Get a head start on the competition in 2010
As we embark on 2010 and leave 2009 behind (thank goodness), hope springs eternal that we have gotten over the worst of it. In speaking to and reading about small and mid sized businesses there still is a lot of uncertainty, a lot concern as to whether we actually have come through the roughest times.
On the other hand there are signs of life. The automotive industry’s “Plan” is starting to shape up, with announcements of what is being made and where starting to trickle out. The green industry is still growing and should continue to do so for years to come. Made in America or North America mentality should stem the tide of manufacturing being shipped else where. All these signs are promising.
In many of the companies we talk to there is a lot of quoting going on, activity is rising, granted maybe not at the pace we would all like to see just yet but it is definitely getting better. Lets face it if you are still in business in the manufacturing sector that is an accomplishment in itself, but what are you going to do for your next trick?
Activity will pick up this year slowly or sharply either way it is going to get better. Saying that you must ask yourself are you doing everything you can to prepare for things when the business comes back?
Down times are a perfect opportunity to improve your communication, efficiency and organization as a whole. While the sales staff is out there pounding the pavement looking for work, the administrative and operational people should fill in excess time by streamlining and updating business processes.
The thought here is that while all your competitors or at least those that are left are waiting to see the evidence of the resurgent economy, you should be preparing for it. Waiting until you are at your busiest to install an integrated business solution or improve your business process taxes over worked employees even more. On the other hand if you improve the flow of information and general business process, with the use of something like ERP, while you are slow then when it gets busy you can focus solely on producing and meeting customers demands.
All businesses have been through a process to trim excess or cutback. The question remains though have these business done anything to improve themselves during this time. In many cases people have been let go or layed off, those that remain have taken more responsibility. Helps the bottom line but have you really improved your business in the eyes of the customer? Are you providing a better experience for your customer? On time deliveries, timely answers in the customer service area. Can your people get the answers they need quickly to make the daily decision they need to. How much inventory of product x do you have. If someone still have to go out a physically look, your business is not as efficient as it could be. There are hundreds of examples from double entry of data due to fractured systems to did we make any money on that job.
When times are good and the margins are there the details aren’t as important as long as at the end of the year the number looks good, but when times are tight and the numbers start to get ugly, there is no better tool on the plant than ERP system with the data you need to make informed decisions.
