The essential goal of the guaranteed availability business model in the industrial gas sector is to ensure product availability and quality 24×7.
By ensuring the guaranteed availability of products, industrial gas suppliers become trustful partners of their clients.
From Traditional Industrial Gas Supplier to the Industrial Gas Service Provider
Industrial gas companies who want to drive supply chain leadership transfer the traditional supply-customer relationships.
In the buyer: seller business model, the industrial gas supplier’s profitability is a function of the volumes sold.
The more gases sold, the higher the revenue for the supplier.
Meanwhile, the buyer has the opposite goal to reduce costs or the amount of industrial gas purchased.
These conflicting goals generate a zero-sum game, where no-one wins.
The Business Innovation Model: Guaranteed Availability
The guaranteed availability business model creates a win: win situation for the supplier and the customer.
Industrial gas suppliers become industrial gas management providers for successfully delivering and managing guaranteed availability of industrial gases. Thus, the industrial gas management providers profitability is based on better performance, not selling more molecules.
By aligning the incentives of industrial gas suppliers and their customers, both can achieve bottom-line benefits via reduced industrial gas use, costs and waste.
The new business model reflects the mission of the industrial gas industry entirely:
“Solve customers problems, help them increase profitability, safety, health and environment of their entire supply chain.”
Executing the Innovative Business Model: Guaranteed Availability
To be successful, industrial gas suppliers need to offer the business model guaranteed availability.
Their strategic goal is to build credibility, trust and active, long-term business relationships with their high priority manufacturing customers.
Business Map: Rapid Business Innovation – Industrial Gases – Guaranteed Availability
Checklist : Business Model: Guaranteed Availability
Apply this simple checklist to find out the readiness of your organization for providing the Guaranteed Availability Business Model
- Can we offer this business model
- Will we be able to manage the business model reliably well
- How can we limit the downside risk of technical and business failures of the business system
- Could we deal with the potential financial and image damage if we were to fail to deliver on our guaranteed availability promise
- Other issues