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Innovation for Global Business: Meeting the Ever-Increasing Demands of Clients - A Case Study

I have been working in the global eyeglass send the best we can, as always."For my
manufacturing industry, supplying raw business, this often killed the chances of
materials, parts and accessories to finding a non-Japanese source for
distributors and manufacturers around the supplying my clients in the Chinese
world, since 1999. When I first began, market. This way of dealing with a request
there were manufacturer pockets around the is a dead end because it does not meet the
globe in various countries. As time went customer's needs. Here are the reasons
by, like many industries, the demand for why:1) Optical customers have no way of
cheaper products consistently bore weight cutting huge standard sheets down to size.
on the drive to decrease cost, which led They need the smaller cut sizes from the
to manufacturing in China. The economies beginning.2) Their machinery is much
of scale as well as the very low cost of smaller in scale than automotive,
manual labor helped to drive the exodus to building, aerospace industries, therefore
China. Difficult products are still being need smaller cut sizes of material.3)
manufactured in small clusters around the Factory loading and receiving is much
world, however the "meat and potatoes", smaller in scale therefore huge pallets
the "grunt work" has moved offshore to cause major problems. Hand-carry-able
China.Titanium (pure or alloyed) wire and sizes of material are essential.4)
sheet is the preferred material to make Scratches on the surface of the hard
frames of these days. The unit cost is titanium cannot be removed through
very expensive compared to ferrous metals, polishing of parts to get the gloss finish
however the properties are far superior. that is required for eyeglasses; therefore
It is much more difficult to work than best quality surface and proper
regular metals during the 200 step process international packing is critical.5)
to make a pair of frames. Because of this, Eyeglasses are fashion. The fashion
technology was often limited to countries industry is critically volatile and
like Germany and Japan who invested a long changing extremely quickly. The optical
time ago in developing processes to work industry gets orders for glasses and must
this material. Japan has been selling a deliver in the shortest possible time. It
lot of its technology to China in the past takes three months to make one order.
decade so that now, standard titanium Manufacturers cannot be waiting three
eyewear is usually made in China at a months for material before they start to
lower cost than Japan which has led to a produce. They choose the vendors that can
lot of "restructuring" in the Japanese supply from ready stock or in the shortest
optical industry. Those companies that time possible.6) One pair of glasses
have a competitive advantage have survived usually uses about 10-20 grams of titanium
(i.e. a specialty), however the "plane so even 20 kg of one size is a large
Jane Vanilla" types are, to a great amount for a manufacturer. They need
degree, gone.People do not know this but suppliers who will provide smaller
it takes approximately 3 months and 200 quantities.7) Quantities ordered these
steps to make a pair of eyeglasses. There days for eyeglasses have gone from tens of
is a huge amount of outsourcing done to thousands, to thousands, and now are at
specialists who do various parts of the minimum quantities of hundreds. Those
process. The titanium used in eyeglass hundreds are further divided into dozens
manufacturing must have a very good of colors making the SKU delivery
surface quality. Because titanium is so extremely small. Eyeglass manufacturers
hard (and yet so soft at the same time), NEED access to small quantities of
it is easy to make deep scratches, but materials relative to the big industries.
very difficult to polish it out. Here, not Even in China, everyone is producing now
I did not say "grinding" because grinding very small runs to meet the needs of the
connotes "making smaller", but instead use clients who must provide a huge variety of
the term "polishing" which results in a product SKUs to the market.8) The shipping
smoother, shinier surface with less is also critical so being able to cut down
blemishes. The end result is different, to sizes that will be carried by the post
therefore the terminology is office, or a very cheap courier is
different.Because removing scratches from essential. Sending small quantities via
titanium is difficult, the manufacturers Air Cargo, or Sea Cargo is prohibitively
demand the highest surface quality. expensive. The buyers/the market forces
Eyeglasses are a fashion, they are are driving the selling price down of the
painted, plated or coated and then worn on eyeglasses. Because eyeglasses from the
the face. When you meet someone the first manufacturer do not have a large profit
thing you see is their eyes, and if they margin, the manufacturers need help
are wearing glasses you see those. Because cutting their costs; expensive shipping is
of this, the finished surface needs to be something people are always trying to do
as blemish-free as possible. Without a away with.9) Most eyeglass manufacturing
smooth surface, the paint/plating will not of standard (non-niche) eyewear (and all
apply evenly and you will end up with metal eyeglasses) is done now in China for
defective product that will not be the reason that China makes it MUCH
purchased by the wholesalers and CHEAPER than anyone else. Most ALL
distributors to put on the market. In manufacturing is done in China these days
reality, most end-users may not even for the same reason. People make product
notice the level of perfection that the in China to DECREASE THEIR COSTS. For the
wholesalers are demanding. After all, how vendors selling raw materials to China, it
do you choose a pair of glasses? You find is not possible to take 20%, 30%, 40%
a color and shape you like, put them on profit margins unless you have an
your face, look in a mirror to see if they extremely specialized material or product.
suit your image of yourself, then scan And titanium, even the special memory
your friend/family member/store clerk's alloys have become a commodity therefore
face and response to see if their unfortunately though they are expensive to
impression of the frames on your face seem begin with, a high profit margin is no
suitable to them. If so, you buy. If not, longer a choice. It simply cannot be
you keep looking. Most of the scratches done.10) Many suppliers do not really do
and blemishes that the manufacturers are the "best they can". They think that
required to prevent would not be noticed mistakes caused by "human error" are
by the end user, quite possibly allowing unavoidable. This simply is not true. All
manufacturers to decrease their defective factories make defective product but that
count allow them to purchase lower-priced defective product should never leave the
material and maybe make glasses even factory to the customer. This means that
cheaper; however the companies that order proper safeguards should be put in place
the frames go far beyond that in in order to prevent that from getting out.
