6 Biggest Mistakes When Selecting a Contract Manufacturer

PATTY RASMUSSEN| June 14, 2018
6 BIGGEST MISTAKES WHEN SELECTING A CONTRACT MANUFACTURER
Finding the right manufacturer for your project is tough. Do you stay in the U.S. or go overseas? Do you need to work with a design service team? How much is it all going to cost? It's cheaper in China, right? Can't I just find someone on Alibaba to do it all? We probably won't answer every question on your list, but we can tell you about the 6 biggest mistakes we've seen people make when looking for a contract manufacturer.

Spotlight

Frazer-Nash Manufacturing Ltd

A precision engineering and manufacturing company, based in Petersfield, Hampshire, Frazer-Nash has developed a reputation for technical innovation combined with high quality and good value. Our customer base is international and predominantly serves the food industry.

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Why Manufacturing Companies Must Consider Business Intelligence

Article | December 14, 2021

Do manufacturing businesses require Business Intelligence (BI)? The answer is YES. Manufacturing is one of the most data-intensive businesses, producing massive amounts of data ranging from supply chain management to shop floor scheduling, accounting to shipping and delivery, and more. All of this information would go to waste if not properly categorized and utilized. Scrutinizing and analyzing your data with business intelligence will help you become a more efficientand productive organization. Your organized data can show you where the gaps or inefficiencies are in your manufacturing process and help you fix it. Many companies simply are not willing to change or think they are done once they make a change. But the truth is technology, consumer demands, the way we work, human needs and much more are constantly changing. Michael Walton, Director, Industry Executive at Microsoft BI has the potential to improve the operations of an organization and transform it into an organized one. According to Finances Online research, more than 46% of organizations are already employing a BI tool as a significant part of their company strategy, and according to Dresner Advisory Services research, 8 in 10 manufacturers who use BI for analytics have seen it function successfully. How Manufacturing Operations Are Improving with Business Intelligence? As revealed by the BI statistics above, we can see that business intelligence is critical in manufacturing. To further illustrate how business intelligence supports the manufacturing industry, let's look at some of the business intelligence benefits that are making a difference in the manufacturing industry. Advances Operational Efficacy While modern enterprises create massive amounts of data, not all of this data is relevant. Today's business intelligence solutions take all of the data from your organization and transform it into an easily comprehensible and actionable format. It enables you to minimize or fix errors in real-time. Additionally, it helps you to forecast raw material demand and assess procedures along the supply chain to ensure maximum efficiency. Allows for the Analysis and Monitoring of Financial Operations Business intelligence solutions provide insight into sales, profit, and loss, raw material utilization and can usually assist you in optimizing resources to increase your return on investment. Understanding your cost-benefit analysis, BI enables you to manage production costs, monitor processes, and improve value chain management. Assists in the Management of Your Supply Chain Manufacturing companies engage with various carriers, handling these multiple processes can be complicated. BI enables manufacturing companies to have more accurate control over shipments, costs, and carrier performance by providing visibility into deliveries, freight expenditures, and general supplies. Contributes to the Reduction of Inventory Expenses and Errors Overstocks and out-of-stocks are substantial barriers to profitability. Business intelligence can assist you in tracking records over time and location while identifying issues such as product faults, inventory turnover, and margins for particular distributors. Determines the Efficiency of Equipment Several factors can cause inefficient production. For example, errors with equipment due to improper installation, maintenance, or frequent downtime can reduce production. So, to keep industrial operations running well, one must monitor these factors. Manufacturers can maintain their machines' health using data analytics and business intelligence. It provides real-time information about your production lines' status and streamlines production procedures. How Business Intelligence Helped SKF (SvenskaKullagerfabriken) to Efficiently Plan Their Future Manufacturing SKF is a key supplier of bearings, seals, mechatronics, and lubrication systems globally. The company posses its headquarter in Sweden and has distributors in over 130 countries. Due to SKF's extensive worldwide reach and product diversity, they constantly need to forecast market size and demand for their products to modify their future manufacturing. Generally, SKF experts developed and kept their forecasts in traditional and intricate excel files. However, the efforts of maintaining and reconciling disparate studies were excessively high. As a result, SKF used require days to generate a simple demand prediction. Later, SKF integrated its business data assets into a single system by utilizing business intelligence in production. Following that, they could swiftly begin sharing their data and insights across multiple divisions within their firm. They are now able to aggregate demand estimation fast and does not face cross-departmental issues about data integrity for the vast number of product varieties they manufacture. This intelligent data management enabled SKF to plan their future production operations efficiently. Final Words Business intelligence in manufacturing makes a big difference in the organization's entire operations. Given the benefits of business intelligence in manufacturing, a growing number of manufacturers are implementing it in their operations. According to Mordor Intelligence, Business Intelligence (BI) Market was worth USD 20.516 billion in 2020 and is anticipated to reach USD 40.50 billion by 2026, growing at a 12% compound annual growth rate throughout the forecast period (2021-2026). Hence, we may say that the business intelligence is crucial for manufacturing and is booming, thanks to its enormous potential and the numerous benefits it provides to various businesses. FAQ Why is business intelligence so important in manufacturing? Organization intelligence may assist businesses in making better decisions by presenting current and past data within the context of their business. Analysts can use business intelligence to give performance and competitive benchmarking data to help the firm run more smoothly and efficiently. What value does BI add to manufacturing? Business intelligence solutions provide insight into sales, profit, and loss, raw material utilization and can usually assist you in optimizing resources to increase your return on investment. Understanding your cost-benefit analysis enables you to manage production costs, monitor processes, and improve value chain management. What is business intelligence's key objective? Business intelligence is helpful to assist corporate leaders, business managers, and other operational employees in making more informed business

