Every industry will enter a state of saturation when it reaches a certain stage. First movers may enjoy the benefits of high-margin orders. More and more factories pour into the remote control industry. After more than 20 years of development, the market share has been divided up. Each remote control factory can get less and less, and the large orders may be controlled by a few manufacturers. Typically, a customer may not switch suppliers of remote controls for several years. And it can take a long time for a new customer who wants a remote control to grow into a big customer. Big new customers will be harder to acquire. At the same time, due to the influx of a large number of remote control factories, in order to attract customers, there will be a price war, lower and lower prices, less and less profit. Silicone plastic and other raw material suppliers raw material prices have also begun to rise recently.
How can remote control factories ensure their profits?
Hua Yun remote control factory’s predecessor is Tian Zehua Co., Ltd. established in 2006, in order to provide remote control OEM/ODM production services for Philips brand. After moving to Dongguan Dalang, construction factory, change to Dongguan Huayuan Industry Co., Ltd. It has been more than 10 years. In the face of customer scarcity, competition pressure, raw materials, and other problems, how to ensure their own profits? Profit must start from the factory itself, external causes are uncontrollable, and its own problems are controllable. So today we’re going to talk about lean thinking, lean thinking from remote control manufacturers.
What is Lean thinking?
Lean thinking is a way of thinking that identifies value and prioritizes value-creating activities in an optimal order so that these activities are not centralised and the value stream is executed more efficiently. –James Womack & Dan Jones. It was Toyota that applied lean thinking to its factory operations. Lean thinking includes a philosophy of efficient business operations, a proven set of tools and solutions (improve response speed, reduce costs from processes, eliminate waste), and focus on the customer. Through efficient design and execution of production to reduce unnecessary human and material losses. With the fastest response to reduce the factory and customer, internal communication time loss. Reduce unnecessary waste to increase the profit of remote control factory. In this way, the factory will become well-organized, serve customers with high efficiency and speed, operate in the best condition and the best method and process, with high quality and high standards, improve its own profit, and provide the greatest value for customers.
Post time: Mar-01-2023