Article | December 23, 2021
Sustainable business strategiesare bringing significant financial and environmental benefits to manufacturers. Sustainable manufacturingcreates goods while minimizing environmental consequences and preserving energy and natural resources. In addition, sustainable production improves the safety of workers, the community, and the products they produce.
Allied Market Research projects that the worldwide renewable energy market will reach $1,977.6 billion by 2030, increasing at an 8.4% CAGR. As a result, we can conclude that many businesses are transitioning from traditional manufacturing to sustainable manufacturing.
It’s a good time to be a part of the renewable energy industry. New technologies are coming to market every day, and we work in an industry that is trying to solve an enormous challenge.
– Susan Stone, Chief Executive Officer at Ubiquitous Energy, Inc., in conversationwith Media 7
Though many organizations are pioneering the sustainable manufacturing approach, we have selected five of the most well-known companies making serious attempts to be sustainable manufacturing companiesby all means.
In addition to the list of sustainable manufacturing businesses, this article will discuss the advantages of sustainabilityand how organizations may become carbon neutral. So let's get started.
Top 5 Companies with a Sustainable Business Model
The following are five manufacturing businessesthat are investing in sustainable manufacturingmethodsacross their production processes to become more responsive to our mother earth.
The company is reducing its environmental effect by engaging with suppliers, taking climate action, and driving the shift to a circular economy. Climate change is a key concern for Philips. So they are rethinking their business strategies and decoupling economic development from environmental and social impacts.
They met their aim of becoming 100% carbon-neutral in their operations and procuring 100% of their power from renewable sources by 2020. They intend to obtain over 75% of their total energy usage from renewable sources by 2025 and to reduce CO2 emissions across their whole value chain to meet the 1.5°C global warming state.
Sustainability is profoundly embedded in SCHOTT's DNA. It derives from their distinctive business concept, which dates back to 1896. Their sustainability plan includes responsible governance, workers, society, environment, and climate.
“Regarding climate change, it is high time to act. Everyone must take responsibility – politicians, companies and society. We are ready to play our part. We want to become climate neutral by 2030.”
- Dr. Jens Schulte, Member of the Board of Management with responsibility for the “Zero Carbon” strategy program
Long-term thought and responsible behavior are guiding principles of SCHOTT, which is why they care about the environment and climate. They are entering a new era of sustainable management with their “Zero Carbon” strategic program.
Long term, they seek to eliminate fossil fuels as soon as technologyallows it. They are focused on the most energy-intensive stage of glass melting to create new solutions.
IKEA's low-cost furniture utilizes a lot of wood. But because the company employs sustainable forestry practices, your new minimalist nightstand didn't cost the globe a rainforest. The business is also investing heavily in solar and wind energy. This year, the corporation intends to increase its already significant expenditures in renewable energy, to reach 100% clean energy by 2020. It also leads in offering cleaner, greener products.
In addition to encouraging people to walk, this footwear manufacturer uses recycled aluminum frames in its headquarters in the Netherlands, and underground energy storage to reduce its carbon footprint. Moreover, it has implemented stringent emission regulations at all of its manufacturingfacilities and has cut its overall carbon footprint by around 80 % since the late 1990s. The company also sells the most environmentally-friendly soccer sneakers on the market.
Johnson & Johnson
According to the company, Johnson & Johnson has just begun transitioning a significant portion of its energy reliance to solar power in an effort to become the world's most socially responsible organization. Currently, it is the second-largest user of solar energy in the United States, with more than half of its power coming from environmentally friendly sources.
Rewards of Adopting Sustainable Manufacturing Practices
Many businesses are seeking sustainabilityfor many reasons, including:
Reducesoperating expenses and waste
Respondsto new consumers and get a competitive edge
Buildspublic trust and protect brand and reputation
Createslong-term business viability
Recognizesand address regulatory constraints
What Can We Do to Make Sustainable Manufacturing a Reality?
Every business must support green energy projects. Here are some fundamental actions that every business should take to transform itself into a sustainable manufacturing organization.
Maximize the Efficacy of Fossil Fuels
In today's society, energy conservation is a win-win situation. Approximately half of the world's known oil reserves have been exhausted, which means we are near to the point of diminishing returns in terms of supply. As far as we know, there hasn't been a shortage of supplies. Shutting down unwanted equipment might help you save money immediately. Replace a single-speed motor with a variable speed or servo drive. Use a hydraulic pump with variable speed. Wind, solar, and hydropower can also be used to conserve energy.
Reduce or Eliminate Waste
Don't overindulge; merely take in what you need to get the task done. At this point, we may all agree that it's easy, but in the past, our primary focus was on reducing productioncosts or time to market. Whether we were wasting resources was unknown or irrelevant to anyone. Metal, paper, and packaging are all examples of industries where this is true. The potential for waste reduction may justify the purchase of highly accurate production equipment.
As a byproduct of manufacturing, metals may be easily recycled and used for new products. In addition, recycling metal saves money and energy since it uses less energy in the manufacturing process, allowing for a 60 % or more reduction in the energy needed to make new products.
Sustainable manufacturing practicesare making manufacturing industries more socially responsible and carbon neutral. This new manufacturing method is necessary for today's period because we must consider future generations while improving today's. Natural resources must be conserved before depleting, and we have nothing left to offer future generations. Responsible organizations have already used this sustainable approachin their manufacturing processes, and we anticipate that every company should consider this method to be more sustainableand environmentally responsible.
What is the difference between green and sustainable manufacturing?
The main difference between green and sustainable is that green addresses a single aspect i.e., environmental health, but sustainability addresses the entire system, including economic, social, and environmental aspects.
Which business is more environmentally friendly?
According to Corporate Knights, Alphabet, Tesla, and AstraZeneca were among the world's most sustainable companies in the Global 100 Index for 2021.
