I often write about how manufacturing businesses innovate to survive and thrive in the tough economic conditions we have faced and continue to face.
The common assumption of a manufacturing business in the South East is that they must be high tech to be successful. However in our report on IP (Intellectual Property) we demonstrated that IP could take many forms and need not be confined to technology.
I recently visited Spirit Circuits, one of three businesses privately owned by Steve Driver that manufactures printed circuit boards (PCB) in the electronics industry. For those that haven’t examined the internal functioning of electrical equipment, it’s the green or brown board that the electronic components are mounted on to with conductive tracks, electrically connecting the components together.
Spirit Circuits employs 65 staff and has invested and grown in every year of the recession. In December 2013 they acquired Lyncolec in Poole, taking its total employees to over 100. This acquisition further endorsed their commitment to UK manufacturing and enabled them to broaden their product range.
One would imagine that this is a highly competitive sector and one would be right. Low cost manufacturers from overseas dominate the market and because of the volume, they can often make the finished component for less than the material cost to a UK manufacturer.
So how do Steve’s businesses compete? The simple answer is that they offer exceptional service and think of the customer first. They offer several innovative services that delight their customers and ensure repeat business. Alongside a passion for “lean manufacturing” following “lean” principles throughout the business, their Innovation and IP is in customer service and “lean” is one of the main enablers.
Amongst their services is “Ask Dave” a fast turnaround service which offers guaranteed delivery of the PCB within either 48 hours or 72 hours at lower cost. If they fail to deliver on time they give the customer their money back and £1000 in compensation. In six years of offering this service they have only failed to deliver three times and on each of those times they were only a day late but still gave the customer their money back and the cheque of £1000.
“Rescue Me” is a service built around the problem that often faces customers when they need more of an order that’s already been delivered due to a stock shortage or an urgent customer demand for a small quantity. Instead of charging a premium for these items the customer can order them online and Spirit Circuits will expedite them quickly at a REDUCED price!
Finally the intriguingly named “Go Naked” offers free fully functional and tested PCBs for those embarking on prototype products. The only caveat is that these PCBs are NAKED, they do not have the protective solder resist coating. That’s the green stuff for the non-technical readers.
The company has also now branched out into China to help customers obtain great deals on very large order requirements.
When visiting Spirit Circuits I found an exciting vibrant business determined to delight its customers and break the traditional mould of customer-supplier relationships. This has led to them being successful in a massively competitive market, securing wealth creation opportunities and employment for their staff. Their example is surely one for similar businesses to follow.
the full article can be found here http://smerocket.net/2014/04/30/exceeding-your-clients-expectations/
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