Within nearly all manufacturing environments there exists a complex relationship between sales/marketing and operations/production.

Because of this complexity, salespeople are under constant pressure to win deals that have sufficient profit margins. Operations people, on the other hand, are under constant pressure to reduce costs and be efficient so that the product offerings will remain competitive.  When you take in to account global competition it seems that the stakes keep getting higher and higher.

The discovery and acknowledgment of these challenges is nothing new, nor do they require very much insight to notice. Anyone who has been around a plant that produces complex products will quickly identify with these obvious challenges. What is not so obvious is how to build processes and a framework that consistently delivers tangible continuous improvement, increased customer loyalty, profitable margins and faster sales cycles.

The difficulty that many organizations face is that they have people in key roles that do not possess the knowledge or experience to understand the plethora of cause and effect throughout the entire manufacturing environment.  For example, if a marketing expert is responsible for creating lead generation at a trade show without some appreciation for, and understanding of how potential orders will impact the master schedule, inventory, labor resources, etc., then the campaign may ultimately create unintended harm.  Naturally, the responsibility of marketing is to generate leads and ultimately sales. However, if the company has a strong reputation for on time delivery, it is counter-intuitive to turn down orders. Yet this is what must be done if the orders do not fit the production capabilities of the plant.

In this example, on time delivery may be the only competitive advantage that can be offered. Without it, the overall offer could be relegated to one of a commodity which would lead to price pressure and reduced margins. Balancing the need for new orders and the need for the  right orders must be well understood by the leaders in the organization.

Conversely, if an operations expert has a deep understanding of continuous improvement, supply chain, inventory forecasting, etc., but does not have a thorough understanding of how sales & marketing is interfacing with prospects and customers, there could be an overemphasis on improving effectiveness in areas that provide nothing to the bottom line. 

Conclusion. Before you spend money on new or upgraded software, you may want to consider what improvements can be made to your organization’s “thoughtware”.