Evolution in the forms of commerce changes habits, functions and puts more pressure on manufacturing companies
*By Waldir Bertolino
Just a few weeks ago, Nike announced growth of 23% in the final fiscal quarter driven by direct-to-consumer sales through its Nike Direct channel. Like the company, others have invested in the strategy of taking their products to the end user, a function that was previously reserved for distributors and retailers.
This is the case of Nestlé, which created the Empório Nestlé to serve consumers throughout the Southeast region; Belgo Bekaert, which became the only steel wire manufacturer to sell directly to consumers when it launched an online store offering products and solutions for agribusiness in August; as well as other sporting goods brands such as Wilson and Fiber.
For decades, the norm was mass production, the force behind modern efficiency and profitability. Then came the “made-to-order” and “engineer-to-order” models for highly complex industrial machinery and equipment. Then came the technology that helped manage the collaborative process, unique specifications, order change simplifying batches of one. From there, the change was fast and transformative, reaching consumer goods and operational innovations, such as on-demand assembly, modules, configuration tools according to specifications; and easy-to-program robotics for quick changes have turned traditional manufacturing on its head.
In addition, other factors contributed to reach the direct sales scenario that we have seen today, such as the advance of e-commerce; consumer convenience and brand intimacy with this audience; smart products, mobile technology, social networks and the ascendancy of digital natives, who ignore all other types of commerce.
But how can the industry “ride this wave” and optimize these trends?
Technology plays an important role in this shift to making direct sales to customers practical and profitable. Without the right IT infrastructure and resources, this would be an expensive and high-risk challenge. Manual systems, old technologies can compromise customer relationships. So here are seven factors that every manufacturing company needs to pay attention to before jumping into the world of direct sales.
Relations: customers with high expectations can bring opportunities to companies that commit to using all necessary resources, dedicating time and investing in technology. A company that excels in strengthening relationships and connected networks will do better than those that took a little longer to decide to invest in innovation. CRM solutions for customer engagement are important when it comes to customer lifecycle management.
Settings: to develop a customer-centric strategy, use a solution that helps you manage your product configuration. Some technologies guide the user through the design options, ensuring they are within the pre-established engineering limits. Then, a quote and a CAD graphic are automatically generated for the customer to visualize the final product. This helps save engineering and sales teams time by freeing them from the need to manually specify and quote for each custom order.
E-commerce: modern solutions also help manufacturing companies launch e-commerce programs. There are many purchasing programs, but the manufacturing company needs an e-commerce solution that can be integrated with the ERP solution, synchronizing order entry, inventory and backend and finances. It's as simple as clicking through to the website. To truly retain the online customer, it is necessary to dialogue, provide value by giving visibility to the products and the company and, above all, show the authentic desire to listen to the customer's needs.
Innovation: Being close to the consumer has several advantages, including immediate feedback for product innovation and development. Online shopping cart, interactive portals, active social networks that provide first-hand exposure, allow you to shorten the stages of product development.
Product lifecycle management (PLM): Manufacturing companies streamline new product development with PLM solutions that help track goals, milestones and communication at every stage of the product lifecycle, from start to finish.
Advanced warehouse management: Speed and accuracy are factors that impact the consumer experience. Therefore, it is necessary to invest in solutions to optimize warehouse management, to offer tenants a holistic view of the entire process, from product separation, storage, to delivery. This is a necessary measure to transform the warehouse into a strategic asset for the company, and not a cost center.
Support processes: The movement of direct sales to the customer carries some responsibility. Manufacturing companies have traditionally given their distributors and retailers the ability to engage directly with customers, maintain inventory, and be trusted advisors, providing an individual shopping experience.
By eliminating these stages, she needs to play this role. But all too often, the industry is not ready to build direct customer relationships, nor does it have the basics like a call center, a dispatch center designed to handle high volumes or returns from dissatisfied customers. Moving to selling directly to customers requires a general change in the company, with new operational processes and new departments.
* Waldir Bertolino, Infor Country Manager
Notice: The opinion presented in this article is the responsibility of its author and not of ABES - Brazilian Association of Software Companies
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