52 MAY / JUNE 2022 Wiring Harness News INDUSTRIAL INFO-TAINMENT
Are You Still Building Birdhouses ?
Continued from page 51
but their situation as a distributor and manufacturer , requires special handing . “ Marsh / Mar- Vac is a lot different in that we are a very sizable distributor ( Marsh Electronics ) who also has a rapidly growing valueadded center ( MarVac Assemblies ). There ’ s not too many manufacturers who have our big footprint as a distributor , so that adds to the complexity .”
Larry Manz Director of Sales & Marketing at Insource had chimed in on the original conversation and was also kind enough to share a few minutes on a follow up call . “ The last two years have been very difficult . We went from not having enough people , and not sure how orders were going to continue , to realizing the world didn ’ t burn down , and we were still going to be building things . Orders started quickly pouring in .” he chronicled .
Insource has instituted a capacity utilization plan . They ’ ve looked at each customer ’ s utilization over the past two years and have tried to keep them at the same relative percentage . “ The only way they can get more business ,” Larry mentioned , “ is if we find more people , which we are slowly doing .”
Like MarVac , Insource has had to release some customers .
“ We ’ ve had to look at how they match our core competencies and , unfortunately , we have had to send some out into the greater good of society to find their next wire harness supplier .”
In making these tough decisions , Insource has had to look at not only how they fit in their strategic growth plan , but also how they contribute to the labor problem ( high usage versus relatively low usage ). But the main criteria tend to be financial . “ Many of these decisions were based on profitability . I think we had three price increases last year , and we didn ’ t lose a single customer . We thought that was a lever we could pull to filter out some of those customers , but they just kept coming ,” he instructed .
Larry indicated that , because of Insource ’ s great track record with quality and OTD , they actually have a list of past customers who wish to be notified when capacity issues improve . “ We ’ re currently adding people to our staff , and whenever we have an opportunity or an opening to slip someone in , I know exactly who I ’ m going to start calling .”
Let us know what steps you ’ re taking to combat capacity issues . You can email me at joe @ wiringharnessnews . com . I look forward to hearing from you !
Interesting Side Note
This might be fodder for a future article , but Larry made one final very interesting point . He is hoping the sales skills Insource has perfected over the years will not atrophy during this period of customer selection . I think the mere fact that they are aware of this will help them sidestep that issue in the future .