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Article Check - Yes - You CAN Compete with Offshore - Part II
Some years ago while researching and writing a book on the subject of industrial Buyer & Sales relationships, I also wrote a follow up chapter for future endeavors which has rolled around in the back of my mind ever since. The piece was entitled “The Value of Value”.Alright, I admit it was and could still be, construed as something of a Procurement diatribe but the purpose both then and now is to assist venders recognize and comprehend how Buyers perceive and respond, to the levels of service we receive from distributors and manufacturers when there are pr
Onyx marble has excellent uses. Onyx marble is used most often as a fireplace surround; bar top, or as a small island as it transmits light. It is also used as cabochons and for building material. Careful consideration is required when using onyx marble at your residential area. Think of your own lifestyle and conditions before purchase onyx as a countertop surface or a bar top.Other uses further include wall cladding, light duty home floors, sinks base, and tables. Onyx could also used for novelty items such as vases, urns, wine goblets, lamps and bowls. I
ALIGNMENT TO REQUIREMENTS
A big part of competitiveness is found in the alignment of the product to the customer’s requirements -- if it does what it’s supposed to do, they’re gonna consider buying it. This was discussed back in Quality of the Product, but it also means that you, as the producer, have to consider needs that the customer has in keeping his/her own costs down. You will have done that, of course, when you set up initial sales with the client, but it should be done on an ongoing basis, too.
RESPONSIVENESS TO NEEDS
Do you know what your customer is dealing with, and what new challenges are being faced by that company? Worthington Steel, based out of Columbus, Ohio actually makes it a point to send front line staff out periodically to client facilities to see how the product is being used. What good is that? It allows Worthington to make small changes in either construction or delivery that mean a big difference to the client. And often it’s ONLY the front line staff who can identify these types of requirements – sometimes the client doesn’t even know the opportunity is there. Staff can recognize this, and bring the ideas back to your plant where changes can make your product even more valuable to the client. What’s the outcome? Let’s look: Worthington is a leading diversified metal processing company with $3 billion in sales, and 8,000 employees in 63 facilities. You can review their results at www.worthingtonindustries.com.
Get your staff involved in improving your responsiveness to customer needs.
ABILITY TO DELIVER TO SCHEDULE
Believe it or not, this is the area where an American company has the best opportunity to compete with offshore. Here’s why. When production is moved to another country, the lead time on getting that product back here to the U.S. moves to an average of 8 to 10 weeks. That’s 2 ? months, most of which is transportation and loading time. And here’s the kicker – all of that new product has to be inspected. Now that may not sound like a big deal, but if your client is bringing a shipload of new product in (which is often necessary to keep transportation costs manageable), the inspection time alone is a very significant investment in time and manpower. And what happens if something is wrong? THEN there have to be plans and facilities in place for either shipping it back OR for fixing the problem back to spec. Can you honestly say there isn’t opportunity here for you to provide a much more competitive product? American companies should be able to very significantly reduce lead times; and errors in manufacturing can be much more quickly rectified when they do occur.
COST TO THE PURCHASER
This is the second area of great opportunity for you, the producer, because it has to do with your cost of production – something that is mostly within your control. Now you will holler that you can’t control the cost of supplies and labor. But the fact is that you CAN control the cost of production, and there is very often ample opportunity for improvement here. Have you used the four process mapping approaches? Do you know where in your line the value and non-value steps are? Have you applied the Lean principles relative to the Five Ss, Preventative Maintenance, and Predictive Maintenance. Most business owners have at least put these last three in place, but often a systematic review of processes has not been done – and there is a lot of opportunity in process mapping! Edwards Deming felt that as many as 70% of process steps are waste steps, and identifying and eliminating them can drastically reduce your cost of producing a product. This is a prime area for investment in outside help, because the return on in
Part 4 of Having Your Successful BusinessCongratulations! You have learned “how much pie” you want, how successful people talk, and what the best vehicle is to achieving your goals. In this final section, its time to discover why you haven’t started yet.The biggest thing that holds people back is fear. Fear can be defined like this: False Evidence Appearing Real.It can be comforting to know that each morning we wake that nothing unusual is going to happen.Wake up, go to work, come home, eat dinner, watch some TV, go to bed, and repea
Do you know what your customer is dealing with, and what new challenges are being faced by that company? Worthington Steel, based out of Columbus, Ohio actually makes it a point to send front line staff out periodically to client facilities to see how the product is being used. What good is that? It allows Worthington to make small changes in either construction or delivery that mean a big difference to the client. And often it’s ONLY the front line staff who can identify these types of requirements – sometimes the client doesn’t even know the opportunity is there. Staff can recognize this, and bring the ideas back to your plant where changes can make your product even more valuable to the client. What’s the outcome? Let’s look: Worthington is a leading diversified metal processing company with $3 billion in sales, and 8,000 employees in 63 facilities. You can review their results at www.worthingtonindustries.com.
Get your staff involved in improving your responsiveness to customer needs.
