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Monday
Feb022009

Don't Take Your Company Success for Granted

Over the last 5 years, we have worked with companies of all sizes and industries. It is with pleasure that most, if not all, of our clients are holding their own during this very challenging period. The key to their success; they made the time and effort when things were good to become faster in fulfillment and more in control of their demand management processes.


One of our clients, a California based manufacturer of tools implemented lean in early 2008 with our help. The operations manager recently sent us a note stating: “Business has really dropped off the last couple of months. I know we are not alone with this challenge. We are fortunate we did our improvement activities last year or this would have been much worse.” A manufacturer of precision components completed a project that combined our DemandCaster process with Lean at the end of 2008. They were able to gain control of their planning process and reduce their working capital exposure in advance of the downturn.


We often sit back and accept the status quo when things are good confident that our cash flow and profits will always be there. I remember talking to a manufacturer of construction supplies a little over a year ago about their low inventory turns. Their response, "Our margin's are high enough to compensate for the inventory." I wonder how they are feeling today with the double whammy of the housing bubble and general economy? Despite all the challenges we face in today's economy it is the best time to make improvements to prepare for the inevitable swing back to growth. The question is will you see it before it comes? DemandCaster may help.

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