It’s BIGGER Than Washington!!!!

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It’s BIGGER Than Washington!!!!

by Mike on Wednesday, October 14, 2009 12:00 PM

Face it! As a manufacturing business, you really only have two choices. You can stick your head in the sand and hope the business/economy will come back (or Washington will save you)…or you can go out and make something happen now.

Today’s reality is very simple, there are two givens: Quality is a given, you either have it or you’re gone, and your customers will set the price based on their perceived value not yours!

With that understanding, how do you compete? First forget about being competitive! Being competitive is a waste of time and effort! The single biggest problem with being competitive is that customers or potential customers still can choose not to do business with you… because you’re competitive with the people they already are doing business with, why would they change? Would you?

Dominance is the KEY!!!!

Over the past twenty years every business that we have helped reduce lead time (delivery) to their customers has seen major increases in market share. People do not want to wait, they want it NOW (with high quality and at a great price).

The one approach doomed to failure every time is to throw Inventory at the problem. More inventory is not a cost effective approach. The biggest problem with having your cash tied up in inventory is that it’s never what the customer wants now.

Attacking the lead time is the only viable long term solution. If your lead times are months, weeks and days you must have inventory to cover months, weeks and days. How much inventory do you need if your lead times are hours or days?

We helped a business reduce manufacturing lead time from 16 weeks to 48 hours. The result was a market share gain of 35% and a reduction in finished goods and work in process of over $10,000,000.00!

In another business we helped them reduce their quote response time from two weeks to 45 minutes. This resulted in them booking more business in two weeks than they had in the prior quarter.

In yet another business we helped them reduce manufacturing lead time from 4 weeks to 24 hours. This resulted in them growing their business from $6,500,000.00 to over $28,000,000.00 in 18 months.

Lead time reduction is the key to DOMINANCE!!!!

I am not sure if we can help you get similar results, but what if we can? Give me a call, 708-220-7101,

let’s talk about it.

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Mike

(“The Professional Provoker”) is the Founder and President of Empowered Performance, LLC a worldwide management education and consulting firm. Michael has extensive international experience working with companies of varied sizes and industries helping them implement strategies to attain World-Class levels of performance. Michael has developed expertise in “Enterprise Excellence”, Enterprise Resource Planning and Supply Chain Management (ERP/SCM), Lean (Toyota Production System), Team Building and Problem Solving, Six Sigma and Reengineering Business Processes. He is considered an expert in helping companies develop and implement Strategic Business Units and fast response customer service production units.