Market challenges in product manufacturing
Running a competitive product business with a focus on its core competency also requires an understanding of the business challenges and the way contract manufacturing services can be used effectively to manage them. Globalisation, pace, technology, competition and the capital markets have all had a big impact on business today causing following several challenges:
Shifting business partnership structures: Firms have altered into a diversified entity that collaborates, co-creates and competes in a network of other firms. They are forming new relationships, enhancing their supply chains, increasing organisational responsiveness and focusing on bottom line results. Ultimately, those who facilitate partnerships, such as relationships with their manufacturing provider or contractor, will succeed.
Faster time to market: The key to quicker time to market for a product business is the creation of multi-level networks with a perspective to reducing production lead-time, manufacturing lead-time and customer lead-time. These networks need to be established through partnerships with manufacturers, contractors or suppliers. They must meet all customer satisfaction requirements and be flexible through a solid business model enabled by manufacturing and distribution convergence.
Customer satisfaction: Customer relationship management, customer control, customization, customer-centric thinking and particularly customer value can describe business focus. This requires businesses to discard themselves of self-interest and focus on the expectations, perceptions and needs of those who purchase and use their products. What happens when thoughts, wants, and needs of customers drive innovations and flow of goods from raw materials suppliers to brands, retailers or web shops and ultimately back to those customers? You have customer satisfaction. It requests a big deal of effort and intense cooperation.
Create value for your customers
Big corporations dominate the market with their brands and mass produced products trying to consistently prise out new needs of people just to appease them again with their new products. The financial expenses of those large players for Marketing in many cases continuously increase – expenditure for brand development, brand management, merchandising and sales promotions. This Marketing trend leads to a consisting escalation between competitors. Without receiving more attention, companies are forced to spend more in order to keep up with their competitors and not to loose market share. This escalation in Marketing results in an everlasting higher consumption of resources. A lot of resources are uneffectively wasted. Consumers are paying the price for this when buying their products as well as for the corporation‘s high admin costs. But what people need are products that better fulfil their existing needs. Are their mass produced products really healthy or ecological sustainable?
Well-being, health, quality of life and happiness. These will be the important topics of the future. Businesses will be well adviced to incorporate these values in their business models. Individual tailored solutions with more niches may be the result of that. The reconciliation with nature will be the topic of our generation. And this can’t be achieved with the ‚old‘ values of the large corporation economy. The rethinking will have an impact on the behaviour of consumers. That’s why ecological and social topics are getting increasingly relevant for businesses. Who doesn’t revises his opinion will be left out to dry. There is a trend to more ecological products, less plastics, individual needs, less pesticides, higher quality, less middle men, less ressource consumption and flexible purchasing. However, the modification of an economy not only implies risks but also carries opportunities for businesses and entrepreneurs.
We want to help you find cooperative manufacturers to get your products produced that bring value to your customers – a manufacturer whose production processes and working conditions are transparent, sustainable and exemplary.
Make manufacturing outsourcing a core competency so that it truly is a solution for the market challenges and then contract manufacturing will be an opportunity. Also discussed next…