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Business Exchange

Moving Beyond 'Make-To-Stock'

By:Vinas, Tonya
Publication: Industry Week
Date: Monday, May 1 2006
Subject: Metalworking industry, Business models
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3 QUICK QUESTIONS

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How Swagelok Co. became more than a manufacturer and began solving problems for customers.

PRIVATELY HELD SWAGELOK Co., CLEVELAND, has been evolving from a traditional manufacturer of fluid system valves and fittings to an innovative and adaptive global provider of products and sendees. It is transitioning from a "make-to-stock" fulfillment model to a more customer-centric make-to-order, configure-to-order and engineer-to-order offering.

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Swagelok Co. President and CEO Arthur Anton

IW: How specifically has offering custom-made products helped Swagelok? Did you secure new customers? New business from existing customers? A higher price?

Anton: About two years ago we conducted a global survey and learned that customers were open to receiving more products and services from Swagelok. They wanted more than our traditional fluid system components. They wanted to tap into our technological expertise to help them solve problems. But as tempting as it was, we didn't rush right into new development activities. First, we spent some months shaping our company's vision: "Truly understand our customers' needs and act on them." Then, we went to work on providing new services and a wider product range. We redeveloped our Voice of the Customer (VOC) process to improve our batting average when bringing out new products. That process entails, among other things, detailed interviews, collaborative design and beta testing of our initial designs.

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