What if you could address your biggest manufacturing challenges without setting foot in the factory? Whether you’re producing consumer goods, machinery, or electronics, staying competitive means embracing more than just traditional methods. Digital tools can bring much-needed efficiency to your current processes.
As data increases, the pressure to deliver new products grows, and remote work becomes the norm, the way manufacturers operate has fundamentally changed.
In this blog post, we'll explore these key challenges for manufacturers and discuss how digital transformation can provide the solutions needed to overcome them. Be the first to know.
1. The need to reach customers directly
Manufacturers typically relied on a network of distributors, wholesalers, and retailers, to get their products into the hands of end consumers. But with digital advancements, they are now rethinking their sales strategies.
When manufacturers sell through intermediaries, they often lose control over how their products are marketed and represented. They also miss out on valuable insights into customer behavior and purchasing patterns which are crucial for making better decisions on product development, marketing, and service upgrades.
Managing the entire buying process, from marketing to sales to after-sales support, could help them provide a more uniform and satisfying customer experience.
Additionally, today’s consumers look for greater transparency and want to engage directly with brands, whether it's to ask questions, provide feedback, or make a purchase. They expect a more personalized touch. This drives the need for new sales channels.
How digital solutions help
- Manufacturers can take advantage of online marketplaces or e-commerce platforms (e.g. Shopware or Magento/Adobe Commerce) to connect with buyers and sell their products directly. By establishing an online store, they bypass traditional middlemen. This strategy helps them increase sales and build better relationships by listening to customer feedback.
- Direct-to-consumer platforms (D2C), selling products via manufacturers’ online channels or physical locations, provide full control over brand and pricing.
2. The need for being online to access work platforms and data
With the shift to remote work, especially after the global pandemic, many manufacturing companies have employees who work from different locations, including home offices. To keep operations running smoothly and collaborate effectively, these employees need access to the same work platforms and data they would use if they were on-site.
How digital solutions help
- Investing in robust IT infrastructure, including secure cloud solutions, is key to overcoming this challenge. Cloud-based systems and digital tools ensure that all team members can access the necessary data and platforms from anywhere with an internet connection. This means employees can stay connected and continue to work efficiently, whether they’re in the office, on the factory floor, or working remotely.
3. The need for consistent product data
In the manufacturing industry, product data refers to all the information related to a product, e.g. its specifications, materials, or usage guidelines. This data is critical to nearly every aspect of manufacturing, from design and production to sales and customer support.
But when this data is inconsistent and inaccurate across the company, it can cause a range of problems such as defective products, delays, and increased production costs. This challenge is common in manufacturing due to the large volumes of data involved.
Plus, many industries have strict regulations regarding product information. Consistent data helps manufacturers stay compliant with these standards, avoiding legal issues and potential fines.
How digital solutions help
- Using digital solutions such as PIM systems (Product Information Management) can streamline and unify product data, so that everyone, from production to sales, accesses the correct information. Instead of having data scattered across different systems or departments, PIM consolidates everything in one place.
Any updates are reflected instantly in all manufacturer’s channels, reducing errors and helping ensure that the final product aligns with what customers expect.
PIM systems, like Akeneo or Pimcore, also include tools for validating product data, helping to catch and correct errors before they cause problems.
Massive amounts of data can be overwhelming if not properly managed. We're here to assist you in organizing and modeling product-related data, so you can easily understand it and make better decisions.
4. The need for faster Time-to-Market
Manufacturers are under constant pressure to bring new products from the concept stage to the market – known as Time-to-Market (TTM). A faster TTM allows companies to capitalize on new opportunities, whether it’s a new technology, material, or consumer trend. However, traditional manufacturing processes can be slow, making it difficult to keep up with market demands.
If a manufacturer is slow to introduce new products, customers may turn to competitors who can meet their needs faster. Also, the longer a product takes to develop, the higher the risk that it may no longer meet market demands by the time it’s ready.
How digital solutions help
- Digital tools are able to streamline various stages of manufacturing processes, from initial design to final production. They automate repetitive and time-consuming tasks, such as production scheduling, quality checks, and supply chain management.
For instance, instead of creating physical prototypes, manufacturers can use simulation and prototyping tools to test and refine their products virtually before moving to full-scale production. This speeds up the development process by identifying and fixing issues early on.
- PLM software (Product Lifecycle Management) integrates all aspects of a product’s lifecycle – from design to production and eventually, disposal. By implementing PLM, manufacturers can manage product data and processes in a coordinated way, aligning each stage to reduce delays and quicken the market launch.
5. The need to align data and business processes with specialized requirements of different customer groups
Manufacturers often serve a wide range of customers, ranging from individual consumers to large institutions and specialized professionals. Each of these customer segments has unique ways of doing business and requirements when it comes to the products they purchase. This means that your systems need to be flexible enough to handle different types of data and operations.
