If you’re running a manufacturing company, then you obviously know a fair amount about the industry you’re in. However, this can only take a company so far. Despite your extensive knowledge of the market, you still may be falling short of targets, or failing in some other way. Some problems are obvious, but other may not occur to you. Here are some things which could be holding your manufacturing back.
First of all, your relationships with suppliers. If you’re in the secondary sector, then you’re probably dealing with several different suppliers at once. It may be time to step back and ask yourself if you’re really getting the best out of all of them. If you think you could be getting larger orders for a lower price, then start up negotiations. Draft a new offer that’s heavily in your favour, and your supplier should meet you somewhere in the middle. If you’re dealing with a little-known company, then consider switching to someone more established like SSI Schaefer International. Remember that larger businesses can afford more generous agreements. Your supplier and the way you deal with them can affect your whole manufacturing process, so pay attention!
Another big thing that could be holding you back is your priorities in the manufacturing process. Specifically, weighing up high yields and customer satisfaction. Some manufacturers put way too much emphasis on having high yields, thinking that this is a measure of efficiency. If you’re still doing this, and you’re wondering why your sales figures are so weak, then there’s your answer! You should be prioritising things based more on the customer, rather than how fast the company is moving. Of course, it’s good to have quotas, but try to keep them a little flexible. This will make more room for customer satisfaction and improved marketing. Remember that if no one is buying from you, you’ll cease to have a business!
Finally, the frequency of your management reviews. If you’re wondering what one of these is, then you’ve got a long way to go! Management review is the process of your upper management analysing data on how the manufacturing process is running. Then, looking for possible improvements based on this information. If these sessions feel like a massive panic, then you may need to make them more frequent. In the best case scenario, your management reviews should be preventative. When you’re analysing data more frequently, you can see risks and threats emerging well in advance. This means you’ll be able to stamp them out before they turn into a full-blown crisis. Most manufacturing companies run these twice to thrice a year, but if you’re struggling go ahead and make them more frequent. All the time you spend recovering from crises is time you could invest in more important areas.
Scour your business for these kinds of mistakes, and work on eliminating them. Making it big in manufacturing isn’t easy, especially today. However, if you’re in-tune with every last factor, keeping the company healthy becomes so much easier.