Loss of sales/bids at small, medium manufacturing companies

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Loss of sales/bids at small, medium manufacturing companies by Mind Map: Loss of sales/bids at small, medium manufacturing companies

1. Cost

1.1. Pricing too high and non-competitive.

1.1.1. Material costs are too high.

1.1.1.1. Lack of a strong, trained Purchasing/negotiating team.

1.1.1.2. Purchasing staff spread too thin

1.1.2. Seeking a profit margin that is not tenable in the industry.

1.1.2.1. Salesperson(s) is/are not collecting and transmitting to the appropriate people, the necessary word-on-the-street

1.1.2.2. Company ownership seeking unreasonable profit margins that are not commensurate with market conditions

1.2. Pricing too low.

1.2.1. Quotation errors/oversights causing credibility issues.

1.2.1.1. Lack of a strong, trained estimating/pricing team.

1.2.1.2. Estimating/pricing staff spread too thin

1.3. Over dependence of 3rd party outside suppliers

1.3.1. Lack of internal resources/machines.

1.3.1.1. Inadequate revenue to invest in additional resources/machinery/automation

1.3.2. Bottleneck at the rate controlling operations creating long delays.

1.3.2.1. Knowledge of Scheduling best practices inadequate

2. Quality - Product & Reputation

2.1. Lack of reputation - too few years in business

2.1.1. Salesperson failure to highlight strengths

2.2. Loss of reputation

2.2.1. Salesperson inadequacy to do damage control and messaging

2.3. Perceived quality issues - losing repeat customers

2.3.1. Poor Product quality

2.3.1.1. Manufacturing Operations and Quality Systems Inadequate

2.3.1.2. Too much dependence on manual processes

2.3.1.3. Non-capable machines

2.3.2. Poor after-sales support

2.3.2.1. Lackadaisical sales personnel

2.4. Compliance shortcomings

2.4.1. Certifications lacking (ISO/TS/EU-RoHS)

2.4.1.1. Engineering inadequacy to properly vet the project feasibility

2.4.1.2. Salesperson inadequacy to handle messaging

2.4.2. Failed customer quality audit

2.4.2.1. Manufacturing Operations and Quality Systems Inadequate

2.4.3. Failed to highlight other customer score cards/Prior audit results to new customer

2.4.3.1. Inadequately trained/experienced sales personell

2.4.4. Fell short in supplier self-evaluation assessment questionnaire

2.4.4.1. Manufacturing Operations and Quality Systems Inadequate

2.5. Perceived as high-risk supplier

2.5.1. Data integrity/cyber security weakness

2.5.2. Geographic incompatibility for logistics and proximity

2.5.3. Labor relations - Unionized or not

2.5.4. Capacity at max

2.5.5. Company size

2.5.6. Working capital concerns

3. Service

3.1. Long lead times

3.1.1. Bottleneck process overscheduled

3.1.1.1. Knowledge of Scheduling best practices inadequate

3.1.1.2. Salespeople influence Production Managers for unfair favoritism and prioritizing of their customer jobs

3.1.2. Lack of machines/capacity

3.1.2.1. Inadequate revenue to invest in additional resources/machinery/automation

3.1.3. Inability to add extra shift - lack of people

3.1.3.1. Inadequate revenue to invest in additional resources/machinery/automation

3.2. Bid Proposal/Quotation took too long to submit

3.2.1. Lack of a strong, trained estimating/pricing team.

3.2.2. Estimating/pricing staff spread too thin

4. Other

4.1. Do-it yourself mindset of company ownership

4.2. Could not overcome incumbent advantage of existing entrenched supplier

4.2.1. Inadequately trained/experienced sales personell

4.3. Ineffective Sales Pitch

4.3.1. Poor bid presentation

4.3.1.1. Inadequately trained/experienced sales personell

4.3.2. Poor communication of bid value

4.3.2.1. Inadequately trained/experienced sales personell

4.4. Customer "kicking the tires" - Getting additional quotes to meet internal procurement policies

4.4.1. Inadequate vetting of customer at the time of bid process inception

4.4.1.1. Inadequately trained/experienced sales personell

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