CUSTOM FABRICATORS .INC CASE PRESENTATION By Radha Shalini Srikanth Vanaja 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 subassemblies. They are trying to reduce the costs. 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 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.