Close relations
08 May 2009
‘Working closely with customers’ has become an over-used cliché, but companies that make the effort to understand their customers’ markets can get closer to this business nirvana.
All modern businesses understand that they must work hard to maintain customer relationships. None would dispute that working closely with customers will benefit the end result; almost every corporate brochure presents this as a guiding principle. But establishing the best possible relationship is not an exact science; there are many views but no universal formula. Applying common sense, while essential, will not necessarily identify every aspect that should be considered.
If building up a relationship from scratch is difficult and imprecise, examining some aspects of an unusually close working partnership may provide some valuable lessons that can be applied more widely. In 2004, Dynamic Logic of Dunfermline, Scotland, sold its telemetry systems business to ITT Water & Wastewater to concentrate on its manufacturing services activities. The renamed Dynamic EMS continued to produce the telemetry modules on behalf of its new customer. While engineering and marketing staff transferred to the ITT-owned business unit, the manufacturing team remained with Dynamic EMS to concentrate on building the modules.
It was a good position from the start, with open and frank communication channels already existing between staff at all levels. Also important was the fact that Dynamic EMS already had a clear understanding of end user markets and the practical challenges that its customer, ITT Waste & Wastewater, would be dealing with. From the manufacturing point of view, staff were also familiar with how to deal with supply-chain challenges such as managing forecasts, market fluctuations, and supplies of components and materials.
Specialised technology and products
ITT Water & Wastewater is using the telemetry modules with its range of pumps that it sells globally to customers such as water companies, rail infrastructure management, municipal authorities and industrial site owners. When installed, the telemetry systems feed back information to a central controller from various sensors allowing managers to quickly read important indicators such as the operational status of each pump as well as environmental factors such as the filling of a rainwater sump. In this way, pump telemetry helps to diagnose any problems in the system and thereby enables the operator to guard against flooding.
In total, Dynamic EMS is building 14 standard telemetry modules, providing choices for customers as to aspects such as case size, number of inputs, and co-integrated functions such as level and pump control. The modules can be built for battery or mains power, or both. They also have a plug-in interface for a communications card, which allows customers to communicate with the module via a wired PSTN link, wireless GSM or Bluetooth, satellite communication, or serial RS-232. Even so, customers may ask for special configurations for a number of reasons; they may need to fit the module into an existing control cabinet, or to update an existing module without complicated rewiring.
Bringing knowledge to the table
In a recent example, the ITT Water & Wastewater sales team had been negotiating a large refit for a water authority, which required the telemetry and control system to be mechanically compatible with its existing installation. Dynamic EMS was able to help meet the water company’s needs quickly by using its own knowledge of this application space.
Tony Higgins, Managing Director of Dynamic EMS, said: “We understood the technicalities and the reasons behind the end user’s request immediately, and used our contacts to arrange for an independent technical specialist to advise on the best way forward. By taking an active role in helping to make the necessary changes, we worked with our customer to deliver a satisfactory solution very quickly. This led to winning the order, and ultimately secured a valuable contract for Dynamic EMS.”
Tony Higgins highlights other areas where previous experience helps Dynamic EMS to understand important demands coming from the marketplace, such as very short project-completion times, as well as after-sales challenges including fast servicing and repair support. Historically, the company has been able to satisfy the demands of end users for rapid delivery and installation by producing units for stock, built to a generic level of functionality for completion by adding the modules necessary to meet the customer’s specification. When the units are called off, they can be quickly configured as required and shipped. Dynamic EMS has continued with this approach, now working as an external manufacturing partner, and combines this service with direct shipments to customers to further streamline delivery of completed modules from manufacturer to customer. “Our ability to understand the constraints on our customers enables us to interpret forecasts and manage the supply chain efficiently. In turn, this allows us to maintain reliable ship-from-stock capability for fast turnaround at a competitive price.”
To deliver the fastest and most efficient product support for customers as well as end users, Dynamic EMS also takes responsibility for maintenance and repairs throughout the lifetime of each product. “There is a certain logic in arranging for the people who manufacture a product to manage repairs and maintenance as well,” comments Higgins. “This reasoning is particularly sound for complex, high-tech products, especially given the high degree of modularity and customer-specific configuration that characterise our telemetry modules.”
Understanding is key
According to Higgins, mutual understanding has been a major factor enabling Dynamic EMS to enhance its relationship with ITT Water & Wastewater and enhance service delivery for end users. “Drawing on the advantages of experiencing a truly close working partnership, we are now looking at how we can change the way we work with other customers. The types of communication, the questions we ask, and the knowledge we bring to the table are all factors that we can improve.” He believes that EMS businesses, in general, can benefit from taking the time to learn about their customers’ customers and the markets they operate in.
“The conventional approach for most businesses is to ask themselves ‘How can we win more business?’ The question we are more inclined to ask is ‘How can we help our customer win more business?’ This is the question companies should be working to answer if they really believe in achieving growth by working closely with their customers.”
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