There’s no question that trusted relationships are essential to doing business today. While it can take years to build trust, it takes just seconds to lose it. In fast-moving industries, where multimillion-dollar trades are commonplace, trust is the bedrock of relationships.
“The relationship we have built up with our producers and our end users is vital – they trust us,” says Rajesh Saraiya, CEO of Steel Mont, a global trading firm with a focus on steel trading.
“Not only do they trust me but they trust my team. They say, ‘OK, we have this issue and we want to solve it. We have time, but you are experts.’”
“The relationship we have built up with our producers and our end users is vital – they trust us.”
With more than 30 years of experience in trading steel and other steel-related commodities, Saraiya has established a reputation as a leader in the industry. Before moving to Düsseldorf, he gained a master’s degree in aeronautics from the Kyiv Civil Aviation University and spent time learning the local language and exploring business plans.
Despite his successes, Saraiya has faced his fair share of challenges on his journey to becoming CEO.
“The biggest challenge in life is understanding that having an idea is only one percent of what you need. You need a team and good timing – if you don’t achieve something in a set time, you miss the chance,” he explains.
Analyzing data
In the international trading space, technological innovation can provide a much-needed competitive edge. Saraiya has made an effort to embrace the latest logistics software that monitors ships, stock and cargo and finance software to ensure the business has all the tools at its disposal to meet customer needs effectively.
“What helps in international trade is analyzing data in real-time and passing it on to your buyers and sellers, taking their advice as fast as possible,” he says.
“This is what we have in our hands. This information can be obtained in a digital way, so making things work digitally is very important.”
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When dealing with such a range of factors, including differences in time zones, currencies, tariffs and exchange rates, having the right software not only saves a great deal of time, but it also ensures compliance is as effective as possible.
“We can follow the compliance issues, the sanctions checklist and when the payment is done,” Saraiya notes. “Banks also like it because it’s trusted software, so they know our financial position.”
Saraiya mentions that the software used by Steel Mont enables banks to access the data the company enters and bank compliance staff can quickly check this data and create payment instruments.
Supplier focus
For Saraiya, supply is the most important aspect of the industry, alongside the cost and the quality. When a major steel plant starts production, it needs a close partner to bridge the gap and buy the products. If a supplier is suffering from high costs, they may try to reduce the raw material input, leading to issues with the quality of the final product.
“It’s very important to know where the iron ore is coming from, where the scrap is coming from, what the quality is, the price of these raw materials and so on,” he says.
“It’s very important to know where the iron ore is coming from.”
Headquartered in Nuremberg, with a production site in Soest and a warehouse in Deggendorf, Remag Metals is a partner of Steel Mont and represents one of the key local, German suppliers Saraiya and his team work with. Establishing these connections early makes for smooth business operations later, he explains.
“You should have a majority of local suppliers so that you don’t end up with issues,” he says. “We have been working with many local suppliers, mainly steel plants. Once the relationship has been built up for a number of years and there is a disruption, you’ll know what to do.”
Detail-focused leadership
For Saraiya, every person is their own CEO and leads themself, in the same way as leaders should lead their businesses. For a leader to be truly successful, Saraiya believes each CEO should know everything about their business, inside and out.
“It’s very important to know every detail, every production step and all physical and mechanical properties,” he says. “If you know your business and each process in detail, then you can share this knowledge with your team members.”
