A business’ scalability is crucial to its success. Leaders in business ensure their business models offer the potential for economic growth and that the internal systems of their companies can adapt to meet future increases. However, it is equally important to plan for growth in a business’ outside relationships. Growth must be supported externally as well as internally.
In manufacturing, focusing only on internal scalability can actually limit the growth of a company. If a manufacturer adjusts their internal infrastructure to meet fluctuating capacity needs, they could end up absorbing unnecessary costs. Rather than internalizing all of these pressures, a manufacturer could benefit by leveraging their relationships with an outside partner to eliminate these costs while accommodating growth.
There are many ways manufacturers can use their strategic partnerships to address the issues of changing capacity needs.
For example, many manufacturers must manage different seasons throughout the year. Rather than investing in additional equipment that would be poorly utilized during slower production times (adding to unnecessary costs), manufacturers can work with partners who have the resources to handle high capacity demands and who can scale up and down as needs change.
Additionally, when strategic partners handle changing capacity needs, manufacturers avoid the costs of operating at higher overtime rates and the inefficiencies of dealing with temporary or inexperienced employees who prove less capable or productive.
This, of course, must all begin with a conversation between the manufacturer and the partner. Strong leaders in manufacturing have the foresight to plan for changing capacity needs and the initiative to communicate these needs to their partners. Strong partnerships exist between partners who can accommodate a manufacturer’s changing growth needs and manufacturers who can determine when and how to use resources and services to their best advantage.
The next new partnership meeting should be centered on scalability. Talk to current vendors and restructure existing partnerships to account for changing capacity needs. Take the lead and build strong relationships with reliable partners who are prepared to grow with you.