Metro Plastics Technologies - The Emphasis is on 'Solutions'
By Kym Conis (Plastics Business winter 2007 article) (Page: 1 2 3 4)
Customer Evaluation Starts with Communication
Another essential ingredient to Metro Plastics' value proposition lies in its ability to communicate with its customers regarding their individual needs. "Back when we entered this business, the larger customers seemed to be more straight forward with their needs. Today, terms and conditions have become one-sided and overcapacity in the molding industry has created a supply and demand imbalance," states Hahn. Metro is looking for customers that don't need that leverage - companies who are looking for solutions, whether they be in design, molding technology, warehousing, metal fabrication, or even its newest capability, custom precision machining.
"We want to offer solutions to our customers, which might be in the form of solving a molding problem or it could be providing design help, prototypes (metal or plastic), or it could be supplier managed inventory," explains Hahn. For example, supplier managed inventory allows Metro to better schedule the machines, be more efficient, and thereby produce better quality products - all positive advantages to both Metro and its customers. Or, customers may choose to inventory the product at their own facility and then report back to Metro. The product is then shipped in bulk, which reduces transportation cost. "It's all the result of being able to have good, open communication with your customers as to what their needs are," states Hahn. "We look for a customer we can help and we design a program, not just a part, to meet their specific need."
To that end, Metro has devised a 12-point part analysis that it asks new and/or existing customers to fill out in order to better meet their needs. The analysis, called the 'Plastics Part Physical', covers potential issues such as application requirements, material selection, tooling, quality, packaging, order requirements, and more. "If you ask a customer what points he is having problems with, he can't always list or verbalize them," states Hahn. "We put our questionnaire in front of them to extract a response. You uncover a lot of things by going through this list, point by point."
Meeting expectations is a two-way street and at Metro Plastics, the customer also must meet certain expectations. "We are ISO 9001/2000 certified. We understand that this is important to our customers. However, there is no certification for what comprises a good customer," explains Hahn. Gone are the days of trying to attract as many customers as possible, as was the case some thirty years ago when Metro first entered the plastics arena. Today, Metro is selective as to the type and size of the customer it approaches. "We do a little research up front," states Hahn. "We are not looking for a customer but instead, the right customer."
Metro evaluates each opportunity and customer in several areas including type of business, reputation, vision, market share, engineering capabilities, location, product mix, purchasing style, terms, and so on. "We then consider the impact that the new business might have on our business. We want to grow but we want to do it in a controlled manner. Not every opportunity is right for us," states Hahn.
