7 Strategic Benefits of E-commerce for the Manufacturing Industry

Bhagyashri Kambale | February 14, 2022 | 676 views
7 STRATEGIC BENEFITS OF E-COMMERCE FOR
B2B e-commerce for manufacturers is seeing resurgence in the manufacturing business. Today's manufacturers are moving away from old business models and heading towards digital ones.

“E-commerce isn’t the cherry on the cake, it’s the new cake”

- Jean Paul Ago CEO L’Oreal

The Manufacturing & E-commerce Benchmark Report says,
  • 98% of manufacturers have, or plan to have, an e-commerce strategy.
  • 42% of manufacturers who are engaged in e-commerce and digitalization said it has improved customer relationships.

The statistics above shed light on the manufacturing industry's development. We must acknowledge that our physical factory is transitioning into an e-commerce factory. B2B businesses are taking advantage of the convenience of browsing online product catalogs without having to go to the site.

Why Is E-commerce for Industrial Products Important?

Consumer behavior is driving transformation in the manufacturing space, particularly with the shift to digital channels. Manufacturers who still handle consumers solely by phone, fax, or email run the risk of losing their loyal consumer group. This is because, in recent years, their worlds and preferences have grown increasingly digital.

In the Manufacturing & E-commerce Benchmark Report, manufacturers claimed that internet sales accounted for over half of their total income. So, manufacturers have come a long way since their earlier days. According to Digital Commerce 360, 80% still relied on their internal sales force to boost revenue. But we all know that manufacturers can do more to meet B2B customer needs.

Today's B2B clients expect self-service options in addition to transactional websites. These buyers want reliable information from your web business, whether it is inventory levels, product specifications, order history, or their personal negotiated discounts. It should be available anytime and wherever customers desire.

“You can’t wait for customers to come to you. You have to figure out where they are, go there and bring them back to your store”

- Paul Graham, Y COMBINATOR

The key reasons for the demand for e-commerce for industrial products are
  • 75% of B2B goods are purchased online.
  • 1 in 3 buyers pick a vendor on the basis of its online ordering, payment, tracking, and return capabilities.

B2B Manufacturing E-commerce Benefits


Efficient Operations

A B2B e-commerce platform helps manufacturers across sectors to increase productivity, reduce costs, and simplify procedures. A web-based manufacturing e-commerce catalog significantly reduces the cost of printing product catalogs. It automates time-consuming operations such as catalog relevance maintenance, data cross-checking, and human data entry. It can connect with ERP, CRM, PIM, and other systems, thus streamlining a lot of back-end operations.

Order Accuracy

Manufacturers have to cope with enormous orders and diverse customers. Fortunately, many B2B e-commerce platforms allow for customized pricing lists and RFQ procedures. Personalized and smooth ordering is possible with configurable back-office operations. It eliminates mistakes and saves time by processing orders quickly.

Better Analytics

Online consumer data helps manufacturers grow their businesses. An e-commerce platform gathers data about purchases, sales, refunds, shipping, and more. This data helps to forecast trends and optimize inventory and delivery. This information can help product developers make their products better, sales reps find customers, and marketing teams find customers.

Unlock Revenue Sources

While some businesses were already in the process of shifting online, the pandemic has accelerated the digitization process and showed that shifting online is the only option to counteract declining physical revenues. An internet store brings new customers to traditional businesses. A solid SEO strategy and a mobile-friendly shop may help them establish a large client base and sell more to them.

Passive Earnings

A well-designed manufacturing e-commerce site will automate back-office tasks and allow users to self-serve their orders. Automation relieves salesmen and increases operational hours. As a result, manufacturers may sell 24/7 and personnel can explore other revenue-generating options.

Gain Brand Awareness

E-commerce is a great marketing tool for manufacturers. They can help with search engine visibility, especially as B2B customers increasingly use Google to study firms. This could help people who make and sell things, as well as distributors and retailers who work with them.

