Manufacturing Magazine April 2018 | Page 14

MANUFACTURING STRATEGIES

products that we sell you as a service .’
“ And the advanced level is when you start doing risk and revenue sharing . That ’ s when you ’ re really getting under the skin and deep into your customer , because then you ’ re saying , ‘ okay , what problem are you trying to solve ?’ The customers say , ‘ well , we need to increase this or reduce that .’”
“‘ Okay , we will help you reduce your costs , for example , by 10 %, but if we do that with our products , we want 20 % of those savings .’ So , think about it , if you were the customer – you ’ re getting the supplier coming up and saying , ‘ I don ’ t want you to pay me for any of this equipment or service that I ’ m going to give you . You ’ ll only pay me if it saves you the money .’
“ So , it ’ s a win-win situation . As a customer , I don ’ t care , I ’ m covered by the contract . And as a manufacturer , it ’ s my incentive to ensure that the equipment I put in place , the products and the services I use , do actually meet the customer ’ s requirements .”
The Welshman recognises though , that many companies , regardless of industry or specialism , have suffered at the hands of the major internet players eating into their customer base and profits . Moving with the times is paramount for any company to ensure a secure future , and that is doubly true in the manufacturing sector .
“ When we think about manufacturing , you have to try and get some differentiation in the market ,” says Bourne . “ You can ’ t just be a warehouse on the high street and think ‘ I can beat anybody on the internet ’, it ’ s just not realistic .
“ So , the world is changing . If you look at property , purely internetbased estate agents like Purple Bricks are coming on the market and some have been on the market a while now . In the automotive industry , you have Drive Now .
“ It ’ s that pay-as-you-go service mentality that people are adopting now . Many manufacturers are reacting to this and embracing it and using it to their advantage , but some aren ’ t . It is in that acceptance and that mentality that they have to do this to survive .”
14 April 2018