Industry Partnerships

Currently the business model of my corporation is to sell high demand Tech 2 modules via main trade hubs.  So far this has been successful and profitable.  Stock turnover has remained positive largely due to the increasing range of modules the corporation can produce in sizable batches.  Like all good manufacturing companies what and when items are produced is driven by sales and profit margins.  While this will remain the primary go-to-market approach, I am interested in exploring opportunities to provide direct industrial support to corporations that lack their own industrial base or would like to supplement what they have.

While establising partnerships is a goal of this corporation, I believe that as things currently stand it is probably 6 months away from where it needs to be to produce the full spectrum of modules and ships that meet the demands of a larger corporation.  That said I would be interested to begin discussions with anyone that would like to explore mutually beneficial opportunities. Having these conversations early would only enable things to occur more smoothly for both parties.

What I would like to and am willing to discuss is the sale of produced items at below Jita rates, with negotiated delivery services within high sec and select low sec systems as well as the purchase of bulk minerals and moon products at competitive rates.  If there is of interest to or you would like to discuss aspects of this further please leave a message below or contact me via twitter direct message.

Ship Production

Tech 2 module production is and most likely will be the Corporations primary income source for the next 12-18 months. That aside, a long term goal is to have a full Tech 2 ship production capability from frigates to battleships before adding capitals and possibly super capitals. Something that will be key when looking to establish connections with other corporations.

To get things started the initial focus will be on Tech 2 Frigates before moving up in hull size. The BPOs are cheap and R&D can be integrated without disrupting existing plans. Another side benefit of this will be that Corp labs can be maintained at near full utilisation 24hours a day.

Trade Logistics

Managing the logistical aspects of any production effort is one of, if not the most critical factor in a profitable industrial corporation. This includes not only managing your supply of materials that are required to feed the production machine, but also the distribution and sale of the produced items. Any inefficiency in these areas will directly eat into the overall profits.

When I established my corporation I had very limited capital after purchasing a POS, arrays, BPOs and fuel. What was left went to paying for materials to produce a small number of T2 mods. I then began the cycle of produce, transport to market, sell, buy replacement materials (rolling in profits), transport back to POS before repeating the process.

While a necessity to build capital, this was very labour intensive and inefficient. Every day I was selling and buying items was time that I was not producing which effectively was costing isk. To minimise this I started buying materials for a second and third batch. This allowed me to queue items for production so that when selling and buying I always had a batch being produced. While idle time was minimised it was still very labour intensive.

This brings me to where I am now, which is buying materials twice a month and putting items on the market once a week. So far this has been good resulting in reduced micro management, however I still need to improve how i am monitoring my buy and sell orders.

The optimal way to improve this is through a dedicated trading character which I have deliberately being holding off on to maximise production capacity. I know time has come where I need to bite the bullet and create this character. When I do the character will be out of corp and publicly known. This I hope will allow me to being dealing directly and openly with other corporations without exposing my industry corporation. Something I know is necessary to take the step in expanding the corporations footprint.

April Sales Activity

It will come to no surprise that profit for the month was down. Due to uncertainty relating to ‘Burn Jita’ as well as the escalation to inferno a decision was made that all Tech2 items would be held back from the market until May.

In general the Corp production capabilities continued grow. This included to two new highly profitable Tech2 modules entering the production cycle. In addition, there was more focus on developing R&D skills across the board as well as the introduction of a new member.

Major procurement for the month was directed towards a new Component Assembly Array and approximately 70m isk in BPOs for a new Tech2 module that will enter production this month.

The immediate focus this month will be the sale of modules produced in April. There is likely to be two new characters that will start producing modules. This should push concurrent Tech2 module production capabilities to around 45 (450 units per batch uninterrupted). To assist with logistics an addition character will start transporting goods by freighter. A racial freighter skill book and second freighter will be purchased – the freighter probably June. Lastly additional Tech2 module BPOs will be purchased that extend from the most recent BPO set obtained.