Expand to New Markets

Vertical, market, and geographic expansion become simple with the proper e-commerce solution. Flexible solutions let businesses grow into new areas and respond to opportunities faster. Aside from B2B sales, several manufacturers choose B2B2C sales or direct-to-consumer sales (D2C). As manufacturers diversify their companies, these tendencies gain traction.

Final Word

Manufacturing e-commerce is more than just online shopping and selling. It's not simply about interacting with clients on the Internet. “E-commerce is a business tool that may help your company profit from bigger digital transformation and business evolution projects. Having a successful and expansive manufacturing business requires the design of an interactive and customer-centric B2B e-commerce platform. So, if you haven't considered converting your physical goods factory to an e-commerce factory yet, now is the moment.

FAQ


Why is web server bandwidth vital for e-commerce sites?

Web server bandwidth is also significant because the more bandwidth available, the more simultaneous visitors your site can handle. Most ISPs and web hosts must supply adequate bandwidth to handle peak demand.

What policies must e-commerce sites have before going live?

A privacy policy, accessibility regulations, and financial reporting policies are just a few of the policies that an e-commerce company site must design before going live.

How is e-commerce useful for manufacturers?

E-commerce allows manufacturers to test new products without risking a large investment. Instead of opening physical storefronts or stocking inventory, you may start selling the new product online.

Spotlight

Stadler Bussnang AG

Stadler - does not exist, does not exist Stadler has been building trains for 75 years. The system provider of solutions for rail vehicle construction is headquartered in Bussnang, eastern Switzerland. The Stadler Rail Group employs 7,000 people at several locations in Switzerland, Germany, Spain, Poland, Hungary, the Czech Republic, Italy, Austria, the Netherlands, Belarus, Algeria, Australia and the USA. Stadler offers a comprehensive product range in the area of thoroughfares and urban transport: high-speed trains, intercity trains, regional and suburban trains, subways, tram trams and trams.

OTHER ARTICLES

Achieving Interoperability in an Industry 4.0 Factory

Article | February 11, 2020

As a part of the Industry 4.0 movement, factory engineers are increasingly adopting some form of industrial Ethernet to interconnect the machines and other equipment implementing their production processes. Ethernet has been around in multiple forms for over 40 years. Most of it serves the IT community by interconnecting PCs and other equipment to a company LAN. Because of its flexibility, Ethernet has been adapted to many industrial uses.

Read More

The Impact of Coronavirus on Electronic Manufacturing

Article | February 11, 2020

Wuhan, the epicenter of the outbreak, is considered a crucial hub in the middle of China, a place of high importance for the production of automobiles, electronics, optics, and fiber optics. Wuhan and surrounding cities in the Hubei province are currently on a government-imposed quarantine at a scale the world has never seen before, some Chinese officials have referred to the situation as warlike.

Read More

Digitalizing Your Manufacturing Ecosystem

Article | February 10, 2020

Making digitalization work for you requires an understanding of your manufacturing ecosystem. Standards - such as ISA-95 - only guide you on a journey to more deeply comprehend the workings of your unique process for manufacturing your products. A batch manufacturing ecosystem often includes campaign management. Campaign management is not mentioned in ISA-95, which only speaks generally of order processing.

Read More

4 Food and Beverage Manufacturing Trends on Tap for 2020

Article | February 10, 2020

It’s the food and beverage industry’s job to appeal to consumer tastes by keeping tabs on what’s hot and what’s not. In the 1990s, for instance, fat free or reduced fat was all the rage, evidenced by the variety of products with such descriptions featured in bold typeface on cartons, cardboard and boxes. Fast forward to today, thanks in part to advancements in nutrition science, fat is back and is recommended in low-carb diets such as Atkins and Keto.

Read More

Spotlight

Stadler Bussnang AG

Stadler - does not exist, does not exist Stadler has been building trains for 75 years. The system provider of solutions for rail vehicle construction is headquartered in Bussnang, eastern Switzerland. The Stadler Rail Group employs 7,000 people at several locations in Switzerland, Germany, Spain, Poland, Hungary, the Czech Republic, Italy, Austria, the Netherlands, Belarus, Algeria, Australia and the USA. Stadler offers a comprehensive product range in the area of thoroughfares and urban transport: high-speed trains, intercity trains, regional and suburban trains, subways, tram trams and trams.

