How can your job shop can take advantage of the current supply chain bottlenecks?
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- Category: Industrial Marketing
As an industrial manufacturer you are more likely than not being affected by the ongoing supply chain disruptions caused by the COVID-19 pandemic. Back at the beginning of 2020, nations around the globe had no choice but to stop production, shutdown temporarily, and overall decrease their output. This decreased output has affected everything from common household items such as toilet paper and soap to manufacturing needs such as raw metals and materials. On top of that, ongoing climate changes and disasters have drastically weakened grown commodities (like fruits, vegetables, nuts, cotton, and rubber) and made them scarcer.
Now as we begin 2022, economies are once again fully open however worker shortages, plant closures, cargo delays, and overall low inventory have continued to make the supply chain issues worsen. The problem is larger than it seems to most, as one industry’s lack of components negatively affects every industry they service with their parts. It really boils down to this: a lot of manufacturers are unable to deliver their products within their normal lead times. The demand is certainly there… it just cannot be satisfactorily met. Although manufacturers are working hard to increase production rates and reduce supply chain bottlenecks, it will take some time before things are back to normal again. Some are also revising and expanding their supply chains to better meet the current and future demands of the market.
It is time to sound the alarm!
Is your shop struggling to fulfill your customer’s orders in a timely manner due to lack of parts, components, or materials? How can you ensure that your company will come out of this temporary disruption in a strong position to grow?
How a manufacturer captures information from the marketplace (i.e. the supply problems) and disseminates the information to decision-makers truly determines how fast and how well they can seize opportunities and gain a competitive edge over their competitors.
Since the global supply chain issues are a multifaceted problem it is hard to see exactly what you should do while the crisis runs its course. Most are scrambling to cut back on everything across the board, but that may be very counterproductive in the long run. You may need to cut back on how much you can produce but, honestly, now is the best time to focus on your marketing and messaging. Why? Let’s explore a few reasons.
1.) How are your current customers doing? You need to communicate with your current customers. Make sure that they are aware of any potential backlogs and/or longer lead times on their orders. They are your current bread and butter, you need to be sure they are happy and well taken care of.
2.) It is time to diversify! Review your target markets and look into other industries that you can serve better. Now is a great time to pinpoint with more precision the kinds of companies or customers that you would like to work with that you do not already work with. As you know, industrial businesses have longer purchase-time frames start getting your company in front of them now.
3.) Are there opportunities in your existing supply chain that you can better serve? Some manufacturers have better access to certain materials or supplies than others, is your company one? Use the time you have now to open new opportunities with customers that are having issues getting their products delivered through their existing suppliers. You can help new customers diversify their vendor base to meet their own supply needs.
The supply chain issues are a bit of a short-term annoyance most of us are facing: quite a few industries, countries, and households. However, it can also be a huge opportunity for your own business to position yourself not only as an expert, not only as a great manufacturer, but as the “go-to” company in your field during a crisis. Utilize your position in your industry with a bit of creative marketing as a sort of insurance policy against a possible slow business cycle due to temporary supply issues. Ramp up your marketing now… you won’t regret it!
All industrial – all the time!
With over 30 years of experience, The Rico Group specializes in helping industrial manufacturers and job shops grow their business and diversify their customer base. We know how engineers think and what they are looking for. We know your processes, equipment, and materials. We also know that you have very little time to take away from your production and getting your customer’s orders delivered.
Grow your business with better marketing with The Rico Group.