Diversified Rubber Products in Small Lots KCS Enterprise- Creating High Added Value Through Customization
KCS Enterprise Co., Ltd. located at Changhua Coastal Park is a specialized manufacturer of rubber bonded washers as well as a variety of customized rubber products with nearly 35 years of history. 30% of KCS’ sales are contributed by the domestic market and the remaining 70% of sales are contributed by export. KCS products are exported to many countries around the world, such as Europe, USA, Japan and India. 80% of its products are applied to building materials to prevent leaking roofs, while the rest of 20% are used in areas like building materials, 3C, anti-vibration in cars and solar panels. The current product strategy of KCS is “to focus mainly on manufacturing rubber bonded washers, and at the same time, developing other rubber products or stamped parts for customers.”
Customized Solutions Which Any Subtle Change May Change the Final Performance
KCS has a powerful R&D ability in rubber products and its rubber bonded washers have been able to compete with other similar articles from European and U.S. manufacturers. Most of the materials used by its Taiwanese and Chinese competitors are not EPDM, so their products are not high-temperature and ozone resistant, their rubber products are prone to cracking, and the quality is not stable, either. However, KCS can adjust the tensile strength, hardness and many other parameters of rubber and develop customized solutions as per customer’s request. It usually takes a lot of time in each customization and product development for KCS to discuss and communicate with customers in order to reach customers’ requirements and standards. Even the product development has been finished, it still requires a series of tests with some further adjustments. Each adjustment is time consuming. It can be described as a successful R&D project only after customers finally decide to place a large amount of orders.
The standards for customized products definitely have to be agreed by both parties and KCS did spend a lot of time and money in every customized product project. Although KCS has completed so many projects, it still has some experiences of unsuccessful R&D projects in which the procedures of discussion and R&D had been even finished. KCS’s customization orders can be divided into 3 categories. The first one is to develop out of nothing, which means customers submit their ideas and KCS makes the ideas into real products after several times of discussion with customers; the second one is to produce according to customers’ drawings; and the last one is to produce with customers’ samples. The positioning of KCS’ product customization service is “to satisfy customers’ demands and produce the most suitable products.
The Higher the Price, the Better the Quality
KCS Nevers Compromises on Quality
Some customers expect to buy lower-price and higher-quality products. But for KCS, it will never compromise on quality easily. If customers are looking for cheaper rubber products, KCS is, of course, able to produce for them, but customers often ask for higher quality at prices of low quality products made in China. Though trying to fully satisfy customers’ demands is KCS’ mission statement, it will not change its direction due to price competition. If it is necessary to use cheaper materials with less stable quality to save cost, KCS is not willing to do it and will not do it at all. For KCS, this will only bring itself into a messy situation causing ambiguous positioning and unclear strategy. In a nutshell, it will not generate any favorable results for KCS.
Short and stable lead time is also one of KCS’ strengths. The average lead time of KCS is within 30-60 days. The batch production management system allows KCS to immediately make amendment and response and avoid unnecessary loss. Although the current law enforcement regarding the working hour limit in Taiwan has caused significant impact on the fastener industry, KCS is still able to immediately adjust its management system and will not be forced to extend its lead time due to change of governmental policies, which may cause inconvenience to customers.
The advantages of KCS in competition are its strong R&D ability and excellent & efficient customer service. The long-term, stable and mutually beneficial collaboration with customers represents the high stability of KCS. In terms of future business running strategy, KCS will continue to manufacture high quality products and offer superior customer service, as only the highest quality of service is provided in the discussion of R&D or after-sales service can the added valued of products for customers be greatly increased. In addition, KCS will also continue to improve its logistics system in order to achieve a seamless connection between its capacity and order acceptance and steadily develop new products and customers. KCS has obtained the TAF certification in 2016 and its next goal is to be certified to ISO 16949 within 3 years and maintain good quality and increase the trust and satisfaction from customers. KCS’ marketing strategy is not achieving very high growth but at seeking for customers that can establish long-term collaboration and mutual growth with it to gain its own presence in the fastener industry.
KCS contact: Mr. Matthew Liang (email: inquiry@kcs.com.tw)
