Many of the small and medium-sized manufacturing companies that we work with here at SME Software face a similar dilemma: how to compete with larger manufacturing entities that enjoy a number of distinct advantages. In this article, we discuss the reasons why small companies can sometimes face a disadvantage in the market, and then we will discuss the solution that our software products can offer.
Why do larger manufacturing operations have an advantage?
- Reputation. Larger companies tend to be more established in the market, which offers advantages such as increased brand recognition and a higher level of customer trust.
- Economy of Scale. It’s no secret that buying in bulk is more cost effective — and small manufacturing businesses are definitely at a disadvantage when it comes to purchasing materials and equipment at a cost-effective price.
- Resources. Cheap solutions can sometimes be very expensive — and larger operations tend to have the resources needed in order to invest in quality. This may mean paying top-dollar for top-talent, buying the best technology, or fixing a problem before it ever becomes a problem. Making these choices tends to be a lot tougher for smaller businesses, as they oftentimes have fewer resources to spend on such matters.
What can small manufacturing operations do to keep up?
- Care for your Connections. In the last section we talked about reputation. It is certainly true that larger operations tend to have a wider array of connections, as well as more funds to invest in expenses such as advertising. However, you, as a smaller operation, have the advantage of personability. It is within your reach to make each and every customer feel like they are special to your company. Relationship building, communication, and on-time delivery are all important factors in the respect.
- Manage Resources Wisely. Smaller operations have less resources to invest: which is why they must manage them carefully. An ERP and/or MRP software system can help you do just that. Visit SMe Software online today to learn more.
