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If you are reading this article you are probably a member of a very unique group in the business world: a direct retail manufacturer.
This may not sound very unique to you, but think about it. How many different companies do you know that actually manufacture a product and then sell it to the public, from the same location?
Comparatively speaking, there is not that many.
This unique position in the business world also causes unique difficulties within companies, as the reality of production needs clash with the need to sell more products.
From this fact streams what seems like an unending series of problems. But wait. Not every difficulty is a problem. Some are situations. Situations require a different approach. Recognizing the difference between the two can save you a lot of time, money and frustration.
Simply put, problems are events that have a definite solution that will eliminate the problem. Situations often cause problems, but they are really events where no solution will keep it from happening again.
In other words, problems can be solved. Situations can only be successfully managed.
Here are two simple examples. Problem: A part breaks in a piece of equipment. You quickly order a replacement part and install it. Problem solved.
Situation: Several important regular customers constantly give you their big orders late, giving you very little time to produce it and causing production problems with other orders. If you demand they get their orders to you quicker, you risk losing them.
To help yourself, you set up a routine just for them. You call them two weeks before you would really like to have the order, confirm that they are going to place the order, state when you would like to receive it and ask about how much they will be ordering.
The next week you call and reconfirm, try to get an order in writing, and let them know you are ordering parts. Then you do as much pre-production as possible and move the schedule up, on other work. Situation Managed.
Accurately identifying difficult events as problems or situations will save you a lot of time and money. Taking decisive action will also help eliminate some of the frustrating events that constantly happen to retail manufacturers.
There is no point in wasting resources trying to "solve" a situation that can only be managed. There is also no point in wasting resources trying to "manage" a problem, when the correct solution will solve the problem, and make it go away.