Related News

MANUFACTURING TECHNOLOGY, DIGITAL TRANSFORMATION

Rootstock Software Named Most Promising Salesforce Service Provider for its Manufacturing ERP Solution

Rootstock Software | January 27, 2023

Rootstock Software has been awarded "Most Promising Salesforce Service Provider" by CIOReview for its manufacturing ERP on the Salesforce Platform. The platform offers precise control over operational areas such as engineering, production, supply chain, and inventory and helps manufacturers adapt to challenges in the post-pandemic era. This award shows that Rootstock Software is serious about giving manufacturers solutions that help them become more flexible and quick. Rootstock's ERP is native to Salesforce, allowing organizations to benefit from its ability to plug-and-play with other enterprise and point solutions. The platform offers features such as Salesforce Lightning, Einstein AI, and natural language processing and is specifically designed for manufacturers, distributors, and supply chain organizations. Rootstock Software has shown with this award that it is committed to giving manufacturers modern enterprise solutions that are made to fit their needs. David Stephans, CEO of Rootstock Software, said, “By using Salesforce at the frontend and Rootstock at the backend, manufacturers can truly transform their operations for the post-pandemic era.” (Source - Businesswire) Rootstock's team brings decades of manufacturing and ERP experience to help customers succeed. Rootstock Software is a leader in the Gartner 2020 Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large, and Global Enterprises because of how hard it works. About Rootstock Software Rootstock Software is a company that makes and uses cloud enterprise resource planning (ERP) software to help manufacturers and distributors build operations that can grow, offer personalized, 360-degree customer experiences, and provide better service than their competitors. Their cloud ERP solution, Rootstock, is natively built on the Salesforce Platform and offers a suite of modules including order management, manufacturing operations, supply chain management, and financial management. Rootstock is ranked as a leader in the ERP Value Matrix by industry analysts and has vertical expertise in discrete manufacturing, medical devices, and high-tech verticals. The people who work for the company work with customers as trusted advisors to bring about change and transformation. Rootstock continues to grow and expand its offerings.

Read More

MANUFACTURING TECHNOLOGY

Matterport’s Digital Twin Platform to Support John Deere’s Worldwide Operations

Matterport | February 01, 2023

Leading spatial data firm, Matterport,Inc., recently announced the selection of its 3D capture technology and Digital Twin Platform by John Deere. The implementation allow remote management of over 60 John Deere’s facilities spread across South America, North America, Asia and Europe via a virtual operation center. The company’s platform will create digital replicas of John Deere’s manufacturing facilities, allowing teams to collaborate, plan the site changes, and track progress. To enhance site operations, John Deere will take 4K resolution digital twins with spatial accuracy using Matterport's Pro2 and Pro3 cameras. Employees at John Deere can remotely access any facility's digital twin using Matterport's digital twin technology in order to track materials and assets, keep an eye on vehicles, and integrate real-time IoT data streams. Within the digital twin, real-time collaboration increases productivity while lowering the need for expensive site visits. Jay Remley, Matterport’s Chief Revenue Officer, said, “We’re proud to support John Deere on their journey to reinvent manufacturing operations.” He further added, “For global businesses with facilities spread across several regions and time zones, the ability to remotely optimize each space based on its own unique parameters is a critical unlock for operations management. Our digital twin platform enables companies to reap real productivity gains and cost savings by digitizing their operations for more efficient maintenance, remote monitoring and improved decision making.” (Source - GlobeNewswire) About Matterport Matterport is leading spatial data solutions provider. The solutions are targeted at indexing and digitizing the built environment. Using a digital twin, enterprises can transform their built spaces into immersive, accurate digital twins to create, plan, comprehend, operate and promote any environment with Matterport’s proprietary 3D data platform. The spatial computing platform helps convert build structures into data, using every location and enhancing the overall value.

