How to handle increased production demands
When commercial and industrial businesses start to grow, they will likely encounter times when demand for their products increases. This could be a temporary increase in demand that occurs seasonally depending on the products or a more consistent surge that correlates with your business developing and taking things to the next step. In any case, it’s important to know how to handle an increased demand when it occurs, which is why our expert production engineering consultants at FESS have created this useful guide with top tips.
Try to predict increases
Some occurrences of increased demand are completely unexpected and seem like they come from nowhere. However, if you start to notice trends like demand increases in certain months of the year, you can begin preparing in advance and implement strategies to manage the production surge.
This includes assessing your potential challenges and supply chain to highlight any recurring demand increases, relevant external factors that might impact your business, and identify any points in the chain where you depend on single suppliers.
Additionally, if you know when your production needs are going to be higher, you might want to think about utilising a flexible workforce. This can be beneficial as you will be able to call on an established team as and when demand increases. Make sure to work with your current staff to understand which training materials are needed and how it should be managed.
Manage customer expectations
One of the most important factors when it comes to managing demand increase is making sure your customers are aware of any potential issues or delays. You should set realistic expectations with your consumers and deliver on any promises that your business makes. A good way to keep customers happy is always being honest with them with clear and accurate information as well as offering discounts or incentives to those who will be waiting longer. In addition, customer feedback and complaints should be dealt with quickly and professionally, offering solutions to any customers that are unhappy with your product or service.
Managing customer expectations can be beneficial when handling increased demands as it maintains a good business reputation, trust, and loyalty with customers. However, from the manufacturers point of view it might take more time, energy, and resources to do so. As a result, it may be best to prioritise the most relevant, important, and solvable customer expectations.
Create a long-term plan
Once you have started accurately predicting demand increases, it can be advantageous to put together a long-term plan to accommodate demand surges moving forward. This includes organising capacity needs and making strategic decisions to increase or reduce capacity as needed. Completing a capacity analysis should be a key part of your plan to understand current and potential future production capacity and incorporate essential factors like operational, financial, and environmental factors.
When handling your production demands it’s often best to balance your short- and long-term business goals with plans for the future being taken with flexibility and caution. It’s best to take care and be certain that you can manage influxes in capacity when they arise rather than rush into incorporating in the increased demand and spreading your resources too thin.
Maintain communication with your staff
If you decide to scale up to manage the increased demand, it will likely affect all aspects of your business and staff. This means it’s essential to effectively communicate with your workers to ensure they’re happy that they can accommodate the increased workload.
Open and honest communications should be encouraged with regular reporting updates in place to identify any potential issues or challenges early and respond to them effectively. It’s vital to maintain positive relationships with your staff and suppliers who will play a key role in the success of your business. Keeping morale high will help ensure your business stays sustainable in the future once the demand begins to calm down.
Conclusion
Hopefully these top tips have given you a better understanding of how to manage increased production demands when you encounter them. If you’re looking for more support with your production process and demand, our manufacturing process consulting service at FESS Group can help. Our specialist team are industry experts that understand the challenges facing manufacturers and can work to help you improve efficiency and cost effectiveness in your production, including during periods of increased demand. Book a free site survey online with us today or contact us if you have any questions or queries.