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How Manufacturing Digitalization Benefits Businesses in 2022

Article | December 14, 2021

The manufacturing industry has evolved to new heights of innovation, productivity, and excellence with digital transformation. Manufacturing digitalization has made operational procedures more skilled, accurate, and time-savvy. “Many companies simply are not willing to change or think they are done once they make a change. But the truth is technology; consumer demands, the way we work, human needs and much more are constantly changing.” Michael Walton, Director, Industry Executive (Manufacturing) at Microsoft With a CAGR of 19.48 percent between 2021 and 2026, the digital transformation in the manufacturing market is expected to reach USD 263.93 billion by 2026. Manufacturing plants adopt digital technology to improve, automate, and modernize processes as part of Industry 4.0. So, what are the key benefits of digitalization for manufacturers? This article will elaborate on the top five benefits of digital manufacturing transformation. How to Define Digital Manufacturing? Manufacturing digital transformation involves integrating digital technologies into processes and products to improve manufacturing efficiency and quality. Manufacturing's digital transformation aims to increase operational efficiency and reduce expenses. The digital transformation techniques ensure product quality. It also makes work more efficient, safe, and stress-free. What Is Included in Manufacturing Digitization (Industry 4.0)? Industry 4.0 is the digitalization of manufacturing. Cyber-physical systems, IoT, and cloud computing are current trends in manufacturing automation and data exchange. Connected devices, cloud computing power, and the modern emphasis of lean, efficient operations enable Industry 4.0 to construct advanced and innovative smart factories. Industry 4.0 includes design, sales, inventories, scheduling, quality, engineering, customer and field service. Five Benefits of Digital Transformation in Manufacturing Manufacturing organizations can benefit from digitalization in a variety of ways. It can help make the work more efficient, decentralized, and secure. It further creates new business opportunities and attracts new talent to the industry. Additionally, integrating products into a digital ecosystem increases their value and appeal. Let’s dig deeper into each of the five key benefits. Reduces Costs Technology is an invaluable companion in reducing the manufacturing company's expenses in the future. The incorporation of digital technology results in the transformation of procedures and the digitization of documents, resulting in overall process optimization. Therefore, a reduction in labor costs might be expected as a result of the elimination of unnecessary expenditures. Additionally, digitization enables businesses to assess and estimate expenses considerably more precisely, ensuring that budgets stay on track. Additionally, it eliminates andsubstitutes inefficient jobs within processes, significantly increasing their efficiency. This efficiency is translated into time savings, which results in a substantially more cost-effective manufacturing process. Decentralized Production Manufacturing digital transformation allows organizations to supervise manufacturing remotely, allowing production to continue uninterrupted. In rare cases like Covid-19, digitalized businesses have not had to cease or even slow down production. These systems can work without interruptions for much longer than any worker. Digitalization also boosts methodology flexibility and reactivity. For example, if a production plant has a problem, an automatic alert is generated, and the issue is resolved regardless of the day, time, or presence. Improved Operational Efficiency Smart product connectivity allows devices to connect and communicate with each other (M2M). This connectivity enables decentralized decision-making. Many duties no longer require an employee to be physically present. New manufacturing and production models minimize boring, risky activities while increasing accuracy, efficiency, and responsiveness. Transforming businesses through digital means making better decisions based on real-time data. Training, changes, and repairs are no longer issues due to reduced frequency and automation. New Business Opportunities New digital technologies enable the manufacture of previously unviable products and services, generating new revenue streams. Also, new services (innovation or reorientation) are launched considerably faster. Companies may utilize big data and AI to experiment, anticipate trends, and predict about new advancements. These technologies can help organizations become more eco-friendly and create products that are less detrimental to our environment. Attracts New Talent Professionals with fundamental talents in this complicated and disruptive environment are drawn to digitalizedorganizations that are up-to-date with trends and processes. Also, if the change is managed well, it will lead to higher profitability, increasing employee satisfaction. Human motivation, along with excellent digital technologies, will reflect in the company's production and profitability. Dusseldorf@Germany: The Deloitte Digital Factory The digital factory in Dusseldorf provides a flexible setting for innovative workshops and training, bringing together the old and new worlds of supply chain and industrial operations to provide a seamless experience. Specific use case examples, as well as the digital solutions sector, will motivate and encourage businesses to get on their digital transformation journeys, making use of the most up-to-date technologies in the process. Final Words Manufacturing digitalization has a lot to offer the industry, and many manufacturers are capitalizing on this new phase of the industrial revolution by incorporating cutting-edge technologies into manufacturing and business operations. As said previously, the benefits of digital transformation in the manufacturing business are increasing the importance of digitalization in the industry. Transform your traditional manufacturing operating processes with these new manufacturing trends and observe the results that other benefitting manufacturing businesses have achieved. FAQ Why is digitalization vital in manufacturing? Manufacturing process digitization improves overall business performance. But the results are seen across the factory. Digital transformation improves working conditions for employees and streamlines daily operations. How are digitization and digitalization different? Digitalization is a transformation of data and processes. Digitalization is the use of digital technologies to collect data, identify patterns, and make better business decisions. How digital technologies are applied in manufacturing? Digital manufacturing technologies enable the integration of systems and processes across all stages of production, from design to production and beyond.

