Inovance Technology has encountered a lot of trouble recently.
This year, the supply side of the industrial automation industry has undergone tremendous changes. Raw material prices have soared like a wild horse, delivery times have been delayed again and again, and industry chain prices have fluctuated violently.
The company revealed to the research agency on May 25 that the current situation is indeed very difficult.
The sharp increase in raw material prices has forced Innovation Technology to adjust product prices.
Fortunately, in the field of industrial automation, price transmission is relatively smooth, and customers have not turned their backs on this.
However, the problems don’t end there.
In the first quarter, Inovance Technology’s orders came in like a snowflake, but the company’s internal production capacity was insufficiently prepared, which led to serious problems in the delivery process.
Just like the saying goes, “It’s hard for a clever woman to make a meal without rice.” If the production line can’t keep up, no matter how many orders there are, it can only be done in a hurry.
Delivery did not meet expectations, directly affecting the company’s performance.
The market will not easily forgive this so-called “happiness trouble”. Once customers are impatient, competitors will not sit idly by.
In the second quarter, Innovative Technology is racing to catch up with production capacity.
However, no one is sure whether the gap in the first quarter can be made up.
Some people may wonder, how can a company with leading technology be stuck in production capacity issues?
In fact, the answer is simple: growing too fast is also a risk.
Rising raw material prices, tight delivery times, and price adjustments in the industrial chain. When these three mountains come down, any company will feel tremendous pressure.
Inovance Technology’s ability to stabilize its position in terms of price is already considered to be a certain skill.
It is a pity that the production rhythm has not kept up. It is like “pressing the gourd and lifting the ladle”. After one problem is solved, another problem appears.
This situation has sounded the alarm for companies.
Enterprises cannot just focus on the number of orders. Capacity flexibility is the real hard work.
When raw material prices rise, the ability to pass on costs often determines the survival of a company.
Inovance Technology has done a good job in price transmission, but it seems to be stretched in terms of production. This is actually the epitome of many growing companies.
In a period of rapid growth, production capacity planning must be ahead of orders. Otherwise, it will be like running a marathon. If you rush too fast in the first half, problems will occur in the second half due to lack of physical strength.
The market will not wait for anyone. Whether Inovance Technology can successfully turn around in the second quarter will be revealed soon.
Enterprises must remember this lesson and never let production capacity become their Achilles’ heel. Only by planning and managing production capacity well can they remain invincible in the fierce market competition.
