Help For Suppliers

Example of the Difference Between Core & Supplementary Capability

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The Manufacturing Network Search Engine differentiates between "Core" and "Supplementary" processes - this provides a far more useful search profile for buyers looking for specific capabilities.

 

Here's a simple example of the difference...

MN Ltd is a machine shop, they have a range of milling, turning and some grinding capability, however for jobs involving a lot of grinding they choose to either subcontract it out to a precision grinder "GN Ltd" or send the customer to GN Ltd direct.

MN Ltd also offer a range of finishes for their machined items, including the usual suspects; Hard Anodising, Nickel Plating, Mechanical Polishing etc. These services are always subcontracted out to a finishing company, "FN Ltd".

So...

MN Ltd therefore offers a range of machining services including CNC Milling and CNC Turning as Core capability - because if the contract involves using these capabilities, they will take on the contract.

The Grinding facilities at MN Ltd would be treated as Supplementary capability in this instance. The acid test being, if a contract involves mostly, or exclusively using the grinding equipment, MN Ltd will either decline the contract or simply not carry out the work themselves anyway.

The range of finishes that MN Ltd offer are clearly Supplementary capability - MN Ltd will not take on a contract which involves mostly, or exclusively these finishing processes. These are offered in addition to the Core services.

 

Simple, right?

The key factor differentiating between Core and Supplementary capability is whether you would take on the order based on your capabilities.

It is clear - as a machine shop, you do not want to be approached to "Zinc Plate" some free-issue sheet metal brackets....unless you needed to machine those brackets...in which case you may consider it.

 

Core

You would take on a contract as long as it included these capabilities

Supplementary

You would not take on a contract that called on these capabilities exclusively.

 

 

What It's Not...

This is not to be confused with "in-house" vs "Subcontract" - This is not always true...

In the above example, MN Ltd actually had Grinding facilities in-house, however if a contract had involved exclusive use of the Grinding capability, they may not have taken on the work - this is a perfect example of an in-house Supplementary capability.

 

 

Why is this even important?

Well - you do your best, most efficient, most profitable work with most reliability when you do what you do best - your Core capabilities.

And buyers....well they want the right supplier for the right job.

Defining your Core and Supplementary capabilities accurately helps align your capability with the buyers requirement - meaning everyone wins!

 

Select your capabilities now - Click here to go to your Manufacturing Network Profile Capabilities Tab.

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