Imagine being able to effectively manage your production processes, product data, and sales operations without being physically present at the factory. Digital transformation in manufacturing has evolved from a long-term strategic initiative into a key driver of business growth. As product data becomes more complex, time-to-market expectations increase, omnichannel sales expand, and customer demands continue to evolve, manufacturers are increasingly investing in e-commerce platforms, PIM, ERP, CRM, and cloud-based solutions. In this article, we explore the eight most common challenges faced by manufacturing companies and the digital technologies that help solve them.
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 article, we explore the key challenges facing modern manufacturing companies, explain which technologies support the digitalization of business processes, discuss when it makes sense to implement PIM, ERP, CRM, or e-commerce platforms, and show where to begin your digital transformation to achieve measurable business benefits. 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.
An e-commerce platform combined with a D2C (Direct-to-Consumer) model gives manufacturers greater control over customer relationships, purchasing data, and the way their products and brand are presented across digital channels.
Developing new sales channels is one part of a broader digital transformation. You can learn more about this in our article “B2B digitalization: Why should you move sales online?”.
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.
Cloud-based solutions give employees secure access to the same systems and data regardless of where they work, supporting business continuity and enabling effective collaboration across teams.
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.
A PIM system becomes the central source of product information, enabling production, sales, marketing, and digital channels to work with the same accurate, consistent, and up-to-date data.
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. If you want to better understand when a PIM system delivers the greatest value for manufacturers and distributors, read our article “PIM for manufacturers and distributors”.
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.
The combination of automation, PLM, and digital process management helps reduce time-to-market, enabling products to move more efficiently from the design phase through to commercial launch.
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.
ERP and CRM systems connect operational processes with customer information, enabling manufacturers to support different business models, commercial terms, and the specific requirements of individual customer segments.
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.
CRM systems, self-service portals, knowledge bases, and help desk tools create a digital after-sales support environment that provides quick access to customer history and enables faster, more efficient resolution of service requests.
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.
International expansion is best supported by combining e-commerce, PIM, CRM, and ERP systems, allowing manufacturers to manage product offerings, product data, customer relationships, and operational processes consistently across multiple markets.
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.
Automation, predictive maintenance, and digital inventory management help reduce costs through better resource utilization, less downtime, and fewer manual operations.
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. Artificial intelligence is also playing an increasingly important role in process automation. We explore practical examples of how it can be used in our article “Top 7 ideas to use AI in eCommerce”.
- 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.
Insight from Tandemite implementations
A good example of how digitalization can transform a manufacturing organization is Tandemite’s project for ZARYS. The implementation combined SAP ERP, Pimcore PIM, and Shopware, showing how centralized product data and integrated systems can support more efficient offer management and sales growth.
„The ZARYS project shows how, as a product catalogue grows, the pace of work across the entire organization becomes increasingly important. When data, sales, and e-commerce operate within one consistent ecosystem, the company can expand its offer much faster and with greater predictability.” - Maciej Pałubicki, CEO, Tandemite
| If you... | Consider starting with... |
|---|---|
| manage a large product catalogue | PIM |
| want to grow sales | e-commerce |
| manage manufacturing processes | ERP |
| want to improve customer service | CRM |
| plan to expand internationally | PIM + e-commerce |
Is your company ready for digitalization?
If several of the points below describe your organization’s current situation, it may be time to consider the next stage of your digital transformation:
☐ product data is managed centrally and is accessible to all relevant teams,
☐ the company is growing online sales or planning to launch new digital channels,
☐ ERP supports key operational processes and data exchange,
☐ CRM organizes customer relationships and interaction history,
☐ repetitive tasks are automated,
☐ the organization is expanding into international markets,
☐ products and offers are published and managed across multiple channels,
☐ employees have secure access to systems and data regardless of location.
The more of these areas are already well organized, the easier it becomes to develop further digital initiatives. If several still require improvement, they can provide a useful starting point for planning the next stage of your transformation.
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.
FAQ
When should a manufacturing company start digitalization?
Digitalization is worth considering when the growing volume of data, products, or processes begins to limit further business development. Common signs include an increasing number of manual operations, inconsistent product data, longer time-to-market, and expansion into multiple sales channels or new markets.
Which processes do manufacturers most commonly digitalize?
Manufacturing companies most commonly digitalize product information management, production planning, order processing, sales, customer relationship management, and warehouse and supply chain processes. In many organizations, automation also covers quality control, reporting, and after-sales service.
How should a manufacturing company prepare for digital transformation?
The best starting point is to analyze existing processes, data sources, and the areas that generate the greatest delays or the highest number of errors. Based on this assessment, the company can select technologies such as an e-commerce platform, PIM, ERP, or CRM and plan the next stages of implementation.
How can you measure the results of digitalization in manufacturing?
The impact of digital transformation can be measured through shorter time-to-market, fewer product data errors, lower operating costs, increased online sales, and improved team efficiency. The right metrics should reflect the specific processes and business objectives addressed by the digitalization initiative.
Which areas of digitalization can deliver the fastest return on investment?
In many manufacturing companies, the first benefits come from improving product data management, automating repetitive processes, and implementing tools that support sales and customer service. These improvements can help organizations expand their product offering faster, reduce errors, and manage additional sales channels more efficiently.
