ADI in the news
As expected the July/August 2014 issue of Farm Equipment Magazine has an article on ADI. There is some good material there if you are into casting sales. For example, the article discusses Pequea Machine’s experience:
Pequea also made the transition from forecasting production to lean manufacturing where the company fills orders as needed instead of anticipating what they would sell. (Jim Westlake, Pequea’s engineering manager), says “We’re a small shortline company and we weren’t necessarily getting the same attention the big manufacturers could demand from their overseas suppliers. With our casting suppliers being local, our supply chain improved dramatically and we have better control of our production and inventory.”
The question of “length of supply chain” is worthy one to explore. This example is further evidence of the reshoring happening nationwide. There is more good material in that article, and you should by all means get a copy.
Marketing and Sourcing and Authenticity
I do Marketing at Applied Process, and I am first to acknowledge that the folks at Levi Strauss know more than I do (or at least they have a big fat staff of MBAs on the job). That doesn’t mean they cannot make mistakes. This is why you should see this article in the Economist magazine.
From a marketing standpoint I have always thought that “authenticity” always including a level of over-engineering. More specifically, using something for a purpose other than that for which it was designed.
For example, motorcycles are cool because the original bikers of the 1950’s used army surplus Harleys. Leather jackets are cool because they are worn by pilots and bikers and others who need some functionality. Sunglasses are cool because you need them to protect your eyes. I acknowledge that the relationship is not perfect - nobody wears welding helmets on the dance floor.
The easiest example is that blue jeans are cool because they are the folk clothing of America, worn by gold rush miners and cowboys. They are distinctly American. And as such the sourcing of this product matters more than one might think to some people.
Back to the Economist. Levi’s is having some marketing troubles. The article states:
One answer would be to redouble its bet on tradition by emphasising Levi’s American roots, shifting production back home and moving upmarket. That seems to have helped another Californian rock’n’roll legend, Fender, which moved production of some guitars back to its home state after a soul-destroying spell in the clutches of a media giant, CBS. But that is not Levi’s plan. It is loth to raise prices, which would cede the middle of the jeans market to rivals like Wrangler. Instead, it is taking almost the opposite tack: a new marketing strategy shifts the brand away from rust-belt edginess and toward a cheerier mainstream.
What a shame. If you cannot market “Made in USA” with blue jeans then you need a new job.