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3 Sales-Driving Manufacturing Marketing Strategies

Article | December 28, 2021

Successful manufacturing marketing strategies are all you need to grow your business and make it visible in every way to your target customer group. Many manufacturers are now becoming vigilant towards B2B marketing and have started forming an individual marketing budget in their annual budgets. “We should quantify marketing to inform what we do – not to decide what we do.” – Rory Sutherland, Vice-Chairman, Ogily As per Statista, nearly half of B2B organizations said they’re planning to boost their content budget in the next year. As a result, B2B marketing for manufacturers must be redesigned and smartly strategized in order to be more effective and fruitful. This article will focus on the significant challenges manufacturers face in B2B marketing and how manufacturers use the three most sales-driven manufacturing marketing strategies. 4 Biggest Marketing Challenges in B2B & Manufacturing Develop Tailored Experiences You have a few seconds to capture the customer's interest. When done correctly, personalization may help. With persistent multi-channel marketing, you may strengthen your brand in target areas. Additionally, an account-based marketing approach enables you to focus on important clients while generating customized content for them. Integrate agile methods to test novel ideas across your business without demanding extensive approval. Further, crowdsourced content, B2B communities, and advocate marketing should be prioritized. Convert Leads into Sales With the right strategy, you may generate more high-quality leads. Relate marketing expenditures to sales and demonstrate the impact of marketing on the bottom line. Align marketing and sales by focusing on the customer's purchasing journey. Increase the quality of your leads, transparency, and collaboration with your partners. Measure Marketing Performance Marketers will be asked to demonstrate ROI and forecast future actions. Proactively calculate the MROI (Marketing Return on Investment) on marketing and sales investments. Determine how to get the most out of your marketing budget by doing more with less. Focus on making data-driven judgments rather than relying on guesswork. Maximize the Marketing Tech Investment As a manufacturer, you have access to a number of tools and resources. You will need to collaborate with your technical team to integrate it. Collaborate with your IT team to effectively adapt, innovate, and apply technology. By integrating current technologies, you can automate and improve marketing campaigns more efficiently. “Marketing professionals have to act as conveners and connect the dots so that there is alignment between stakeholders like sales and operation teams and executive leadership on what products and services will drive growth in any given quarter." – Maliha Aqeel, Director of Global Communication, Fix Network World in conversation with Media7 3 Best B2B Marketing Strategies for Manufacturers That Drive Sales Consider Purchasing an E-commerce Platform Consumer behavior is driving manufacturing transformation, particularly the shift to digital channels. Manufacturers who still handle consumers solely by phone, fax, or email risk losing their loyalty as their worlds and tastes grow increasingly digital. Manufacturers have clearly acknowledged the digital transition in 2021. This year's Manufacturing & E-Commerce Benchmark Report says 98% of manufacturers have, or plan to have, an e-commerce strategy. Moreover, 42% of manufacturers who engaged in e-commerce and digital said it strengthened client connections. How does e-commerce benefit manufacturers? Distributes a customized catalog to your customers Ascertains those spare components are visible It allows customers to customize items online Sells your whole range online Increases your consumer base Focus on the User Experience and Interface (UX/UI) The term "User Experience" refers to all elements of an end user's engagement with a business, its goods, and services. The purpose of user experience is to establish a connection between company objectives and