Transcript Document

How does Ben Lawson’s Custom fabricator’s
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.
What has been Ben Lawson’s competitive
advantage in keeping the Orleans business?
The location of Ben Lawson’s 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.
Have Orlean’s 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
They are trying to reduce the costs.
Should Ben change his business model?
Yes, he should change in order to become more
- He should try backward integration. Procure the raw
materials himself and supply the fabricated products to
- Orleans seems to be moving towards outsourcing the
entire manufacturing process. He can take up the
How should the Ben position his company in the
value chain?
They can position themselves as a manufacturing unit.
What should Ben do to ensure his company’s
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.