ABILITY TO DELIVER TO SCHEDULE
Believe it or not, this is the area where an American company has the best opportunity to compete with offshore. Here’s why. When production is moved to another country, the lead time on getting that product back here to the U.S. moves to an average of 8 to 10 weeks. That’s 2 ? months, most of which is transportation and loading time. And here’s the kicker – all of that new product has to be inspected. Now that may not sound like a big deal, but if your client is bringing a shipload of new product in (which is often necessary to keep transportation costs manageable), the inspection time alone is a very significant investment in time and manpower. And what happens if something is wrong? THEN there have to be plans and facilities in place for either shipping it back OR for fixing the problem back to spec. Can you honestly say there isn’t opportunity here for you to provide a much more competitive product? American companies should be able to very significantly reduce lead times; and errors in manufacturing can be much more quickly rectified when they do occur.
COST TO THE PURCHASER
This is the second area of great opportunity for you, the producer, because it has to do with your cost of production – something that is mostly within your control. Now you will holler that you can’t control the cost of supplies and labor. But the fact is that you CAN control the cost of production, and there is very often ample opportunity for improvement here. Have you used the four process mapping approaches? Do you know where in your line the value and non-value steps are? Have you applied the Lean principles relative to the Five Ss, Preventative Maintenance, and Predictive Maintenance. Most business owners have at least put these last three in place, but often a systematic review of processes has not been done – and there is a lot of opportunity in process mapping! Edwards Deming felt that as many as 70% of process steps are waste steps, and identifying and eliminating them can drastically reduce your cost of producing a product. This is a prime area for investment in outside help, because the return on i
The first impression is an important impression as it sets the tone of future relationship. Especially in a business, a negative first impression can cause you loss in financial terms. Reception desks furniture plays an important part in creating this very important first impression. If you love a classic or traditional look for your interiors then classic reception desks should appeal to you. Ken Rand offers a range of stylish classic reception desks that are available in innovative designs along with fine craftsmanship. These designs are based on modular units
Get your staff involved in improving your responsiveness to customer needs.
ABILITY TO DELIVER TO SCHEDULE
Believe it or not, this is the area where an American company has the best opportunity to compete with offshore. Here’s why. When production is moved to another country, the lead time on getting that product back here to the U.S. moves to an average of 8 to 10 weeks. That’s 2 ? months, most of which is transportation and loading time. And here’s the kicker – all of that new product has to be inspected. Now that may not sound like a big deal, but if your client is bringing a shipload of new product in (which is often necessary to keep transportation costs manageable), the inspection time alone is a very significant investment in time and manpower. And what happens if something is wrong? THEN there have to be plans and facilities in place for either shipping it back OR for fixing the problem back to spec. Can you honestly say there isn’t opportunity here for you to provide a much more competitive product? American companies should be able to very significantly reduce lead times; and errors in manufacturing can be much more quickly rectified when they do occur.
COST TO THE PURCHASER
This is the second area of great opportunity for you, the producer, because it has to do with your cost of production – something that is mostly within your control. Now you will holler that you can’t control the cost of supplies and labor. But the fact is that you CAN control the cost of production, and there is very often ample opportunity for improvement here. Have you used the four process mapping approaches? Do you know where in your line the value and non-value steps are? Have you applied the Lean principles relative to the Five Ss, Preventative Maintenance, and Predictive Maintenance. Most business owners have at least put these last three in place, but often a systematic review of processes has not been done – and there is a lot of opportunity in process mapping! Edwards Deming felt that as many as 70% of process steps are waste steps, and identifying and eliminating them can drastically reduce your cost of producing a product. This is a prime area for investment in outside help, because the return on i
A recent movie starring Richard Dreyfus and Bill Murray tells the story of a man desperately trying to be included as a member of his psychiatrist's family. Whenever the doctor attempted to exclude him, his family would respond by asking, "What about Bob?"In the midst of all the work relating to diversity in the workplace, one group often gets excluded. When affirmative action categories are closely examined, we find that nearly everyone is covered in some way except this group. In discussions of equity, this group is excluded. As we struggle with
COST TO THE PURCHASER
This is the second area of great opportunity for you, the producer, because it has to do with your cost of production – something that is mostly within your control. Now you will holler that you can’t control the cost of supplies and labor. But the fact is that you CAN control the cost of production, and there is very often ample opportunity for improvement here. Have you used the four process mapping approaches? Do you know where in your line the value and non-value steps are? Have you applied the Lean principles relative to the Five Ss, Preventative Maintenance, and Predictive Maintenance. Most business owners have at least put these last three in place, but often a systematic review of processes has not been done – and there is a lot of opportunity in process mapping! Edwards Deming felt that as many as 70% of process steps are waste steps, and identifying and eliminating them can drastically reduce your cost of producing a product. This is a prime area for investment in outside help, because the return on i
Distribution packaging provides the first and most important line of defense against the hazards of the distribution environment. A well-designed distribution package can make an immediate and significant contribution to a company’s bottom line by reducing or eliminating product damage and decreasing transportation costs. A properly designed package will also enhance company image.The packaging design mission is to achieve optimum cost by balancing the sensitivity of the product with the protection provided by the packaging to match the hazards existing in
IN SUMMARY…
There are six areas where a domestic company can improve its competitiveness with offshore. They are:
1. Improving the quality of the product
2. Improving the friendliness of the service
3. Securing better alignment to customer requirements
4. Enhancing responsiveness to customer needs
5. Providing better delivery to schedule
6. And reducing cost to the purchaser through Lean applications.
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