Every industry is facing tremendous challenges in the domain of management, customer support and product development. Not only that, the competition from other related industries has enabled entrepreneurs to come up with drastic solutions in order to expand their businesses among the masses. Manufacturing sector is also tackling the issues of attracting attention from consumers and more sales.
The competition for manufacturing industries are emphasized on those areas where their existing business model operates around conventional methods, that includes retail, sales, employee management, procurement management, and accounts handling. The executives and managerial level employees are putting their pressure over traditional methods to have better results and meet the expectations in these fast growing economic times. Some features that are essential in construction sector have started to change from its original roots into a more computerized manner; such as architectural design. But the changes adopted are scarce as compared to the overwhelming industry which has areas to cater such as handling multiple sales channels from suppliers to manufacturers, adopt fast paces supply chain management system, and development cycle evaluation from start to finish. It is now the obligatory to evaluate how technology can help us in improving the traditional systems and produce confidence among the manufacturing industry experts.
In this blog, we will examine what challenges is faced by manufacturers in general and how technology comes into assisting them. This article also explains the digital transformation of manufacturing industry and understands what does it general means.
Reduce the product development cycles
It has been observed that new products are facing much more difficulty to enter into the market in recent years due to the fact of exceeding amount establishments of digital marketing and e-commerce platform. The only approach for new product categories to be introduced into the market is through adopting direct-to-consumer marketing. This method contains the tendency to produce friction caused by retailer’s competition and often leads to bankruptcy or loss of capital for new upstart companies. But how the new product establishes a good reputation by various big retailers and manufacturers, who are providing platforms to newly formed companies those, are looking to enter the big ocean of marketplace. The platforms which are easily accessible by general public are the ones where recent products are showcased such as evolving marketplaces, e-commerce and social media.
Those firms and establishments which existed for years are also taking notice of such methods. In order to attain the help of technology, they have being to invest on creating new products by increasing the budget on producing new goods into the market in much number through investing more in product R&D and cutting development duration in order to significantly increase the competition. This medium is indeed a challenge of today’s times for small and large manufacturers both as products tends to operate on much larger scale through sophisticated supply chain mechanisms and global operation tactics for large companies.
So how a product development cycle can be reduced? Here technology comes into action. Initially, the product development model accommodates a department of customer feedback within their product design. Through digital mediums such a website or social media, customers assist the product development teams to provide valuable customer feedbacks over their nature of upcoming product or on their brand as a whole. This method helps the development strategies to analysis before creating the actual product that what feature will make their product more successful without wasting resources on producing below par goods which won’t make greater impact on the market. As for second part, the development teams can benefit from industry grade software and tools to increase the speed and adaptability on their methods. These tools will assist on design, testing and simulations based on their product nature, thus reducing the development time cycle while improving the quality control through integrating technology into the mix.
Solid requirement for customization
Some time back, if you required designing custom furniture or a tailored shirt, you would have to visit the designer for it or a tailor to ask them specifically for their services. This follows with a lengthy process which includes additional expenses and longer time to wait for your customized order. in other words, if you could just go and purchased off the-shelf goods from the market, comparatively the time would be feasible. In today’s time, manufacturing industries are beginning to adopt practices that advance the customized goods with better rates and time required to make them. Many of these companies are introducing build-to-order method for various categories and products, which require lesser time to develop in much affordable rates, which was once proven to be impossible to advice.
The fast growing consumer needs has enabled many manufactures to undergo structural improvements which can handle quick orders and meet customers’ expectations. For the upstart industry who has just entered into the market, fortunately, software’s and tools are assisting companies through every step of the way, from managing orders, to controlling production lifecycles. It is to understand the build-to-order strategy is not feasible for every industry, but it’s better to know that such software will help boost the demands of today fast paced market.
Improved cost management solutions
The biggest concern faced by almost all manufacturers is regarding cost management. Whether you are looking to manage production cost from going above your predicted amount, or deducing unnecessary waste from your overhead, below par cost management can quickly destroy your manufacturing company. It is highly recommended in today hyper-competitive market to adopt strop cost control management in order to stay active as a manufacturer.
Through the help of technology this area is pretty much covered entirely. Using supply chain software’s and tools than has the tendency to record incomings and outgoings of materials and products to register overall expenditure for your manufacturing cycle and making sure that you are getting profits along the way. Not only for cost effectiveness, but these tools helps your industry to safe from unnecessary time taking roadmaps and allowing you to prevent waste from development lifecycle.
Every change is made with a great heart, so it’s likely that many executives and manufacturers will face challenges to adopt new technologies into their system, but reevaluation of the losses and improving the business model is the part of every business. The good thing about Digital transformation is that it doesn’t mean to completely replace your methods over the top, but to add improvements in parallel using technology. According to the 2016 World Economic Forum in Davos, CEO of Accenture Pierre Nanterme has conducted a survey which concludes that over half of Fortune 500 companies have just vanished from thin air since 200, due to technology non-adaptation. He added that by 2017, almost two-third of Global 2000 CEOs will adopt digital transformation strategies into their business model.
SleekDigital is a Mobile App Development Agency in Singapore that helps businesses transform digitally. We also offer digital transformation consultation and general digital consultation for companies who are looking for suggestions of different systems to be integrated. This is more of companies who lack a digital consultant to propose technologies. Arrange a digital consultation with us today!