In manufacturing companies, profit margins aren’t lost in one fell swoop… they’re eaten away by “little things”:
A chemical that goes up “just a little.” A label that costs a few cents more. An urgent shipping charge because the plan changed.
An outsourced service that “includes what’s necessary” 😬 And suddenly… the margin is already thinner 😮💨
What hurts is that no one does it in bad faith. It’s just that the system allows it.
What works (without shutting down the plant):
✔ Clear specifications (no gray areas) 📌
✔ Benchmarking by component (not by package) 🌍
✔ Fixed-scope contracts (includes / excludes) 📄
✔ Monthly review routine (short but consistent) 📅
How does your company handle this?
