What’s a manufacturer to do when the economic times turn tough? The talk on the street is that you’ve got to cut here and there, while also going after business in crevasses you’ve never looked. Well, it’s true that in periods of recession a little belt-tightening can be in order, but efficient operation should be the modus operandi of every business even in times of growth. No, when times get tough, the tough get smart-they look beyond the tactical and out into the strategic.
Depending upon the size and product of the operation, in manufacturing strategic thinking often requires a long-range planning and shop floor production execution that usually exceeds the capabilities of most basic data processing software like Excel and Peachtree. Enterprise resource Industrial Technology Careers planning software systems (ERP) are designed to create efficiencies, and enrich existing ones, so much so that significant improvements in the bottom-line are realized. At the same time, customer relationships are strengthened for long term retention by the manufacturer.
In short, getting through a recession is more than simply finding new customers in a time and place where they are in short supply; it’s also a matter of keeping the ones you already have through better service and value. A robust ERP system already knows this, and customer relationship management (CRM) is a central function of everything it does. In a customer-centered approach, CRM is meant to bring priority to each customer’s wants and needs, and to drive the ERP system to satisfy those needs on-time, with value, and for maximum profitability.
Do this through the utilization of traditional needs-based analyses. A centralized ERP system that coalesces a variety of information about each customer will show not only what they are ordering, but what they should be ordering and aren’t. Selling more to existing customers is a golden opportunity in an economic Learn About Tech Industry downturn, and should be facilitated through ERP data. This is a pro-active approach to selling: You figure out what your customers need in advance of the pitch, and are able to, perhaps, craft an appealing package of product and price to remain competitive with other possible vendors of the same piece.
Being smarter in a recession also means completely understanding that it’s much easier to retain a loyal customer than to regain a loyal customer once they are lost. Poor quality, broken promises of delivery dates, materials and inventory confusion-even in slight missteps can mean the loss of trust, and with it business. Use ERP in a recession to ensure you’re not missing something when it comes to customers. This will mean using your software system to stay ahead of the capacity and quality curve. In other words, when business is slow there should be ample time to focus on improving output and value for every customer your have.
While certainly dreaded, recessions don’t last forever. They’re natural products of typical business cycles, and in many ways are cleansing moments for the economy in order to shake out chaff and inefficiency. Be there on the upturn; improve your customer relations through ERP when things are down.
