The four pillars, that support Riordan’s Manufacturing competitive advantage are value proposition, capability, strategic goals and customer interface.
Value Proposition
Riordan Mfg. succeeded in promoting high quality of products, on-time delivery and superior customers support. Customers of Riordan Mfg. value efficiency of the manufacturing and the possibility to design innovative products, which are customized to their businesses. Such approach leads to customer’s focus on the internal core strategies to grow the business rather than spending time to discover production cycle.
Capability
Riordan holds strong positions due to its geographical location and supply chain management across the regions. Since it is a North American supplier, Riordan occupies large part of the market and is able to cover the demand in molding products. Moreover, the company has production capacity to make custom molds and products in-house quickly.
Strategic Goals / Objectives
The strategic goal of Riordan Mfg. is to reduce logistics cycle by 5%. The first action step to achieve this goal is to support the North West U.S. improvement and potentially build a new warehouse. The company needs to leverage economies of scale in bottle manufacturing as well as increase the factory utilization of resources and equipment. In order to support such changes, Riordan Mfg. has to develop ERP and MRP processes and tolls that reduce costs by 10% and cycle time by 15%. The company will position itself as a leader in the delivery of ‘plastic solutions’ and capitalize on the ‘best in class’ product support.
Customer Interface
The company has a strong brand for its quality products and efficient marketing strategy. The successful branding of Riordan Mfg. franchises and branches has been one of the best sustainable differentiating strategies required of any effective marketing program. Solutions adapted to the market, consolidated approach and effective management make Riordan Mfg. a leader in high volume bottle production.
In conclusion, gaining a competitive advantage is not a simple process. It takes sound forecast, which takes into consideration a company’s threats, opportunities, weaknesses and strengths. Riordan manufacturing should continue to exhibit their solid dedication to strategic planning, analysis and ongoing improvement.
References:
1. Riordan Manufacturing Case, Phoenix Library