Read More

MANUFACTURING TECHNOLOGY,DIGITAL TRANSFORMATION,ROBOTICS AND AUTOMATION

Allied Electronics & Automation Provides Industrial Control Solutions in North America

Allied Electronics & Automation | January 24, 2023

Allied Electronics & Automation is the largest authorized distributor of industrial control equipment in North America, offering over 197,000 products optimized for industrial control systems. It is a trading brand of RS Group plc, a global omni-channel product and service solutions provider. Industrial control systems (ICS) are systems, devices, networks, and controls used to electronically operate or automate industrial processes in public utilities, manufacturing, chemical and petrochemical, food and beverage, pharmaceutical, oil and gas, automotive, and transportation industries. System sizes can range from a few modular controllers to massive control systems with thousands of field connections. Allied supports the distinct needs of different ICS with a wide range of industrial control products and a highly experienced, reliable, and responsive technical staff committed to helping customers find the right solutions for their systems. Allied provides cable entry and exit solutions for industrial control cabinets, including ILME rectangular connectors and Mencom cable gland adapters. These solutions allow for secure wiring connections with contactors inside the cabinet (available from suppliers such as Joslyn Clark) and support high-precision machinery and equipment outside the cabinet, including linear motion technology from suppliers that include SCHNEEBERGER. Allied's industrial control solutions include contactors, control stations, controllers, disconnect switches, electric linear actuators, electronic and mechanical counters, inductive signal couplers, machine guarding and machine safety equipment, mechanical power transmission equipment, panel meters, power outlets, power transfer switches, robots, signal conditioning and converter devices, slip rings, solenoids, and timers. About Allied Electronics & Automation Allied Electronics & Automation is a trading name of RS Group plc, a leading global omni-channel industrial product and service solutions supplier to customers developing, building, and maintaining industrial equipment and operations safely and sustainably. The company ships roughly 60,000 shipments daily through numerous methods to 32 countries. It assists customers throughout the product life cycle through innovation and technical support during the design phase, improved time to market and productivity during the build phase, or reduced purchasing costs and inventory optimization during the maintenance phase. The company provides customers with customized product and service offerings that are critical to the success of their businesses and help them save time and money.

Read More

MANUFACTURING TECHNOLOGY, DIGITAL TRANSFORMATION

Rootstock Software Named Most Promising Salesforce Service Provider for its Manufacturing ERP Solution

Rootstock Software | January 27, 2023

Rootstock Software has been awarded "Most Promising Salesforce Service Provider" by CIOReview for its manufacturing ERP on the Salesforce Platform. The platform offers precise control over operational areas such as engineering, production, supply chain, and inventory and helps manufacturers adapt to challenges in the post-pandemic era. This award shows that Rootstock Software is serious about giving manufacturers solutions that help them become more flexible and quick. Rootstock's ERP is native to Salesforce, allowing organizations to benefit from its ability to plug-and-play with other enterprise and point solutions. The platform offers features such as Salesforce Lightning, Einstein AI, and natural language processing and is specifically designed for manufacturers, distributors, and supply chain organizations. Rootstock Software has shown with this award that it is committed to giving manufacturers modern enterprise solutions that are made to fit their needs. David Stephans, CEO of Rootstock Software, said, “By using Salesforce at the frontend and Rootstock at the backend, manufacturers can truly transform their operations for the post-pandemic era.” (Source - Businesswire) Rootstock's team brings decades of manufacturing and ERP experience to help customers succeed. Rootstock Software is a leader in the Gartner 2020 Magic Quadrant for Cloud Core Financial Management Suites for Midsize, Large, and Global Enterprises because of how hard it works. About Rootstock Software Rootstock Software is a company that makes and uses cloud enterprise resource planning (ERP) software to help manufacturers and distributors build operations that can grow, offer personalized, 360-degree customer experiences, and provide better service than their competitors. Their cloud ERP solution, Rootstock, is natively built on the Salesforce Platform and offers a suite of modules including order management, manufacturing operations, supply chain management, and financial management. Rootstock is ranked as a leader in the ERP Value Matrix by industry analysts and has vertical expertise in discrete manufacturing, medical devices, and high-tech verticals. The people who work for the company work with customers as trusted advisors to bring about change and transformation. Rootstock continues to grow and expand its offerings.

