Custom Fabricators, Inc. Case Study

1202 Words May 5th, 2008 5 Pages
Custom Fabricators, Inc. Case Study
With the constant change in demand, businesses must consistently review various strategies, customer needs and core competencies to determine all are in align with the company purpose and mission. Manufacturing companies are endeavoring to be order winners in the various markets today. They must differentiate between the competition and core competencies in a very challenging economy.
Custom Fabricators, Inc has been the primary manufacturing company for Orleans Elevator since the late 1980’s. This partnership with Orleans began with manufacturing the control panels for elevators. Now with the concept of outsourcing, the manufacturing company provides more than just parts, they provide whole
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The manufacturing company could have an impact on product quality and the timeliness of production which could hinder success as an order winner and maybe even as an order qualifier for Orleans.
It has become obvious to Ben Lawson that there has been a change in Orleans Elevator’s priorities. They seem to be moving from qualifying products based on quality and reliability to basing them on price using the criterion of cost as they as they consider who will be awarded the contract (the order winner) and this has brought Ben to be concerned in the security of his business’ relationship with the company.
Custom Fabricators is trying to determine if and how they will remain a possible candidate for Orleans Elevator. With the prospect of outsourcing raw materials, Ben realizes that the outsourcing of manufacturing could be next in line with Orleans philosophies. Oftentimes a company will need to reevaluate their business model to stay competitive. Custom Fabricators should immediately identify what their position is in comparison to other companies in the market (local or global) to determine how to better position the company for continued success. Next they should develop or revise their manufacturing strategy.
The manufacturing company should consider expanding by providing their products to other companies in the same venue. Custom Fabricators has