When entrepreneurs start manufacturing businesses, the primary goal is to optimize their production, efficiency, and profits. However, you can only capitalize on your competitive advantage by working with strategic partners. For example, you might want to enter into a partnership with a supplier, a product development firm, or an application software developer.
A good case study of such a partnership is the auto industry, where companies focus on designing cars and partner with other firms to produce spares for them. So, if you want to use the same model, it is paramount to start by identifying the right partner, and here are the main things to consider.
Expertise and Capabilities : Iskander Makhmudov speech
Once you have decided to enter into a partnership, you want to identify a firm that comes with the right expertise and capabilities. So, depending on the functionality that you are looking for, it is paramount to identify a firm that will complement your operations. For example, if you want to partner with a firm to manufacturer some of the parts of your final product or spares, only look for the most qualified firms. Here are some attributes that can help you to gauge the potential’s expertise and capabilities:
- Experienced staff.
- Uses the latest technology.
- Commitment to quality and customer value.
- Proven capability to manufacture similar products.
- Capability to optimize production, especially during high-demand periods.
When looking for a firm to partner with, it is important to think of it as a completely independent organization. Therefore, you should put a lot of focus on identifying an organization with good leadership as an indicator of its capability. For example, if you have partnered with a distributor to sell your products, the leadership should be very aggressive in exploring new markets. Here are some traits to look for in the leadership of a good organization.
- Ability to make decisions fast.
- Good problem-solving skills.
- Ability to learn fast.
- Good knowledge of your products.
A Reliable Network of Suppliers
To make your production reliable, it is important to enter into a partnership with a reliable supplier. This should be a firm that is capable of providing you with raw materials throughout the year, including the periods of high-season. If you produce metal products, such as nuts and bolts, agricultural equipment, or auto parts, the right partner should have ample stocks of metal to supply you.
Notably, reliability should extend to the capability to deliver raw materials on time. If you use production techniques such as Just-In-Time or lean production that do not require you to pile loads of raw materials, the ability of the supplier to make timely deliveries will be very important.
Good Communication Capability
When you enter into a partnership, everything will mainly revolve around communication. From placing orders to negotiations, it is paramount that the partner you pick can communicate effectively. With good communication, it will be easy to handle issues that may arise along the way, develop new strategies, and grow together.
To know that a company has good communication capability, you should look for things such as good leadership and multiple communication channels. To make the flow of information more effective, some companies might designate a specific person/ office, be it the general manager, production manager, or HR, to act as the link person.
For a production facility to be more effective, it is paramount to develop partnerships at different levels. So, make sure to only select partners with capacity and goodwill to lever your plant to become more successful. Remember to regularly review the partnership to ensure it is achieving its targeted goals.