Manufacturing is a tough business. Juggling suppliers, raw materials, employee issues and equipment needs is only a small part of what it takes to run a successful manufacturing operation. When you’re focused on the daily pressures of running your operations, mistakes can happen.
Nonwoven manufacturers and converting companies must be on the lookout for common manufacturing mistakes before they occur.
- Failing to understand the real cost of business. Dropping prices to secure business is a common manufacturing mistake. But if you’re not taking into account all the job costs associated with a project, your profitability will inevitably decrease. Include all labor costs, not only your actual employee hourly rate but also employee overhead costs like employer-paid benefits. Be sure that all overhead costs for running your manufacturing equipment and your administrative costs are also included.
- Underestimating how important your customers are. Just because you aren’t hearing negative reports from your customers doesn’t mean you shouldn’t reach out to them. Cultivate all your customer relationships. Understand what their pain points are and help them understand how your business can help them solve those challenges. Regular communication with your customers, big and small, can also help you forecast your own business prospects as you understand what they need from you as a supplier.
- Undervaluing your employees. One of the greatest manufacturing challenges facing American manufacturers today is the lack of skilled employees. Invest in and develop your employees to build a strong company culture of employee appreciation and, thereby, reduce turnover. Employees who feel valued and appreciated will often remain loyal to your company for the long-term.
The best way to solve challenges as they occur and prevent mistakes from happening is to work together with your manufacturing partners and suppliers. Know your costs, talk to your customers and cultivate your employees. How do you solve your manufacturing challenges?
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