The truck industry is a challenging one to operate in. Competition is tough, customer demands are tough, and highly vulnerable to supply chain disruptions or long lead times for the required components.
In this business environment, it's natural to want to minimise unnecessary costs and boost profits as much as possible. Building a truck is a complex process, and multiple factors can affect your costs – but in this article, I'm going to focus on the impact that the truck's coupling system can have on your bottom line and explain the approach I believe you should take to improve your market position and boost your profits.
Trying to optimize on price can be holding you back
When your first instinct is to provide the best product you can and make a good deal, it's natural to look for the best price when purchasing components, tools or other materials. In the past, I've seen some manufacturers go to several suppliers to reduce their purchase costs as much as possible – they might buy the coupling from one supplier, the drawbeam from another, and the end plates from a third supplier.
This may seem like a cost-effective way of purchasing needed components, but in practice, buying a complete coupling system is typically cheaper than buying each component separately. Additionally, the cost of delivery, assembly, administration and troubleshooting is almost always much lower with one supplier than with many. Working with a single supplier makes it easier for the customer when maintenance and spare parts are needed, and easier for you when you need technical support.
A coupling, drawbeam or underrun protection device may seem like just one component among many – but they can damage your profitability and efficiency if you don’t approach them in the right way. In my opinion, a system-focused approach produces much better results.
Reducing costs and boosting profit with the right coupling system solution
We’ve established that most bodybuilders get better results with a full system solution rather than sourcing individual parts separately. With this approach, you buy all the needed components in a single package, such as couplings, drawbeams, endplates, underrun protection and accessories. Everything comes from the same supplier, allowing you to feel confident that the components are compatible. In many cases, the components will also come pre-assembled.
This makes the system solution quicker to mount compared to a multi-supplier solution, but when you add in the amount of work saved in administration, negotiation, purchasing and delivery, costs are reduced even further. Rather than placing orders with five different suppliers, you only have one – and all the components you need are delivered in a single shipment.
On top of that, suppliers that offer system solutions can typically give feedback and input on your planned design, help you find the best combination for your specific application and contribute with a wealth of technical knowledge. This isn't an option when you're buying individual parts from multiple suppliers, but it can also help accelerate the bodybuilding process and allow you to meet your customers' needs more effectively.
In brief, a system solution allows you to do more with your available resources. It lets you spend more time on the practical work of bodybuilding and working with customers rather than sourcing components and chasing loose ends. It offers peace of mind, reduces your total costs and can even allow you to increase your production. Hidden inefficiencies can eat up your profits, so a consolidated approach is the smartest way to boost your business.
Finding an attractive supplier
Aside from boosting efficiency in your bodybuilding operation, choosing the right system solution supplier benefits your existing customers and can help attract new ones. Not all couplings and coupling manufacturers are made equal – things like safety, reliability, ergonomics and access to spare parts and accessory options set them apart. The level of technical support they can provide and product certifications they hold are also important aspects, particularly if customers operate internationally. For your customer, whether they're a fleet manager or driver, these things can be deciding factors. After all, no fleet manager wants to deal with long lead times for spare parts, and drivers won't be happy with couplings that are difficult to operate. So identifying the best supplier doesn't just streamline your internal processes – it also creates an attractive proposition for your customer.
When you succeed in finding a supplier that can offer reliability, expertise and a high price-to-performance ratio, customers will return, new ones will be attracted, and you can motivate asking for a better price when new projects come along.
If you're a bodybuilder looking for more insights into how a system solution-focused approach could boost your bottom line, get in touch with me for an initial discussion.