Read More

MANUFACTURING TECHNOLOGY

Matterport’s Digital Twin Platform to Support John Deere’s Worldwide Operations

Matterport | February 01, 2023

Leading spatial data firm, Matterport,Inc., recently announced the selection of its 3D capture technology and Digital Twin Platform by John Deere. The implementation allow remote management of over 60 John Deere’s facilities spread across South America, North America, Asia and Europe via a virtual operation center. The company’s platform will create digital replicas of John Deere’s manufacturing facilities, allowing teams to collaborate, plan the site changes, and track progress. To enhance site operations, John Deere will take 4K resolution digital twins with spatial accuracy using Matterport's Pro2 and Pro3 cameras. Employees at John Deere can remotely access any facility's digital twin using Matterport's digital twin technology in order to track materials and assets, keep an eye on vehicles, and integrate real-time IoT data streams. Within the digital twin, real-time collaboration increases productivity while lowering the need for expensive site visits. Jay Remley, Matterport’s Chief Revenue Officer, said, “We’re proud to support John Deere on their journey to reinvent manufacturing operations.” He further added, “For global businesses with facilities spread across several regions and time zones, the ability to remotely optimize each space based on its own unique parameters is a critical unlock for operations management. Our digital twin platform enables companies to reap real productivity gains and cost savings by digitizing their operations for more efficient maintenance, remote monitoring and improved decision making.” (Source - GlobeNewswire) About Matterport Matterport is leading spatial data solutions provider. The solutions are targeted at indexing and digitizing the built environment. Using a digital twin, enterprises can transform their built spaces into immersive, accurate digital twins to create, plan, comprehend, operate and promote any environment with Matterport’s proprietary 3D data platform. The spatial computing platform helps convert build structures into data, using every location and enhancing the overall value.

Read More

MANUFACTURING TECHNOLOGY,DIGITAL TRANSFORMATION,ROBOTICS AND AUTOMATION

Allied Electronics & Automation Provides Industrial Control Solutions in North America

Allied Electronics & Automation | January 24, 2023

Allied Electronics & Automation is the largest authorized distributor of industrial control equipment in North America, offering over 197,000 products optimized for industrial control systems. It is a trading brand of RS Group plc, a global omni-channel product and service solutions provider. Industrial control systems (ICS) are systems, devices, networks, and controls used to electronically operate or automate industrial processes in public utilities, manufacturing, chemical and petrochemical, food and beverage, pharmaceutical, oil and gas, automotive, and transportation industries. System sizes can range from a few modular controllers to massive control systems with thousands of field connections. Allied supports the distinct needs of different ICS with a wide range of industrial control products and a highly experienced, reliable, and responsive technical staff committed to helping customers find the right solutions for their systems. Allied provides cable entry and exit solutions for industrial control cabinets, including ILME rectangular connectors and Mencom cable gland adapters. These solutions allow for secure wiring connections with contactors inside the cabinet (available from suppliers such as Joslyn Clark) and support high-precision machinery and equipment outside the cabinet, including linear motion technology from suppliers that include SCHNEEBERGER. Allied's industrial control solutions include contactors, control stations, controllers, disconnect switches, electric linear actuators, electronic and mechanical counters, inductive signal couplers, machine guarding and machine safety equipment, mechanical power transmission equipment, panel meters, power outlets, power transfer switches, robots, signal conditioning and converter devices, slip rings, solenoids, and timers. About Allied Electronics & Automation Allied Electronics & Automation is a trading name of RS Group plc, a leading global omni-channel industrial product and service solutions supplier to customers developing, building, and maintaining industrial equipment and operations safely and sustainably. The company ships roughly 60,000 shipments daily through numerous methods to 32 countries. It assists customers throughout the product life cycle through innovation and technical support during the design phase, improved time to market and productivity during the build phase, or reduced purchasing costs and inventory optimization during the maintenance phase. The company provides customers with customized product and service offerings that are critical to the success of their businesses and help them save time and money.

Read More

Events