Improved external communications isn't just
smart - it's a tool for success

In the face of mounting competitive pressures both regionally and globally, manufacturers understand the need to speed up product rollouts while keeping a tight rein on costs. To achieve this balancing act, many manufacturers have focused on removing internal silos so business units can work together to reach common goals.

The approaches manufacturers have taken to enhance internal business processes vary from Enterprise Resource Planning (ERP) and Six Sigma quality improvement initiatives, to extending lean manufacturing beyond the shop floor to other areas of the business.

Yet, despite these efforts, it is becoming clear that manufacturers must move beyond the internal alignment of people and organizational structures to achieve a sustainable competitive advantage. Simply stated, manufacturers must also find ways to communicate with key external stakeholders.

Looking beyond the company's walls

According to research conducted by the Economist Intelligence Unit, high quality relationships with outside parties will become more important to companies as a source of long-term competitive advantage. That said, improving communication with suppliers, customers and other partners along the distribution channel is not without challenges.

Consider the struggles manufacturers face in implementing customer-mandated technology standards. Aside from the costs, companies must also determine how to deal with non-compliant suppliers. They must ensure company data remains secure. They must overcome the language and cultural barriers of communicating with global teams. And they must adopt a new internal culture that promotes increased collaboration.

Given these challenges, it's no wonder manufacturers are hesitant to explore other communication options. Yet, evidence continues to mount that the benefits of improved communication vastly outweigh its costs.

A look at the benefits

Think of it this way. By communicating more effectively with suppliers, manufacturers can often obtain preferred pricing on materials, while streamlining sourcing. By improving relationships with customers, manufacturers can keep pace with industry trends to ensure product development remains responsive to consumer demand. And by communicating with partners in different time zones, manufacturers can adopt "follow the sun" methodologies to accelerate speed to market.

This external communication can also help companies wring further productivity out of their internal processes. For instance, with the right solution, manufacturers can more readily engage in simultaneous design and engineering, improve supplier and customer negotiations and position themselves for long-term growth.

How can you achieve these goals? Tune in to the next instalment in this series from Allstream, where we discuss some key strategies for communicating outside the business.

To learn more...

To learn more about this topic, or share comments or questions, contact David Lukey at Allstream at david.lukey@mtsallstream.com.