Hi y'all,

I, too, am concerned about this growing trend.  Seems there is a subtle
effort on the customer side of the business relationship to push part
of their internal operation onto the vendor.  Around here, I've noticed
similar activities are increasing such as the work we are doing so that
one customer can load their new computer systems.  Traditionally, loading a
computer systems has been performed by the owners of the computer
not the owners' vendors.  From my perspective, by agreeing to these types
of activities, we are are decreasing our customers' operating expenses while
increasing ours.  By doing so, are we really wanting to get into another
business besides the manufacture and sale of industrial tooling?

I feel that it is becoming more and more important for us to develop
the internal ability to measure the total cost of business/sales
for those customers insisting that we support their internal operations.
No longer is it wise to only consider sales margin when evaluating
a business relationship rather we need to look at the total cost
of the relationship verses the income the relationship provides.

(Of course on the flip-side, have you taken a good look for opportunities
to push some of your operating expenses onto your vendors? :-)

Chip Dorman
Greenfield Industries/
Kennametal Inc.