For example, one customer needs products delivered faster while another requires custom features. Failing to adapt to these needs can result in customer dissatisfaction, lost business, and a damaged reputation.
How digital solutions help
- ERP systems (Enterprise Resource Planning) offer the flexibility to be adjusted for the unique demands of various customer bases. With these digital solutions, manufacturers can keep track of orders, monitor production, and coordinate with suppliers more efficiently. By customizing workflows and data management within the ERP, they are able to meet the demands of all their clients, no matter how varied they are.
- Manufacturers can benefit from CRM systems (Customer Relationship Management) by tracking and analyzing interactions and data at all stages of the customer lifecycle. This helps them understand the unique needs of their audience and offer services tailored to those needs. Personalizing services in this way can increase customer satisfaction and promote lasting loyalty.
6. The need for effective after-sales support
In many industries, products can be quite similar, and it’s the after-sales service that sets companies apart. Exceptional after-sales support can be a key differentiator that gives you an edge over competitors who may not offer the same level of service. However, managing this support effectively can be complex, and requires coordination, transparency, and the ability to address customer issues promptly.
How digital solutions help
- With a CRM system, customer details such as previous interactions and purchase history are organized in one place. This makes it easier for support teams to quickly access relevant details and offer personalized service.
- Using customer service platforms like chatbots and help desks makes it easier for customers to find the help they need. They let manufacturers track issues, assist in troubleshooting, and ensure that customers feel supported, even after the sale is complete. Alternatively you might consider implementing self-service portals and online knowledge bases that allow customers to independently resolve their issues, taking the pressure off support teams. They offer easily navigable resources like FAQs, instructional videos, and troubleshooting tips, accessible at any time.
7. The need for internationalization and borderless operations
By entering multiple markets, manufacturers avoid relying too much on one area and gain an edge over local competitors. It also helps increase sales and diversify revenue streams, especially in regions where demand for their products may be higher than in their home country.
The expansion also comes with difficulties, such as navigating different regulations, languages, currencies and market needs. This complexity can be challenging without the right tools in place.
How digital solutions help
- E-commerce platforms and CRM systems give manufacturers the ability to engage with customers around the world. They make it possible to provide localized content, handle multiple languages, and offer region-specific customer service.
- Real-time data access and easy communication across countries and time zones are possible with cloud-based ERP systems, which help companies manage global supply chains, monitor production, and allocate resources more efficiently. ERP can be configured to handle currency conversions and calculate taxes according to the local laws of each country where a manufacturer operates. This simplifies the financial aspects of doing business internationally.
- For manufacturers doing business in multiple countries, a PIM system is particularly helpful. It ensures that product data remains consistent and accurate in every region, which is critical when dealing with different languages, units of measurement, and regulatory requirements.
8. The need to reduce costs
Everyone wants to save money on production, but doing it without affecting quality can be challenging…
… Especially if you’re using outdated processes and tools, which can eat into profits.
Streamlining inefficient processes, whether due to outdated machinery, human error, or lack of data, is essential for maintaining a lean operation.
How digital solutions help
- By adopting automation, manufacturers can lessen their dependence on manual labor, leading to better cost management. Digital tools can perform routine tasks, freeing up human workers for more complex jobs. This shift helps reduce labor costs, improves efficiency, and minimize the risk of errors.
- Traditional maintenance schedules often lead to unnecessary downtime or unexpected breakdowns, both of which are costly. Digital tools that offer predictive maintenance use data analytics to predict when machines need servicing, reducing downtime and repair costs.
- Inventory management software can help manufacturers maintain optimal inventory levels. This reduces the costs associated with overstocking, such as storage and potential waste, and minimizes the risk of stockouts.
Conclusion: Embracing digital transformation to overcome manufacturers’ challenges
The challenges facing manufacturers today are significant, but they are not insurmountable. Imagine how many manufacturing inefficiencies you could eliminate with the right digital tools.
By adopting digital solutions, you can:
- reach customers directly,
- manage platforms and data online,
- maintain consistent product information,
- get new products to market quicker,
- meet the specific requirements of different customer groups,
- deliver reliable after-sales service,
- expand into new markets,
- cut down on expenses.
Partner with us for a seamless digital transformation. We focus on bringing quick returns on investment, enabling you to reinvest the savings in further digital transformation initiatives.
By working with a trusted digital solutions provider, you can ensure a smooth transition, minimize risks, and achieve your goals faster. Just because a software is widely used, doesn’t mean it’s effective for your situation. We start with a thorough review of your current processes and identify areas where digital solutions can add the most value. Find out how to start small and scale smart.
PS: We look forward to driving your success, as we have for Dexis Belgium, Zarys, Canpol, and many others manufacturers.
