Plant Efficiency and Market Understanding Is the Answer in Tough Times

person access_time   4 Min Read 27 April 2019

This is the time one must focus on re calculating cost by saving on every resource and preparing a price list based on market understanding. Instead of packing your bags filled with samples and catalogue's or making repeated calls to salesmen and dealers, this is right when you must identify the reasons for which a dealer or a retailer would like to buy from you.

In past two months, I am seeing more of desperate faces who are extremely suspicious. The desperation is growing with each passing day because the market is behaving like never before. You may come across people who will be heard saying 'I have never seen so much slump in my career' or 'never see such a bad market where no demand - no payment'. As a market person and statistician, in my 19 years of business journalism, I have a different perception and way of seeing things. Since I have seen similar situation around 4 times in previous years too, I am sure of one thing - If good times are not here, bad time will also not last'.

The present times are just not right for making desperate attempts to find dealers, get orders or run from pillar to post, instead it is time one shall look at plant efficiency, wastage control and right human allocation with appropriate mind set suiting to the section he is assigned with. In plywood industries there are so many gaps and lapses that are needed to be plugged and sealed for example;

1. Inventory of core veneers, face, raw materials are needed to be stored in tandem with order flow.

2. Raw materials used on a rotation to reduce wastage completely.

3. Right mindset among workers and supervisors who can save on every inch of veneer or every gram of resin or every minute of a machine run or every watt/ml of fuel and energy.

4. Right calculating practices to add overheads and cost.

5. Plant insight and finished goods produced followed by B grade checking and sorting formats

6. Wastage % & plant output ratio at par with best of other plants / leading industries etc.

On the other side this is the time one must focus on re calculating cost by saving on every resource and preparing a price list based on market understanding. Instead of packing your bags filled with samples and catalogue's or making repeated calls to salesmen and dealers, this is right when you must identify the reasons for which a dealer or a retailer would like to buy from you. There is absolute clarity that either one has to be a brand in an area, state or region one has to become highly competitive. Mid sized industries have tried to be none till now. If some has made some efforts with marketing or branding, they have limited themselves to some samples, ads or facebook posts or whatsApp posting. Indeed it is not at all enough. Now one has to have deeper market understanding, better planned approach and right people on every nodal points.

I strongly hope for a sharp rise in demand post 2019 because of many factors and policy decisions made by government during past 5 years. But that is certainly not going to be reaped or taken benefit of by every one. The production capacities are so much higher than expected demands that it will need more than being just manufacturer or industry person. An industrialist and successful entrepreneur must learn to have better market understanding based on facts and research with fine back up of an efficient plant. We all must wake to the new reality that is driven by organized working, formal work culture and a more than aware consumer.

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