Page 14 - CEN 13 Apr.indd

12
APRIL 2013
According to a list compiled by Standard & Poor, a
new company making the Top 500 list in the 1920s
or 30s, could have expected to remain on that list for
an average of 65 years. By 1998, that had dwindled to a
mere ten years, showing how quickly and easily companies
can become outdated, irrelevant and obsolete.
In the past decade, every successful business has undergone
radical change, each one has had to experience some type
of forward movement, whether a small enterprise or a
global OEM.
Many issues influence and mould the inner working
of companies: labour costs, skills availability, currency
volatility, business confidence, uncertainty, information
technology and globalisation drives. Companies that
have the ability to respond with flexibility and agility to
the accelerated pace of change within an increasingly
transforming economic environment, will outpace
those that are less flexible and adaptable.
Where in the past a new product would set a company
above its competitors, intellectual property (IP) is no longer
sacrosanct with cloning and duplicating widespread and
easily available through resources such as the internet
or, with slightly more difficultly, industrial espionage.
Having said this, according to Barloworld Logistics’
‘Supplychain foresight 2013’ many companies (80%
of respondents) see the introduction of new products
and services as a means of prolonging the longevity of
their organisations.
An increasing focus on after-sales support and customer
satisfaction, with stronger focus on the dissemination of
intelligence, improved communication and collaboration
acrossthevaluechain,hasseenorganisationsimplementing
intensive Customer Relationship Management (CRM)
policies. This trend became evident during the global
meltdown in 2008/2009, where equipment sales stalled,
stuttered and halted and the only means of retaining
customer bases was to ensure that they were ‘looked
after’; their machines serviced (and often reconditioned)
and relationships strengthened – with the eventual upturn
in mind. Customers would then hopefully buy their new
equipment from those attentive companies that had seen
them through the worst.
‘In this context, improving service levels to customers covers
everything from increasing visibility across the supply
chain to improving systems and processes so that the right
product in the right quantity and condition is delivered to the
right customer in the right time, at the right place and right
price.’: ‘Supplychain foresight 2013’.
OEMs today emphasise how they differentiate themselves
through their customer service, by tailoring their offerings
and moving away from the ‘one-size-fits-all’ principle.
They are listening more closely to their customers, it
would seem, and ensuring that they are not over-selling,
but rather fulfilling a requirement, which in turn, has
customers coming back for more.
Time to reflect...
CEN turns ten this year, which got me to thinking how the industry has changed during this period. What
transformations within manufacturing and the economy, what types of innovations and what challenges
has industry faced to keep their sights on moving forward? By Kim Kemp.
“At the risk of sounding repetitive or clichéd: it’s
always got to be about the customer. We need to
be in constant engagement with our customers. You
can’t think it is ok to have a discussion once a year;
it is not good enough. Open lines of communication
are important.”
Mark Erasmus, Managing Director – Volvo Trucks Southern Africa.
Productivity
Over the past few decades, manufacturing has evolved
from a more labour-intensive set of mechanical
processes to a more sophisticated set of information-
technology-based methodology.
Through innovation and smart partnering, productivity
has been ramped up to improve that most important
consideration of any business, the bottom line.
Productivity has driven the search for faster, more efficient
methods in which to produce a better product; whether
‘better’ be in the quality, the total units produced, or the
market value of that product – at the best price.
“The foundation of our business lies in providing
products and services that directly improve our
customer’s productivity and profitability. Over
the last few years, our customer’s growing
requirements included a larger range of heavy
duty machines and this lead to the introduction
of the Sandvik range of crushing and screening
equipment, to supplement our
already extensive range.”
Graham Kleinhans, Director Sales – Pilot Crushtec.
Materials handling, which includes procurement,
inventory, shop fabrication and field servicing, requires
special attention for cost reduction. The use of new
equipment and innovative methods has made possible
opinion piece