Partnership Manufacturing

The Partnership Manufacturing concept brings you as close as possible to have your own production at IQ Metal.

Definition

In industrial contexts, the term "partnership" often takes on the opposite meaning, particularly when the major players summon their smaller collaborators in the name of partnership only to impose their agendas, demands, and requirements. Thus, the concept of "partnership" becomes negatively charged, signifying the diametrically opposite qualities of imbalance and inequality.

In contrast at IQ Metal we believe that genuine partnerships involve mutual adaptation and shared benefits, turning the word 'partnership' into a symbol of true collaboration rather than dominance. And above all, ensuring that both parties achieve benefits and advantages.

IQ Metal Partnership Manufacturing™

The origin of the IQ Metal Partnership Manufacturing™ concept was rather fortuitous. Over a decade ago, a Danish director found himself at a Polish factory when, coincidentally, two significant Danish prospects independently reached out the same week. Both acknowledged IQ Metal's growth and positioning in Northwestern Poland. Recognizing the need to establish production outside Denmark but lacking the time and funds for a greenfield startup, they suggested that the Danish IQ Metal director consider insourcing their production to the IQ Metal plant in Szczecin. Shortly thereafter, IQ Metal Partnership Manufacturing™ became a registered trademark, born out of a one-week fortuitous event.

In 2014, IQ Metal faced the move from a smaller factory to a newly built domicile, but with the first IQ Metal Partnership Manufacturing™ long term contract signed, the new factory premises were built even larger.

In the following years, the factory premises expanded, and as more long-term IQ Metal Partnership Manufacturing™ contracts were established, activities grew, and new competencies were developed.

With over a decade of proven success, IQ Metal Partnership Manufacturing™ offers companies a strategic choice to outsource manufacturing or entire value chains. Embraced by various industrial manufacturers, this concept provides the benefits of the closets they get in owning their own production facilities, whether in Poland or elsewhere. Compared to establishing a greenfield, IQ Metal's Partnership Manufacturing™ enables implementation 4-5 times faster, minimizing risks, improving cash flows, and transforming fixed costs into variable for a leaner balance sheet.

Throughout the years, IQ Metal has evolved into a group of manufacturing companies that both complement and supplement each other in terms of competencies, capacity, knowledge, and specialization. IQ Metal Partnership Manufacturing™ originated from a few random phone calls but has become an exceptionally robust strategic platform. In true partnership spirit, it brings advantages for both IQ Metal and our strategic partners. IQ Metal Partnership Manufacturing™ is a strong belief and embedded within the IQ Metal corporate culture and DNA. As we used to to say: 'We are big enough to serve, but small enough to care."

Why is Partnership Manufacturing relevant to you?

IQ Metal Partnership Manufacturing™ is relevant because it emphasizes collaboration and strategic alignment between IQ Metal and our partners. It allows IQ Metal to work closely with our partners, to understand the needs of our partners, and to invest and develop solutions that are 100% tailored to the nature of the individual needs and requirements. By focusing on partnership, we can leverage our combined strengths, share risks and rewards, and work towards common goals. This not only leads to better products but also fosters innovation, improves efficiency, and reduces costs. This approach elevates collaboration far beyond the traditional customer versus supplier paradigms, fostering a dependable partnership. The partnership is envisioned as long-term, sustainable, and often leads to a degree of supply chain integration and a level of openness and transparency not achievable in conventional models. Ultimately, supporting one of the most crucial issues in an industrialized and fiercely competitive world, bringing unique mutual competitive advantages.

Interested in your own production at IQ Metal

Case stories

Realize cost savings by leveraging value chain integration

IQ Metal's customer is one of the major players in their industry in Scandinavia, operating in an extremely competitive market. After over 10 years of collaboration with the customer, it was a question of winding down or evolving. The latter was chosen, replacing previous price negotiations with strategic workshops. This transformation elevated the classical subcontractor vs. customer paradigm to a genuine partnership.

An IQ Metal Partnership Manufacturing™ agreement is always individually tailored to solutions that create the most value for the partnership. In the current case, the partnership led to an expanded collaboration and integration across the partners' value chains. While upstream activities are often outsourced, the most significant savings were realized through downstream integration. In reality, IQ Metal insourced activities that were previously handled by the customer. Today, IQ Metal manages inventory, assembly, and shipping not only of the products IQ Metal already produces but also of third-party products, ensuring comprehensive solutions and significant cost-effectiveness. Such require a high level of transparency, openness, and mutual trust in the collaboration—all aspects ensured through a mutual long-term IQ Metal Partnership Manufacturing™ agreement.

