This newsletter will focus on providing insights on how to increase profit margins and performance without making any new capital investment. I call this finding your True Profit™.
The Future of Manufacturing
The future of manufacturing is not in the quality of the products being made. It's in the speed at which those products can be delivered, the services that support them, and the relationships you are able to build.
Technology has allowed manufacturers to consistently improve the quality of the products they make. And since many manufacturers use similar technology - robotics, automated assembly lines, etc. - then quality control is not a differentiating factor.
It's about how fast you can get the product in the hands of your customers. It's about the kind of service can you offer when things go wrong. It's about other complementary services you can offer to your customers. Can you offer to help them design the product? It's about the relationship you have with customers and having their best interests in mind.
If you have speed to market and can add additional value, but have no relationship with the customer, then you are a vendor (and you will be treated like one).
If you have speed to market and a relationship, but can't add any additional value, then you are a one-trick pony.
If you have a relationship and additional value you can offer the customer, but are slow to market, you are a tortoise and will probably be lapped by the competition.
If you have speed to market, additional value to offer, and a relationship with the customer, then you have a competitive advantage.
The future of manufacturing success includes developing new ways to help your customers.
It's no longer good enough to make something better than your competitor. You need to offer more value than your competitor. You need to have a stronger relationship than your competitor. You need to be faster to market than your competitor.
If you are a manufacturer, what additional value are you offering your customers?
The Future of Business Success
Since the theme of this month's newsletter seems to be predictions, I have looked into my crystal ball, and here are five strategies/characteristics that the most successful companies will employ/exhibit.
Growth vs. Cost cutting
Instead of improving margins through the continual reduction of expenses, successful organizations of the future will focus on generating dramatic top line growth through intelligent investment in the future of the organization.
Driving innovation vs. Eliminating waste
Instead of waiting until something goes wrong and then fixing it quickly as evidence of efficiency, organizations will look to raise standards and improve operations on a daily basis as they adopt a proactive mindset.
Customer retention and referrals vs. Customer satisfaction
Instead of blind acceptance that the customer is always right because they are happy, organizations will stratify their customers by understanding there are only three aspects to customer relationships - repeat business, referral business, and lack of complaint.
Hiring the best people vs. Hiring for need
Instead of hiring for specific senior positions, organizations will hire the best people and then create the right roles for them.
Maximizing impact of current ideas vs. Generating new ideas
Instead of emphasizing the development of new ideas, organizations will use formal, disciplined processes for implementing, integrating, and maximizing the impact of the ideas they already have.
Have an Idea or Topic You Would Like to Hear More About? Send it to me.
I am always looking for new ideas and topics to cover so please don't hesitate to contact me with topics and themes you would like to read more about.