Michael Mapes is the CEO of Trivium Packaging.
There is no doubt that we live in very exciting times when it comes to innovation. The Internet of Things (IoT) has significantly changed how we live and how businesses operate. New products, services and jobs have been created, and businesses have the ability to run far more efficiently than just a couple of decades ago. Now, we are on the cusp of a new wave of development as AI opens up new ways of doing business.
Although we are still working out how AI will change our world, the impact it’s had on business is undeniable. As a CEO, I see the potential (and the risks), and I am excited about the positive effects it could bring. However, at the risk of sounding like a Luddite, I also believe it’s important not to be distracted by technology just for technology’s sake. The basics in business still matter.
Customers want their products on time, in full and with the expected quality. It’s not rocket science, and you don’t need AI to tell you this. I believe that if you want to grow your business, you need to focus on quality, service and safety. Getting the basics right can build trust, which can in turn earn you the license to grow, to challenge and to innovate.
Quality today creates the standards of the future.
In my experience, customers who receive reliable and well-crafted products are more likely to become repeat buyers and brand advocates, creating a cycle of sustained business growth. Getting quality right also makes sense on the cost side, as it can help you reduce scrap, returns and the need for additional production.
Moreover, a focus on quality raises the bar and helps create the new standard. The word “standard,” or even the dreaded “commodity,” is often met by a raised eyebrow or an upturned nose, especially in these days of shiny new technology and AI. I see it differently: Standardization is proof of successful business practices and can create a springboard for further development. When a significant part of your assortment meets the quality standard in a reliable way, you have a healthy engine that can finance innovation to drive future growth.
Service should be on time every time.
We’re not exactly patient consumers these days. Overnight deliveries are the norm, and people can even track delivery progress step by step on an app. The expectations for B2B deliveries may not be as taxing as in the B2C world just yet, but every company wants their orders fulfilled on time and in full. After all, they also have orders to fulfill, and one weak link in the supply chain can have knock-on effects throughout the chain.
Like quality, service is a basic business fundamental that can build trust, earning you the license to grow.
Safety makes business sense.
The third basic business fundamental is safety, and this one is close to my heart. It’s a cliché now, but I really mean it when I say that employees are our most valuable asset. They make the products that keep businesses running. Protecting our most valuable asset seems like a no-brainer.
A safe working environment should not only comply with regulatory requirements, giving you the license to operate, but should also improve employee morale and productivity. I’ve experienced firsthand that when employees feel safe, they are more engaged and motivated, which translates into improved quality and service levels. Ensuring employee safety can also help you retain the skills and expertise your company needs to grow, scale and attract external talent who can complement your internal capabilities.
How can you use AI to improve the basics?
Although the basics are important, there is good news for the shiny AI adopters: Artificial intelligence can play a pivotal role in improving the basics.
For instance, consider using AI-powered predictive maintenance to foresee equipment failures before they occur, ensuring your manufacturing runs safely and without unexpected downtime. AI-driven quality inspection systems have the potential to detect defects with greater accuracy and speed than the human eye, reducing the likelihood of faulty products reaching customers. And AI analytics can process vast amounts of production data to identify patterns and anomalies, enabling continuous improvement in your manufacturing processes.
Artificial intelligence holds promise for improving service, as well. You can use predictive analytics to gain demand forecasts, optimize inventory levels and anticipate potential disruptions in the supply chain. Machine learning algorithms can help streamline route planning and facilitate real-time tracking, reducing transit times and improving delivery accuracy. Additionally, I have observed more companies using AI to enhance warehouse operations through robotics and automation to facilitate faster and more precise order fulfillment.
Finally, these systems can also benefit your safety goals. As mentioned, AI-powered systems can analyze real-time data from machinery and environmental sensors to identify hazards like equipment failures or unsafe working conditions. You can also implement AI-driven safety protocols to monitor your organization’s compliance with safety regulations and alert managers to any deviations.
It’s all connected.
Technology and AI can help drive efficiencies and innovation in significant ways, but we need to get the business fundamentals of quality, service and safety right in order to build a sustainable foundation for growth.
It’s also not enough to get one or two out of three right. Bad quality will still be bad quality, even if it’s delivered on time and in full. The highest quality will not be appreciated if it doesn’t reach customers when they need it. And as my company’s Global Health and Safety Director says, “If you fix the safety issue, you fix the quality issue.” The three basic business fundamentals are all connected, and getting them right can pay dividends.
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