Zakład Wyrobów Metalowych Dojnikowscy (ZWM) is a Polish manufacturing SME. ZWM is a producer of metal products, particularly steel products, and offers a wide range of services associated with these products. Many of the company’s orders feed into large scale projects for private and public clients such as municipalities. While ZWM remains a family-run business, thanks to the introduction of a wide range of services, ZWM is now one of the largest companies in eastern Europe.
ZWM realised that in order to maintain and increase its customer base, it needed to offer more than the mere production of metal goods. Early on, ZWM started believing that its clients will be more satisfied if the company can offer them a wide range of services, from the initial design, delivery and installation, to repair and maintenance services after purchase.
ZWM has been gradually expanding its production of services. The expansion of the service portfolio has largely depended on the diversification of the company’s production. Beginning with the manufacturing of gates and the subsequent introduction of other steel products for the construction sector, ZWM started to offer installation and delivery services as clients could not transport the goods themselves. ZMW then began to offer design and consulting services, over time increasing their range and complexity. ZWM now also provides repair and maintenance services. A differentiating detail is that all services offered by ZWM are also offered independently from the company’s manufacturing offer. For example, a client may need ZWM to power coat a product that was not purchased from ZWM.
ZWM choose to implement a selective, incremental and integrated process for its service offer, thus building on the company’s already-existing technological capacities and resources.
The growing range of products and services also included the building of a wider network of clients and suppliers. The diversification of ZWM business activities also served as a risk mitigation mechanism since the company’s reliance on one specific type of clients or suppliers decreased. The wider network of partners now also ensures stability of supplies and contributes to the development of mutually beneficial partnerships.
The owners of ZWM realised that servitisation is welcomed by its clients due to the convenience of having a one-stop shop, and the compatibility of the service offer with manufacturing production and cost reduction. Due to the positive effect of the integration of services on the company’s performance and the relationships with the clients, ZWM management believes that servitisation is a key to the company’s current and future success.
The Results and Benefits
ZWM is an example of how the role of services within manufacturing production is changing and growing in importance. This servitisation process has helped ZWM improve the quality of production and the overall productivity of its business operations, through the acquisition of modern technologies for service delivery, and a better understanding of the market needs thanks to a closer interaction with clients. Service integration has also helped lower the market risk associated with relying on one sector market trend. The integration of services has also had a positive effect on clients and partner companies’ operations, as they can enjoy an easier access to a greater variety of products-services combination and cost reduction due to the availability of a one-stop shop for their needs.