The customer gained benefits as follows:

  • The benefits of the value chain integration have triggered 2-digit percentage cost saving, which results in huge competitive advantages, beneficial for the customer as well as for IQ Metal.
  • In addition, significant cashflow improvements by converting fixed cost to pure current-/variable costs.
  • Extremely fast integration and execution. In a few months, IQ Metal managed to rent, furnish and move premises formally leased and operated by IQ Metal.
  • Within few months, from concept, over decision to the benefits of a new and efficient low-cost setup in Poland.

Danish supplier of truck mounted loading cranes

The new partnership customer is a well-known and significant supplier of truck-mounted cranes. In the context of planned growth, expansion, and the design of a new factory and headquarters, the decision was made to outsource a substantial part of their own production. In the qualification and decision-making phase, IQ Metal was chosen as the new supplier, despite the fact that the competing Polish supplier was already an experienced and existing supplier to the customer. Ultimately, the IQ Metal Partnership Manufacturing™ concept played a decisive role. The project involving the relocation of the existing production including the transfer of knowledge and technology is expected to be realized according to the plan in the first half of 2024.

The customer gained benefits as follows:

  • Timely transfer of an entire Danish factory incl. key machinery, technology and know-how, without shutting down deliveries to customers.
  • First-generation outsourcing, but the closest the customer gets is by having its own production in Poland.
  • A cross-border, long-term partnership between a Danish customer and a larger Polish subcontractor with Danish DNA eliminates cultural misalignment and creates business certainty.
  • Although the customer comes with deep skills and knowledge, the customer gains access and great benefits by adding IQ Metals' framework of additional knowledge from the cooperation with other demanding industries.

Large enterprise seeking new Central European high volume low cost supplier

A Northern European management & supply chain consulting firm approached IQ Metal on behalf of one of the largest European suppliers of commercial vehicles. They were in search of a new high-volume supplier for demanding welded constructions.

After a lengthy and intensive process, IQ Metal Partnership Manufacturing™ was chosen as a primary supplier, handling thousands of tons of steel in a customer-specific, high-tech setup. All aspects are governed by a shared partnership contract.

With the implementation of the major semi-automotive customer, there came demands for substantial investments in automation and capacity. The financing was realized with reference to the long-term commercial contract.

The customer gained benefits as follows:

  • IQ Metal had no specific branch knowledge and experience, but the customer took advantage of a highly developed, matured and competent set-up in demanding welding solutions.
  • IQ Metal were capable to raise a significant million investment necessary for realizing the partnership case.
  • Welding competences were crucial and IQ Metal presented an organization with 3 IWE´s (International Welding Engineers). The highest level of certified welding competences.
  • IQ Metal designed and established a 100% dedicated customer-oriented value stream, where the knowledge of employees and specialists was tailored 1:1 to meet the customer's needs and specifications.

First generation outsourcing without risk and implemented 5 times faster than a greenfield standalone case

A larger Scandinavian manufacturer and supplier of heating solutions for private homes faced ongoing demands to achieve further savings in their production and supply chain, all while encountering significant requirements for investments in product and market development. The ownership decided to outsource a significant portion of their production. IQ Metal entered the scene, and over the course of a year, the production transfer from the Scandinavian country to IQ Metal in Szczecin was established. IQ Metal set up a dedicated value stream, trained specialists, and provided management and supporting functions, all 100% devoted to the customer's products and needs. Since the outsourcing to IQ Metal Partnership Manufacturing the customer has established their own large factory in Poland. However, the partnership with IQ Metal continues, now under a new IQ Metal Partnership Manufacturing™ contract, with no expiration date.

The customer gained benefits as follows:

  • Saved time and funds by utilizing the mature set-up of IQ Metal in Szczecin, Poland.
  • Gained benefits of new and lower cost setup in Poland.
  • Elimination of uncertainty and risk (in contrast with a greenfield solution).
  • Significant cashflow improvements by converting fixed cost to pure current-/variable costs.
  • Through the partnership with IQ Metal Poland the partner-customer gained valuable experience enabling the customer to establish their own set-up several years later.

Related documents

IQ Metal is complying with domestic legislation regarding health & safety.
In the daily operations the working environment is a natural part of the ongoing striving for continuous improvements.

Our company is certified against the requirements of the ISO9001:2015 standards, EN 1090 / EN 3834.

Our company has a food approval from the Ministry of Environment and Food of Denmark.
Control report (only in Danish).

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