The director of mechanical engineering at GB Events Technology held a meeting where he described the services and products the company produces.
GB is a large global company that makes large equipments along with industrial materials and products. The company has expanded its business to provide industrial software applications.
It uses the state of the art computer design system which enables a lot of projects to be done simultaneously. From a product perspective, GB has a large share market of about 95% in Asia, China, Taiwan and Korea. Therefore, it has a worldwide supply chain which enables it to move closer to the end users of the products.
The company uses commodity-based sourcing because it deals with very large materials in size and it does not fully put together the machines in a factory. Instead, it ships them separately to the customers with its team arriving at some particular place to set up the equipment.
The company buys different materials from various vendors and then transports them to the place where they are put together to make particular products or equipment the customers ordered.
The main challenge the business is facing is hearsay and insecurity. Hearsay comes forth when people copy the product designs. The company partners with customers and introduces new designs from time to time so that it can maintain its customers.
After partnering with customers, the chances of losing them are very low. The company has also invested in high level security software and tools to control the chances of copying designs by competitors.
The company listed in the New York Stock Exchange is well known to the public. It is usually reported in the New Hampshire Business Report. The previous plastic manufacturer company, which the speaker had worked with, was a medium sized company in New Hampshire.
To ensure quality, it succeeded in ISO 1000 and was certified because customers could only do business with the companies that were ISO certified being a marketing tool by many companies. It used statistical methods to convince the customers that its products were of good quality.
Documented inspection was done by operators who were well trained. The company focused on a value added approach in which all different components from various suppliers were shipped together as a whole to the customers.
After the year 1992, the plastic manufacturing company moved from using typewriter machines, fax machines and phones to a fully integrated system which could provide information from all retail inventories.
All the products were then distributed to Walmart and other large distributers for selling. The company could then use the supply system to know the level of stocks at any particular time in Walmart.
After the 2008 global crisis, the GB Company had made a decision to raise more capital to use it for the market campaigns with an aim of going beyond brand recognition. This in its turn enabled it to successfully compete against and with other big players at the market by expanding its distributions internationally.
Companies can have a similar access to technology and human resources but, what is important is how well they utilize their operations economically in terms of restructuring the supply chain.
The company has been successful by ensuring that there is an effective management supply chain to enable suppliers not to default at any time.