OEM and supply reliability; difficult to combine


OEM and supply reliability; difficult to combine

The supply reliability of OEM-businesses is often under pressure. This is obvious for a number of reasons. Firstly we learn that an OEM often attracts and finds its customers within a specific sector. As such, fluctuations apply for all customers at the same time, in terms of market or season. This affects the supply reliability.

And there’s more: an OEM is tied to an extensive fixed machine park by definition. When the demand increases, such a company will soon reach its limits. Initially, expanding shift times may help a little, but soon limits are reached. And that is the positive scenario…

Practice shows that things can be different. Whoever depends on one supplier, being an OEM-business, is automatically dependent on its existing business situation. A fire, a strike or, for instance, bankruptcy, has immediate consequences for continuity in terms of delivery. This may sound like a worst case scenario, but many of our buyers have experienced similar situations and are aware that this could be a possible reality. The most common complaint of buyers in relation to OEM-businesses is not about the price nor the quality, but indeed the supply reliability. Menzing is aware of that. Even more: it owes an important share of its success to this.

For many of Menzing’s relations, the machine we’re discussing is not the core business. Menzing’s relations often need a machine to market their core product. OEM delivers the means to generate revenue. Particularly in these instances supply reliability is essential. If machines cannot be delivered, the revenue of consumer goods will not be achieved.

Think about this in terms of your own situation. If supply reliability is more important than the risk of loss on sales of machines, it is even more essential to get to know Menzing.

After all Menzing thinks differently. Supply reliability for them has a leading role and they always seek the right partners within their network. Several for each module. And that works.

Mark Slotman |
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