Tag Archive: reevaluating

Are You Developing Close Relationships with Your Customers?

May 17th, 2020

During turbulent times, relationships move faster than at any other time. Will they move in a positive direction or a negative one? That is the only question. In fact, customers will be reevaluating what they buy and when they buy it. Consumer behaviors are evolving and business buying behaviors are evolving. Are you in the loop with your customers as to what is top of mind? Listen to our conversation with an expert in creating customer loyalty on our Navigating Through Volatility webinar series on creating a Forever Transaction.

What Should We Consider and/or What Impacts Could Arise?

As a customer, I have less patience with slow response when I need it the most. Our customers are no different. On the other hand, a few suppliers stand out in my mind in making my life easier and being ahead of the curve. I will remember that as the pandemic winds down. Identify your top customers and make sure your relationships are moving rapidly in a positive direction. In fact, it is appropriate to drop low priority or unprofitable customers. Otherwise, your key customers might not gain the value they would otherwise.

Look for opportunities to provide value. Ask questions to understand your key customers’ current situation and what would help. Simply look for opportunities to help your customers be successful. If you can offer help and/or ideas, it can go a long way! Don’t worry about expanding business during your conversation. Provide value and your customers will be more successful. When your key customers are successful, you’ll be more successful as well. I’ve addressed this topic as well as your strategy, priorities, key trends, and your restart recipe for success in my eBook,  Future-Proofing Manufacturing & Supply Chain Post COVID-19 

Please share your stories, challenges, ideas and successes. Contact us and please join in our free webinar series and listen to our archives.



Manufacturing is on the Move

August 17th, 2019

 

Reshoring was at record levels in 2018! Manufacturers are starting to return as they see the total costs of offshoring combined with the rising costs in China and improved competitiveness of the U.S.

According to an Industry Week article by Harry Moser, almost 1400 companies announced the return of 145,000 jobs in the last year. This trend was starting to occur prior to the tariffs. Now, the tariffs are expediting the return. Manufacturers are also realizing they can gain a competitive edge with rapid customization close to their customer base.

Additionally, even in commodity products, companies are reevaluating how to remain competitive and diversified. Hasbro is the latest company to look at diversifying away from China. According to Industry Week, Hasbro, the largest toy maker globally, said that it planned to move from 75% to 50% production in China by the end of 2020. They are looking at Vietnam and India.

There is a transformation occurring. Executives are more concerned about relying on any one source of production (China), and are diversifying. Intel is reviewing its global supply chain.  And, there are rumblings that Apple and Amazon are working on a plan B.

What Should We Consider and/or What Impacts Could Arise?
Speed and agility are critical to thrive in today’s marketplace. Start thinking about how you can radically reduce lead times while accelerating cash flow (reducing inventory levels) and increasing profitability. It is no easy task . Yet, it is what is required to thrive in today’s Amazon-impacted world. What can you do to get ahead of this curve?

Like the big dogs from the Industry Week article, should you be thinking about diversification? Or should you be re-shoring? Or should you buck the trend and offshore while everyone else is re-shoring? There are many companies who would be in far better shape if they had taken that approach 10-20 years ago when every Board member wanted to see an increase in outsourcing. There are no perfect answers except to be thinking about these impacts on your industry, your supply chain partners and on your company so that you can take a proactive stance instead of a reactive one. What will you do to successfully navigate these waters?

Certainly, re-shoring, near-shoring and diversifying are topics related to creating a resilient supply chain. If you are interested in an assessment of your situation, contact us. You’ll find more information on these types of topics on our resilient supply chain series.