
my point of view
Better Communication Leads to Better Business
How well does your sales staff communicate with your operations crew? Does the operations manager inform sales about changes in the reserves and how that may affect the stones performance properties? Does the sales staff talk about changes in customer demand and how operations may need to adjust product sizing to fit those changes? Do the two departments work together to minimize the amount of fines being stockpiled at your operation?
The way you answer these questions may impact how well your business is able to compete in a tight economy. For example, if your production crew is working to boost production of 56s, you want to make sure that your sales staff isnt out pushing 57s or vice versa. Matching supply and demand is key to maximizing your operations profitability. According to Scott Alexander, corporate vice president for Rogers Group, Inc., strong interdepartmental communication allows you to lower inventory costs, reduce production costs, improve cash flow, and increase your margin per ton. Clear, consistent communication is essential to that process.
One way to encourage quality communications is through regular meetings between the sales and operations staff. It can be as simple as making sure that the left hand knows what the right hand is doing, or as sophisticated as an integrated training program between the two departments. However your organization goes about encouraging this communication, the objective is to create common goals for sales and operations.
To better educate its staff, some aggregates companies have key personnel in each department walk in the others shoes. For example, an operations manager may accompany the sales staff on some customer calls. This experience can give important insight into interaction between the business and its customer base. The operations manager hears what kind of questions the sales staff receives and can provide important feedback on the availability of various products. He also knows what changes may be necessary to meet those requests and can advise the sales staff on the corresponding costs.
Conversely, the sales staff might spend some time at the plant to learn how the product is sized and what changes are necessary to meet various product demands. This ensures an appreciation of what the operations staff must do to comply with customer requests and may inspire careful consideration of what promises are made based on a better understanding of what it takes to fulfill those promises.
Building better communication between departments is not likely to happen overnight. Its an evolutionary process, but the results are worth the investment. Satisfied customers. Faster inventory turns. Better cash flow. Sounds like an idea whose time has come.