Last Sunday I launched the Blog-post about an example for a price calculation for a big customer as a sovereign decision making factor and pointed to the potential hidden risks that could appear when signing a long-term contract. These risks were related to your sub-suppliers and potential bottleneck situations. We never know what the future might bring for those who are “in” with us for a longer run.
But the future also might be light and bright, especially for your customer who now asks for a larger quantity per month to increase the excepted annual profit! Are you able to deliver? But more important: are your sub-suppliers able to deliver? What about your overall capacities?
Okay, this was the scenario “B” I described for you:
B) The second (risky) scenario might be that your customer is suddenly so successful with the product you produce and deliver that they ask for more pieces per year than you originally calculated, offered and already deliver. Their new market shares are challenging you now! Are you able to produce this extra quantity in the time the customer asks you for? Think of the capacity you need for the extra production! (New consequences!) This new challenge doesn´t only concern your machines and workers, but will also challenge your suppliers. The schedules will be on fire! And your decision making will burn as well –
As much as scenario B) might sound positive for you, it might include negative consequences once it becomes a problem. Be ready for strong argumentations when you have to re-negotiate, internally and externally. Sit down for new (price) calculations to keep up with your linked decisions.
This second scenario also will show some positive side-effects: you can either extend the work-hours and implement another shift per week or decide for a new weekend-shift only (if trade union allows to). Therefore you might hire new employees or check who is willing to work over-time. This extra profit (unexpected) allows to offer an extra bonus´. All this calls for a strong decider who is able to offer great decision results for all involved people, internally and externally.
BE A DECISION MAKER. BECOME OUTSTANDING.
rita jaskolla – Leadership Architect –