CUSTOM FABRICATORS .INC

1
CUSTOM FABRICATORS .INC

• CASE PRESENTATION
• By
• Radha
• Shalini
• Srikanth
• Vanaja

2
How does Ben Lawsons Custom fabricators create
value for Orleans?

• They have setup an efficient process for
  fabricating exactly what the plant needs with
  very little lead time.
• Orleans need not verify the quality of the motor
  housing and Ben does it perfectly for Orleans.
• They make the subassemblies instead of providing
  the individual parts.

3
What has been Ben Lawsons competitive advantage
in keeping the Orleans business?

• The location of Ben Lawsons plant which is close
  to the Orleans elevators.
• They have built a very good relation with Orleans
  over the years, providing them quality products.
• Ben has a very loyal group of employees that
  ensures that he remains competitive.

4
Have Orleans priorities changed?

• They are trying to outsource the manufacturing
  process. Initially they were obtaining the
  fabricated parts and assembly the entire unit.
  Now they are trying to procure subassemblies.
• They are trying to reduce the costs.

5
Should Ben change his business model?

• Yes, he should change in order to become more
• competitive.
• - He should try backward integration. Procure the
  raw
• materials himself and supply the fabricated
  products to
• Orleans.
• - Orleans seems to be moving towards outsourcing
  the
• entire manufacturing process. He can take up the
• manufacturing

6
How should the Ben position his company in the
value chain?

• They can position themselves as a manufacturing
  unit.

7
What should Ben do to ensure his companys future
success?

• He should adopt strategies that will make him
  competitive
• with the times.
• Like changing to a manufacturing unit.
• He can also reduce his costs either by reducing
  the
• employee costs or by procuring the raw materials
  himself
• so as to supply his goods at a much lower price
  than what
• advantage the Mexican suppliers can give them.