detail.Because of this, the manufacturers This can be done. Guaranteed. But the
must have the best material available. question is do the people working the
This means a very high price compared to factory floor really care? This is an
other titanium used in non-eyewear issue. It is even MORE critical in this
industries. There is a constant drive to day and age to find a partner that DOES
find a lower priced titanium material for care and is willing to improve and take
eyeglass manufacturing, but to date, the responsibility for products that slip
only material suitable is that which is through their net and make it to the
made by the Japanese. I have tried customer causing them inconvenience. We
supplying US material, Russian and Chinese are always looking for partners that are
but all fail for their various reasons. continually working to improve their
The U.S. material surface is not up to capabilities in all aspects of the
quality because it is used mainly for project.Even though the eyeglass industry
"rougher" industrial purposes. The Chinese is very small compared to the jumbo jet
and Russian is still unstable in terms of aircraft industry, there is a huge
content.The manufacturers also demand population in the world who need
tight tolerances in the material diameter eyeglasses as a "medical tool" (lower
or thickness. Usually tolerances for income bracket), and those who want the
titanium in the optical industry are +/- tool to be a fashion statement (higher
0.02 or 0.0.3 mm.We have two levels of income bracket). Because of this, overall,
quality for titanium sheet here in Japan. the industry is quite large and the market
One is like a "mirror finish". Obviously is definitely there.Since things have
it doesn't reflect like a mirror, but it changed so dramatically in the past 15
is smooth. This is what the manufacturers years, and the markets have truly become
need. The other one looks like someone global, it is even more essential for
slathered a thin layer of epoxy on the companies and individuals wishing to
surface and then sprinkled sand over it. improve their market share to be always
This CANNOT be used to make eyeglasses.For looking for new innovative ways to improve
titanium sheet, usually anything under 3 their competitive advantage in the market.
mm thickness by Kobe, Sumitomo, Shin Those that struggle to find a way to break
Nittetsu are usable as is. For thicker down the barriers are the ones that
sizes, the surface gets too rough and we succeed. This is why competition is so
have to use a cold rolled sheet. This important and why monopolies actually
meaning I would order 4 mm, my supplier hamper the market. Without competitors
would have his supplier roll 5 mm down to there is no need to innovate, offer more
4 mm so the surface was smooth. Again, to the consumer, improve your abilities,
this process drives the price up on increase your knowledge-base and develop
titanium that has already been increasing the market in new and unique ways. Without
dramatically in the past year.Eyeglass competition none of the affordable
factories are "small" compared to other luxuries we have would ever have been
industrial processing plants. The machines available at prices the average consumer
are small, hand operated, and so forth. could afford.Competition, innovation,
The size of the sheets that feed into the education, a demanding market of educated
machines are limited. This means that users and a burning desire to find "the
standard sheets (usually 1m x 2m) need to next edge" are essential to a successful
be cut into about four pieces in order to business.Any companies who are willing to
be used by most manufacturers.The take those challenges and try their luck
manufacturers of the titanium will not cut at the market will likely succeed if they
the standard sizes sheets, however the keep at it and do not give up, in spite of
wholesalers who buy bulk and stock in the challenges and head-banging they will
Japan will. They know this is necessary inevitably face. Any companies like that
for the industry. I have yet to find a out there, interested in entering the
company outside of Japan that is willing Japanese market with an unique service or
to do this; making the sale of sheet product are welcome to contact me any
extremely difficult to the optical time!Cameron has lived and worked in Japan
industry from non-Japanese sources.My for over 15 years. Originally a researcher
advice to suppliers outside Japan is this: and educator he has a penchant for details
This process may be different from what and a natural born flair for communication
you or your manufacturers are used to "soul to soul".His extensive experience in
doing, but in this global age, we the culture, coupled with language fluency
constantly have to be innovating and and a deep understanding of Japanese
finding NEW ways to do business. We need ethics, morals and thought processes has
to meet the ever-increasing demands of our allowed him to develop a special niche
clients and gain a competitive advantage market in the business world.While working
over the other rivals looking for to develop a global presence for a
business. The old established ways that titanium raw material / parts &
worked so well for so long no longer accessories distributor for the eyeglass
apply.Here is an example of a situation manufacturing world for 5 years, Cameron
that occurred many times over the past six saw the difficulties small/medium sized
years:Customer: "I need 20 kg of Beta manufacturers were having themselves
titanium sheet 0.8mm thickness, cut sizes trying to expand their businesses outside
of about 1m x 0.3m. Courier is too of Japan. He decided to assist those kinds
expensive so please send via Post. We of businesses get started
urgently need this material and we need it successfully.Currently Cameron owns and
in good condition."Supplier: " The minimum operates a one-man (one dog) SOHO business
quantity 200 kg, and dimensions are 2m x designed to help Japanese and foreign
1m. Delivery is 3 months. We don't pack companies come together in business in a
for international shipping. We don't cut very efficient, effective, and
down to size. We only ship by courier. We cost-effective successful manner.




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