What are the four sustainability factors?
The word sustainability refers to programs, activities, and actions to preserve a resource. But it relates to four unique key areas. Human, social, economic, and environmental are the four pillars or factors of sustainability.
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
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.
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.
Article | June 8, 2021
The last 12 months saw a considerable increase in e-commerce, driven by the global pandemic with many retail commentators believing this is an irreversible behavioural shift.
If correct, this will further underline the importance of the packaging journey, since the likelihood of consumers primarily interacting with brands through deliveries increases, potentially becoming the standard purchasing process.
Robert Lockyer, CEO and founder of Delta Global, a sustainable packaging solutions provider for luxury fashion brands, considers the impact of the packaging journey amid these new retail dynamics.
How much impact could a single packaging box have when it comes to consumer engagement and marketing? This is a question that all retailers and brands should reconsider, given the tumultuous nature of the retail landscape.
If Deloitte’s recent report into the Danish consumer’s permanent shift to online shopping can be viewed as a microcosm of imminent global trends, then businesses must adapt packaging to incorporate the entire journey.
Last year, the fashion and luxury markets were forecast to decline by an astounding $450 - $600 billion. A market previously thought too-big-to fail is taking a huge financial hit. The long-term effects of Covid-19 on retail as whole are unclear. But packaging has become too integral to the sales journey to ignore.
Packaging, therefore, can work as a core marketing tool, beyond the basics of the primary recipients’ experience. In this article, I’ll highlight how best to consider and exploit the entire packaging journey, ensuring that packaging realises its complete potential.
Manufacturing that avoids the use of sustainable materials is becoming impossible to justify, from both an economic and environmental perspective.
In fact, they are, practically speaking, one and the same. We know that a significant majority of consumers expect businesses to adopt a sustainable ethos – and are willing to pay more for it.
Therefore, the economic viability of sustainable packaging is fortified by consumer expectation. It is both a market and environmental inevitability.
Beginning a packaging journey should start with the selection of sustainable, recyclable, reusable materials. This is a stage in the packaging voyage that is easily achieved, with manufacturers increasingly switching to eco-friendly methods.
At Delta Global, sustainability is incorporated into every packaging product we produce. We’ve seen demands for sustainable services increase, but more can be done to mark this initial step as a marketing footprint rather than a footnote.
There are some great recent examples of how to do this right, from Burberry’s elegant reinvention of the ordinary cardboard box which will go even further to remove all plastic from its packaging by 2025, through to Gucci’s opulent Victorian wallpaper design packaging that is fully recyclable.
And so, step one - the initial consumer experience and expectation, is met through sustainable materials, and when done correctly, is easily exceeded.
Once the correct materials are selected, brands should start think about design beyond creating an attractive, secure container.
The goal here is to inspire the consumer to utilise the packaging in a way that positions them as a virtual brand ambassador.
Consider the rise of the unboxing video. YouTube reported a 57% increase in product unboxing videos in one year, with these videos having in excess of a billion yearly views.
Together with Instagram, where 58% of its estimated 1.074 billion users log-in to follow trends and styles, visually oriented content platforms provide an unmissable marketing opportunity.
It is important to underline that this type of viral marketing need not rely on paid celebrities. In fact, I am advocating for a completely organic approach where possible.
From a brand’s perspective, recipients of well-executed sustainable packaging must progress this initial positive experience by innovative and thoughtful design.
That way, authentically persuasive content will occur naturally. And it's this type of spontaneous, highly engaged micro-influencing that rewards brands that have fully considered the packaging journey.
To achieve this requires innovation. You might consider implementing technology and connected packaging, where apps and QR codes are integrated into the packing itself.
A favourite example of this is Loot Crates brilliantly innovative unboxing experience which connects, via an app, to new products and exclusive items.
While technological innovation provides a novelty that encourages unboxing videos, simpler approaches can equally inspire the consumer through personal touches like VIVE Wellness’ individually packaged and addressed turquoise vitamin tubes, or M.M Lafleur’s curated and detail-oriented ‘bento box’ styling solution.
These packaging creations work because they provide memorable experiences, centred on discovery, individuality and, ultimately, shareability.
Packaging after purchase
The third and most under-utilised part of the packaging journey is post-unboxing usage. Brands should ask themselves who the packaging is seen by – and does the packaging have the function to be seen and used by others?
At this point in the packaging journey, we are hoping to harvest as many positive impressions as possible. This can include, for example, delivery drivers, photographers and stylists.
The concept is not abstract. Reflect on the reaction felt by a fashion photographer the first time they received, from an enthused stylist, a Gucci item in its new opulent emerald green packaging. Or the response of a delivery driver when seeing, in amongst the more mundane boxes, MatchesFashion’s reimagining of the a cardboard parcel.
Is it likely that the impression made by those stand-out packaging designs will be talked about, purred over, recommended and revered? The answer is obviously a resounding yes. When this happens online, we call it influencer marketing.
And we should not dismiss this type of marketing when it happens offline. Word of mouth matters. In an increasingly online consumer market where the first – and perhaps only – physical interaction between brand/consumer is through the packaging experience, it will matter more.
To our imaginary trio of driver, photographer and stylist, let’s introduce the general consumer. How likely it is that any of those would throw such packaging away?
They are so wonderfully designed that reusability and repurposing are inevitable. When a packaging compels secondary usage - deployed around homes and offices as containers, storage or decoration – you are creating an item that symbolises what marketers spending entire budgets pursuing: brand as central to an aspirational lifestyle.
If the retail market is moving irrevocably online, the offline journey of packaging – from manufacturer, deliverer, consumer and user – can ease that transition and become a perpetual marketing tool. This way, brands and retailers can enjoy the journey and the destination.
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.
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.
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