Making Customers’ Lives Easy
Compass Precision is a leading supplier in CNC machined and fabricated parts. Compass makes components with demanding geometries, tight tolerances and exacting surface finishes. Some of the materials it works with are difficult to machine, cut, and bend.
Because of its wide skill set spread across many geographically dispersed operating companies, Compass is a natural place for customers to do one-stop shopping for difficult-to-make parts.
To learn more about everything one-stop shopping at Compass, we recently spoke with VP Sales Jim Miller. Here is what he said:
Q: One of the main ways Compass Precision makes the tough stuff for its customers is by taking advantage of high-end processes at its various shops. Customers are offered the convenience of dealing with a designated contact who can access capabilities throughout the Compass organization to best meet demanding customer needs.
How does Compass use one-stop shopping to do what most CNC machine shops can’t?
A: It’s one of the many elements that makes Compass so different and versatile. We can work together to solve a customer’s immediate needs and also solve a majority of their requirements through collaboration and distribution of that project with several different companies.
It’s extremely unique in this industry how we can work together, take a specific portion of a project, whether it be programming, manufacturing or inspection, and distribute that amongst several companies.
Q: Could you provide an example of that?
A: Quality Products had an opportunity with a new customer, and it was a difficult, large part. So large, it wouldn’t have fit on a machine at any operating company besides Quality. But Quality didn’t have, (at that time) the expertise to be able to build the fixturing, develop the programming and engineering for the inspection. Enter Gray Manufacturing, who had the right personnel, experience, and skill sets for the required CNC programming and equipment base for the inspection, and they put together a manufacturing and inspection plan for Quality.
Between the two operating companies, we were able to solve this customer’s needs and get them out of a major bind. It wouldn’t have happened without Quality and Gray collaborating.
Q: Who is the ideal customer for one-stop shopping?
A: A customer that has exacting needs. They know what they want. They need difficult parts. We like to make the tough stuff, and they might have several different processes. Whether that be a customer who has unique materials, difficult geometries, special processes, or difficult inspection criteria. There might be a company that can fit the bill for a couple of those types of requirements. But we can fulfill all of them.
Q: Take us through how one-stop shopping typically works at Compass?
A: We will utilize the strength of one company and a strength from another to make it a one-stop shop.
We might have a customer that has 60 part numbers. We have the ability to build all 60 of those part numbers that have various degrees of equipment capability and capacity complications. We can run that through one of our companies that might have a relationship with that customer.
They then manage that job, make sure it’s done right, but part of the project might actually be happening at a different operating company. Yet, it’s still being taken care of under one roof. So, there’s not a lot of complications or conversations. There is one point of contact versus several, and it makes it seamless for the customer.
Q: How popular is this with customers?
A: Oh, our customers love one-stop shopping. The less handling and the fewer people they have to deal with, the better and more streamlined it is for them.
Q: Do multiple Compass operating companies need to handle one project for that project to be considered one-stop shopping?
A: Not necessarily. Customers can also find one-stop shopping at a majority of our companies because of the diverse equipment sets. It doesn’t need to go anywhere else. Each individual Compass shop offers a variety of capabilities and disciplines and can fulfill many customer requirements on their own.
Q: Could you provide us another example?
A: A customer’s project may require mill/turn, 5-Axis, wire EDM, fabrication, or assembly. It could also involve sheet metal, secondary machining operations or just be a part that’s an abnormally large size. It’s rare to find one company that can handle all of that. But at Compass, 4-5 of our operating companies can.
Our individual operating companies can do many of those things by themselves, so customers can streamline their projects with just one Compass operating unit.
Q: Does Compass’ one-stop shopping capabilities impact who the company targets as a customer?
A: In a way, yes. We seek opportunities that fall under those types of conditions that are easier with one-stop shopping. It’s extremely beneficial for someone like me on the sales side to walk into a situation and tell a customer, ‘I can sell all of these solutions to you.’” It’s never a situation where I have to say, “Well, we can only do this. We can only do that.’ We’re not limited, so it makes things easy from a customer solution standpoint.
