Manufacturing businesses are notoriously hard to scale. Regardless of the type of merchandise produced, figuring out how to take a manufacturing business to the next level is a serious challenge. All business owners want to see their company grow and succeed. Most businesses face barriers to sustaining growth and expansion. Scaling business operations is not easy; scaling a manufacturing business is even more difficult.
Here are six tips to help you scale manufacturing business operations.
1. Keep processes simple
Process is the key to sustainable, predictable growth. Every successful business is centered around a core system of processes. Achieving scale requires repeatable and predictable processes and systems. Successful business leaders learn how to simplify things. They know how to take complexity and make it less complex. Complexity take time; it slows businesses down and inhibits growth. CEOs of growing companies are aware of the impacts of growing complexity and take action to continuously simplify the operations and strategy of the company.
2. Focus on your customers
Successful companies in the manufacturing industry are increasingly seeking new ways to understand and connect with their end-consumers. Customer-centric business strategies are being established across many manufacturing companies, through the use of both digital and physical services. Customer centricity is more than offering great customer service; it means offering a great experience from the awareness stage through the post-purchase process. It’s a strategy that’s based on putting your customer first, at the core of your business.
3. Invest in employees
Companies that invest in their employees find that their employees work harder. Investing in your employees helps you grow because you will attract and retain top talent. Employees that feel valued will be loyal, share the vision for the business and dig deep to help your business grow.
4. Stay tuned-in
As your business grows, owners tend to step back, delegate and let other, better-suited people handle the work. But just because the work is being accomplished, doesn’t mean you shouldn’t stay involved. When you stay tuned-in you will better anticipate the need for change and be ready to adapt when necessary.
5. Invest in equipment
Properly scaling a manufacturing business means investing in high-quality equipment such as robots, machinery and automation. While this can be expensive, it is certainly a wise investment. The right equipment will allow you to increase production when needed. It will also help you outperform your competition. If you want to successfully scale business operations, you need to invest in new manufacturing tools and technologies.
6. Use data to drive growth
The key to sustainable growth is data. Manufacturers that take advantage of data analytics can reduce process flaws, saving time and money. Analytics refers to the application of statistics and other mathematical tools to assess and improve processes. Operations managers need to learn how to apply historical process data, identify patterns and relationships among discrete process steps and inputs, and identify the factors that prove to have the greatest effect on production.
Scaling your business operations in a manufacturing environment can be challenging. Use the strategies for growth listed above to achieve sustainable growth in your company.
Marsh & McLennan Agency (MMA) and its local partner agencies are dedicated to addressing the needs of manufacturing companies. We offer the industry expertise needed to tailor a risk management program that produces meaningful solutions for your company. Contact us here to learn more…