The new status quo
Manufacturers face changing demands from customers and distributors; flexibility is essential in order to keep up with those demands
By Dan Kleiman -- Industrial Distribution, 4/1/2007
In the manufacturing industry today, technology trends and business communications change almost daily.
For example, not long ago the big trend was to offer customers extra services labeled as “added-value.” Of course, to be competitive in the marketplace now, these services are considered status quo.
With improved technological advancements being launched continuously, manufacturers are faced with an array of options when it comes to bettering their business on all fronts—from sales, production and customer service to the essential internal and external communication necessary to build strong relationships with customers and the community.
When deciphering what steps a manufacturer should take to enhance their overall capabilities, it is vital to offer flexibility to customers and distributors in order to complement their needs.
It is a running line within our hallways and cubicles that if our customers preferred to deploy messenger pigeons as a way of communicating, then we'd build the most efficient coop possible.
As 2007 progresses, a new challenge for manufacturers will be the ability to accommodate distributors and end users by being elastic. We must position ourselves to conduct business in a multitude of ways and adapt to customers' preferences.
For six decades, the overriding ideal that has shaped our company has been listening and responding to the needs of the customer. We focus on fulfilling their wishes while keeping an eye on the economic realities of these demands.
With this in mind, we're taking some new steps that other manufacturers might find helpful:
n Add more players to the field—While some manufacturers have decided to decrease the amount of reps in the field, LA-CO/Markal has been investing more time and resources in its external sales force. During the past four years, we have added personnel in sales and marketing to improve the information we provide our customers and to offer solutions to the problems they encounter in their everyday work.
n Production and operations improvements—We have made multi-million dollar investments in our production and operations to reduce our costs and introduce new products. In an inflationary environment, we have been able to lessen the cost impact on our customers through improved processes and automation.
n Customer service—Getting the order right the first time is imperative to our distributors. We continue to work towards improving our on-time shipping performance and lowering our error rate. In 2006, our order correctness approached 100 percent.
n Communication is key—With more distributors than ever using the Web as their main communication and resource hub, we are committed to expanding and upgrading our Web site.
We also continue to participate in industry trade shows and perform product demonstrations to current and potential customers. The trade show environment, for example, often forges relationships and sparks direct customer feedback on product, business and distribution needs, which in turn can guide new product developments.
We manufacturers cannot forget the value of personal contact to our business.
| Author Information |
| Dan Kleiman is CEO of LA-CO/Markal, an Elk Grove Village, Ill., manufacturer of products used in the plumbing, HVAC, industrial manufacturing, agricultural, lumber and welding industries. www.laco.com |














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