Again, we like to make the tough stuff. We want a challenge and that’s what distinguishes Compass from the majority of shops. We want to work with customers that have multiple requirements, disciplines and exacting needs.
Q: Does each Compass operating company offer the same type of one-stop shopping.
A: Actually, no. That’s what makes our business model super unique. It depends on what the part is. In many cases, each of our operating companies can offer one-stop shopping in some form because there’s crossover with lots of different capabilities that each of our shops offer. But each shop offers something a little different, so each one is going to cover a different skill set toward one-stop shopping.
Q: In what other ways does a customer benefit from one-stop shopping?
A: We’ve already discussed the main benefit here at Compass, which is if a customer has a relationship with one of our operating companies, they basically have one with all of Compass. But not only could they have this relationship with their current project, customers have access to all of Compass’ operating companies for future projects. And when that next difficult project comes, that customer can already feel comfortable having worked with Compass previously.
That might not be the case if the customer is working with another company. They may have to seek out another manufacturer for that second project, and that previous relationship and trust doesn’t exist.
Again, Compass can solve all of its customers’ needs through one form of communication. And we deliver quality parts on time with a smile on our face.
Q: Compass started with just three shops. Obviously with each new shop, Compass’ offerings have grown. With now eight shops, is Compass placing an even greater emphasis on one-stop shopping?
A: Initially, with the first three shops, each one had something they were really good at. Advanced specialized in 5-axis milling, mill/turn, and wire/sinker EDM. Tri-Tec has a variety of mill and lathe machines, especially in 3/4-axis. At Quality, there are horizontal machining capabilities, including sheet metal-laser cutting, CNC forming, and fabrication.
That was the genesis to begin Compass’ process of one-stop shopping. It then continued to develop as we acquired more companies. We have eight now, with more to come.
But maybe most importantly, we have management teams at each individual company willing to work together and understand that they aren’t just a single operating company, but that they are a part of a much larger group. It benefits all to be able to satisfy that particular customer with not just your own capabilities but anything Compass can offer.
Q: How has that process been going?
A: I’d say it’s going very well. Our operating companies are succeeding in taking a lot of time, energy and difficulty off the customer’s plate. It’s taken a while to fine tune that, and to make all of our customers understand it and aware of everything we can do. It’s also about making our operating companies understand it and wanting to participate in that process. It helps them grow and Compass grows too.
Q: How important is one-stop shopping to Compass’ overall growth?
A: It’s become very important. We listen to our customers, and we take their feedback and we try to provide solutions based on their feedback, and that’s one of the ways in which it’s evolved. And that feedback could possibly impact what new companies we acquire in the future.
With any new acquisition, we want that operating company to offer something new and yet also complement what the other operating companies are already doing.
Q: Wow, so customers could potentially influence future acquisition growth?
A: Potentially. We make the tough stuff, but our other slogan is, “He who has the most equipment and capabilities wins.” So, we’re listening to all of our customers and seeing what needs we can and cannot fill. If there’s a situation where we can’t provide a solution, we typically go out and acquire a new machine. With all our operating companies collaborating, we can place that new equipment set anywhere.
So, yes, the same could possibly be said for a company acquisition.
Q: So, has there been a situation where you have already decided to buy a piece of equipment before knowing which operating company is going to have it?
A: No, usually purchasing new equipment starts with one company’s needs. But new equipment acquisition often becomes a collaboration as well.
For instance, Advanced needed a new piece of equipment, but didn’t have the space for it. So, we bought what equipment piece Advanced needed but placed it at Quality Products, where there was more space. Together, they have shared the machine.
There have also been several times where a company acquired a new piece of equipment and needed to move a machine off their shop floor. We reviewed capabilities and capacity constraints and that equipment was moved somewhere else.
Of course, when one of our shops gets a new piece of equipment, that capability and capacity is available to any Compass customer, no matter which specific operating company they might normally work with. I think this is an ideal situation for our customers and one of the many reasons I love what I do!