lean-startup, leanI’ve read ‘The Lean Startup’ book by Eric Ries where he talks about why it’s better to make your product one-by-one and the just-in-time philosophy. But I was wondering if you have to deal with external suppliers, like packaging. They don’t accept very small orders, and give big discounts on high volume, then there is no way to apply the JIT philosophy, because you have to order always in big batches. Is this inevitable or are there other solutions to provide to suppliers?
There’s a wide difference between running a company with so much money you need to figure out how to best spend it and a bootstrapped one. Keep in mind that Eric Ries’ world is the former. (And for that matter always keep this in mind while reading business books.)
Is this inevitable or are there other solutions to provide to suppliers?
Yes there is. And not necessarily where you think it is.
There are small businesses out there that specifically cater to small series. I know this first hand, having worked in a small pharmaceutical firm that sold small series of all-in-one sterile health kits used by health practitioners catering to specific health care requirements. Clients included pharma giants like Bristol-Myers Squibb. And we had plenty of competition doing this.
They’re not necessarily easy to find, but you’ll find them eventually. To do so, keep networking in mind while searching: any time you’re told “no we don’t do this” ask something to the effect of “any odds you know some company that does?” You’ll eventually run into someone with industry know-how that will lead you to the right companies. Once you do, also ask how they compare with their competition - you’ll invariably run into a sales person that’ll name a few competitors.
Also, be wary that they’re not necessarily where you’d think they are. China is cheap but they’re into large series. Small series is more of an expensive thing that you’ll find in developed countries.
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