Shifting from one plastic manufacturer to another takes time, research, and trust that can overwhelm some. As a leader in this transition, taking on the responsibility of steering the process challenges yet rewards those that invest those resources to get the job done. In this post, we'll explore key considerations and strategies to successfully navigate the shift to another plastic manufacturing company when the need arises. We've detailed out those steps below for your reference.

STEP 1: UNDERSTANDING THE NEED FOR CHANGE

Before diving into the transition process, managers need to understand the driving forces behind the need for a shift. Businesses closing, regulatory pressures, and ever changing marketing conditions have affected businesses in manufacturing since the 2020 pandemic with lasting effects. Acknowledging these factors will help managers set clear goals and expectations for such a transition.

STEP 2: CONDUCT A COMPREHENSIVE BUSINESS ASSESSMENT

Firstly, before making any significant changes, leaders need to know how to conduct a thorough business assessment with those companies that interest them. This involves evaluating that particular business’s current manufacturing processes, supply chain, and overall operations. Identify areas that would contribute to your company’s “big picture” and provide beneficial advantages. Do your company’s values and theirs align with one another? How are they working to uphold those values? Do they offer a personal touch to their services, or are they more hands-off? Are they known for quality, speed, and precision?

We also recommend that you evaluate potential vendors based on their manufacturing capabilities, product quality, pricing structures, sustainability practices, and overall reliability. Leaders need to perform thorough due diligence in this phase as it's critical to mitigating risks and ensuring a smooth transition.

We think it more beneficial to focus less on how alike one company is to their previous vendor and more on how they accommodate and adapt to the changing business landscape. Think about agility, presence, or other qualities that match your own ethos. While having an AI perform the quoting work instantaneously has its advantages, they also miss some key factors that they forget to incorporate, providing an incomplete quote that can create more headaches down the road.

STEP 3: BUILD A CROSS-FUNCTIONAL TEAM

Successfully navigating the shift to another plastic manufacturer requires collaboration across several departments. Assemble a cross-functional team that includes experts from production, R&D, procurement, and quality control. This team will play a crucial role in brainstorming ideas, implementing changes, and ensuring a smooth transition without compromising the quality of the final product.

They will also provide invaluable knowledge of other areas that need the attention the new manufacturer could fulfill. Having regular conversations with these team members can deliver some insights that could increase efficiency overall among other benefits. Shifting companies can grant managers new perspectives on issues that (for whatever reason) did not receive much thought before now. This is an eye-opening opportunity to advance the business itself — if you have the right team to deliver those results.

STEP 4: RESEARCH MANUFACTURER'S VENDOR PARTNERSHIPS AND TECHNOLOGIES

In our experience with those making the transition, two of the most important aspects that affects a company’s decision to transition is exploring alternative technologies and established partnerships to continue innovation. Other manufacturers may use more traditional methods or keep partners that may no longer align with your market’s current best practices or your business goals. Investigate the potential cohesion between all involved parties. Will their partnerships bring unexpected issues down the road? Will those affect the quality of your product?

We also recommend that you stay informed about the latest advancements in sustainable manufacturing technologies to make well-informed decisions. This ensures that their company aligns with both your environmental goals and business objectives.

STEP 5: ENGAGE STAKEHOLDERS AND COMMUNICATE EFFECTIVELY

During this transition, transparency between teams is paramount. Communicate the company's commitment to business goals with internal and external stakeholders while engaging with employees, suppliers, and customers to build support for the shift. Also, establish open lines of communication with the new vendor, emphasizing the importance of collaboration and a shared commitment to this partnership's success. If a vendor doesn’t respond to inquiries, slow to hand over important information, or does not clearly state their intentions, it might be best to move on.

STEP 6: ENSURE REGULATORY COMPLIANCE

Compliance with local and international regulations are non-negotiable aspects of transitioning. Leaders must verify that the new vendor adheres to all relevant industry standards and environmental regulations. Conducting a comprehensive compliance audit will help prevent potential legal issues and ensure a seamless transition without supply chain interruptions.

STEP 7: NEGOTIATE FAVORABLE TERMS

When considering a new manufacturer, think about the entire “equation”. It’s more than simply getting the best price. We undeniably understand that price influences many decisions, but you will also need to look at what else a manufacturer has to offer. What will you get in this new partnership: quality guarantee? Specialized knowledge? Rapid response?

In the vein of pricing, though, consider factors such as pricing structures, payment terms, and both your and the manufacturer’s contractual obligations. Leverage the opportunity to secure terms that align with your company's strategic objectives, ensuring a mutually beneficial partnership that supports long-term success.

STEP 8: IMPLEMENT INCREMENTAL CHANGES

Shifting the entire manufacturing process for a product cannot happen overnight. Implementing incremental changes makes for a more manageable transition. If you haven’t already, you will need to develop a timeline that includes key milestones, such as the initiation of the contract with the new vendor, the phasing out of the existing vendor, and the complete transition to the new supplier. Collaborating closely with both vendors facilitates a smooth handover and avoids any unforeseen challenges.

We strongly recommend that managers also consider piloting certain products before scaling them company-wide. This phased approach enables those to identify and address challenges while gradually integrating into the overall operations.

STEP 9: MONITOR AND ADAPT

The transition process will require continuous monitoring and adapting. Implement key performance indicators (KPIs) to measure those initiatives' success. Regularly evaluate the impact on production efficiency, cost-effectiveness, and environmental footprint. This data-driven approach will enable managers to refine strategies and make informed decisions for the continued success of the transition.

Shifting and transitioning when other manufacturers can no longer meet your business’s needs is a necessary step in today's commercial and industrial landscape. By understanding the need for change, conducting comprehensive assessments, building cross-functional teams, researching, and planning, managers can successfully navigate this transition. Implementing incremental changes and maintaining a commitment to monitoring and adaptation will ensure the long-term success of the shift, ultimately contributing to a more successful future.