user demands. An engaging user interface or user experience keeps users engaged and consumers pleased. Additionally, it enhances the rate of return on investment (ROI). That is why it is necessary to maintain great UI/UX quality. How does UX/UI benefit manufacturers? Increases the number of conversions Support is less expensive It helps with SEO Brand loyalty is increased Embrace an Omni-channel Strategy Millennials represent 73% of those making buying decisions for companies. Part of this means offering a seamless, consistent shopping experience across a variety of channels. With the right CRM solution, you'll eliminate a lot of the legwork associated with targeting specific buyers. Manufacturers can leverage omni-channel to increase availability, promote sales and traffic, and connect digital touchpoints. How does Omni-channel benefit manufacturers? Supports marketers in developing trust Enhances the user experience with the brand It clarifies a complex subject Final Words Developing a successful manufacturing marketing plan is all that is required to set your organization apart from the competition. Consider thinking outside of the box and developing innovative manufacturing marketing strategies that will surprise your targeted customers and keep you on their minds at all times. B2B marketing for manufacturers has long been a priority, since manufacturers frequently overlook this aspect of their business when they should. Utilize the above-mentioned sales-driven manufacturing marketing methods to assist your organization in growing and reaching the maximum range of target prospects. FAQ What is the goal of business-to-business marketing? B2B marketing's goal is to familiarize other businesses with your brand name and the value of your product or service in order to convert them into clients. How can manufacturers energize their market presence? Manufacturers may boost their market presence by advertising on various social media platforms, opting for native language ads, and partnering with influencers to promote their products or services.

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Rex Moore Proves Project Business Automation Provides Predictive and Proactive Resource Requirements

Article | July 28, 2021

Rex Moore Group, Inc. is a Top50 electrical contractor delivering unmatched integrated electrical solutions. As an early adopter of Lean manufacturing principles, Rex Moore has created a company-wide culture of continuous improvement that drives significant value to their clients. The firm contracts and performs both design/build and bid work for all electrical, telecommunications, and integrated systems market segments. Rex Moore has a full-service maintenance department to cover emergency and routine requirements for all facilities, whether an existing facility or one that has been recently completed by the company. The ability to negotiate and competitively bid various forms of contracts including lump-sum, fixed fee, hourly rate, and cost-plus work as a prime contractor, subcontractor, or joint venture is enhanced with Project Business Automation (PBA) from Adeaca. This solution permits the company to propose work only if they are in a position to be competitive in the marketplace and provide excellent service with fair compensation. Rex Moore used Adeaca PBA as a construction management software for builders and contractors to integrate and facilitate its business processes in its ERP system. Together with Microsoft Dynamics, PBA integrated processes across the company on a single end-to-end platform. This allowed the company to replace 15 different applications with a single comprehensive system, eliminating the costs and inefficiencies associated with multiple systems and silos of information.

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Spotlight

Frazer-Nash Manufacturing Ltd

A precision engineering and manufacturing company, based in Petersfield, Hampshire, Frazer-Nash has developed a reputation for technical innovation combined with high quality and good value. Our customer base is international and predominantly serves the food industry.

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