I once worked with a manufacturer who was struggling to maintain profitability on large custom projects. They had a habit of agreeing to mid-project changes—modifying designs, shifting timelines, etc.—without much oversight. It seemed harmless. After all, they were just trying to keep customers happy.
But those “quick adjustments” came with hidden costs. Production delays, overtime hours, and supply chain chaos became routine. This didn’t exactly result in the strongest customer relationships, as you can imagine.
And, each untracked change chipped away at their margins until the project wasn’t profitable anymore.
How We Solved the Problem
That’s when they brought us in. Together, we built a mandated Change Order Process. It wasn’t complicated, but it made a world of difference. Every change required:
- Proper documentation
- Clear communication
- Approval from key stakeholders
The Results?
- Scope creep stopped
- Margins stabilized
- Projects were delivered on time
- Customers respected the professionalism of their process
The Reality of Change Orders in Manufacturing & Distribution
The bottom line is that Change Orders are inevitable in manufacturing and distribution (as well as service-based businesses). Customers will always have last-minute requests. But without a process in place, you’re gambling with your bottom line.
What a Proper Change Order Process Looks Like
A strong Change Order Process isn’t about saying no to customers—it’s about saying yes with clarity, control, and fairness. Here’s what it should include:
- A formal request system for documenting all change requests
- Defined approval steps so key stakeholders are aligned
- Clear cost implications for tracking profitability
- Automated notifications to ensure nothing gets overlooked
- Audit trails for accountability and transparency
Why It Matters
If you’re in this industry and finding that small changes are causing big headaches, now’s the time to rethink how you manage them. A bit of structure goes a long way toward protecting your margins and strengthening your customer relationships.
At SalesNOW, we help our clients build and manage Change Order Processes every day. Because in business, predictability means profitability.
