All home appliances producers have big fixed costs, we all know that. We also know, that each maintenance and delays of production costs very concrete money, which are only a start of problems that will occur later: contractual penalties for delays in deliveries to chain stores or when your client will decide to buy product products of your competition instead of yours.
That’s why it’s essentially important for all parts of the production process to maintain it’s continuity. What are the biggest challenges that we should be aware of and how to prepare ourselves to those, that are occurring most often? Let us give you few insights on that.
The biggest possible challenge for all producer are delays in deliveries or soaring demand. Both are connected to the same issue: ability to react fast.
Devices produced in Asia are always delivered in bigger amounts than those produced in Europe, which isn’t good, especially in situations, where you need to act fast, such as: when your shipping has been stopped due to quality issues. There is one big problem that you will have to solve in situations like this, strictly connected to the factor of time.
Your clients need their orders now, not in a month. They can possibly wait few days, but if your quality issues can’t be solved in Europe whole cargo has to go back to Asia and be repaired there, which takes weeks or even months. Most possibly, you can’t afford this to happen.
On the contrary, if your production line is based in Europe you can react to any problems within hours or days. That’s because shipping amounts are smaller, but more often. Instead of getting one big portion at a time, you will get few smaller ones within few weeks. Even if one of the deliveries will have to be checked one more time, you will always have the other coming in only a few days.
It’s also worth to note, that even if there will be any bugs to be fixed in devices, repairing them in Europe is a matter of way shorter time than in Asia.
At Beltrade, while collaborating with our clients and partners, we always make sure, that we have a safety stock, that might be also called buffer stock. It allows us to mitigate the risk of any stockouts due to uncertainties in supply and demand.
It means, that even if you will get an extra order of a short term, we will be able to ship this very quickly from our magazines in Warsaw. Safety stock helps us also to deliver you a proper amount of devices on time, even if the previous shipment had been stopped due to quality issues, you no longer need to worry about the time of analysis.
Basically, there is one extremely important thing we always tell our clients while choosing right components to their devices — be especially picky if it comes to quality of components visible and used by the users, such as switches, displays, control panels.
The reason standing behind this is not only about preventing your devices from potential faults or being stopped at the quality check. It’s also about giving your clients additional reasons to love your product more than product of your competitors.
At Beltrade, we believe that it’s the experienced user have with your product, that is the main reason standing behind his/her buying choices — that’s why we always recommend our clients to take care of parts that will be first ones, that clients will look at or test in shop — as they will be a proof of the quality of whole product.