, which in turn delayed all our further processes even further.  

• After receiving the amount they didn't receive the call:-   A new technique that the company started adopting was, once we had made the payment for our order, they stopped taking our calls either for queries or grievances. Our payments were being made in advance but our orders were being delayed, and there was nobody available at any point of time to resolve it. We suffered huge losses due to this and also ended up losing clients. The workers were being paid even after being idle since the production was stopped due to the shortage of storage tanks.

     SOLUTIONS

There were barely any solutions in place to avoid getting cheated by the company apart from withdrawing our contract with them and filing a lawsuit.

Verbal resolutions were not possible as the company was not willing to mend their ways, in spite of continuous warnings.

There were various ways in which our company was being cheated by this particular manufacturing company even after having strict manufacturing guidelines by the government in place. One who wants to deceive its customers will always find a way.

Companies before deceiving the customers forget that eventually the customers will stop trusting them and will nullify their contracts with them. Customer satisfaction is the key to any successful business.