Discover a Radical Departure From What the Market Is Currently Quoting for
With the worldwide market for industrial and consumer goods as competitive as ever, companies and OEMs are embracing one of two strategies in the arms race for market share:
- Cut production costs to compete on price.
- Drive innovation to compete on long-term value.
In either case, driving out incremental costs in the supply chain is crucial for passing savings along to customers or investing in future technologies and R&D.
Still, there is a very small percentage of manufacturers that choose to incorporate yet a third strategy, which can be applied to both of these other two, more traditional paradigms:
Develop breakthrough technologies which provide substantial – not incremental – cost reduction or revenue gains from innovation.
This strategy often results in better technology, but may introduce trickier manufacturing challenges in the process. However, the more challenging the request, the greater the return in the long run – and we are talking orders of magnitude better.
A CALCULATED RISK
For those few companies out there daring enough to attempt delivering value via game-changing innovation and substantial cost reduction vs. incremental cost reduction, here are two tactical methods to drive results:
Discover a radical approach that causes a massive cost reduction – When 3% isn’t good enough, and 50% is a goal management is willing to invest in, you have no choice but to apply a radically different approach to deliver on this lofty business objective. This means re-engineering processes, materials and part designs to achieve vastly more efficient ways of producing parts.
While this might make a process seem daunting, if not impossible, with the right manufacturing partner, the results may be precisely what are needed to slash costs and capture major market share; we’ve seen it firsthand.
Help customers launch breakthrough products and technologies –There’s no substitute for true, share-stealing innovation, that which can only be accomplished through a meaningful investment in R&D. So, a company has to decide:
- Does it want to dabble in the competitive price-squeezing game, where only the leanest companies survive (leaving little money left for innovation)?
- Or, does it want to invest in innovation, take on some calculated risk, but have the confidence in its team to focus on pursuing bigger, long-term wins?
Since it’s rare for a company to execute well on both fronts, for those choosing to be more selective in their work, perform R&D and take on a bit more risk, the long-term results of developing game-changing innovation will ultimately end up being worth the time and money invested. With the newfound ability to enter new markets and/or steal market share, they will get the competitive edge they’re gunning for, now and for years down the road.
A COLLABORATIVE APPROACH
At Metro Mold & Design, we focus on tackling “impossible” challenges that others can’t or don’t want to do. It requires an investment and application of talent from both the OEM and manufacturer. Once we’re able to understand the very essence of a customer’s business goals, we’re able to collectively put our heads together to begin attacking each project with tenacity.
After all, the only strategy that works is the one that meets the objectives of our customers. Applying cost reduction or breakthrough innovation is only effective when it doesn’t compromise the end result or functionality of the part and product being manufactured. In our experience, our customers who have bet on American ingenuity, with a creative, tenacious and disciplined manufacturing partner backing them up, have rarely been disappointed.