Tag ecommerce for manufacturers

Tag ecommerce for manufacturers

The Top 3 Business Trends for Manufacturers in 2017

December 16, 2016 Tags: , , , , , , , , , ,
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The new year is fast approaching, which means it’s the perfect time to look ahead and start gearing up for 2017. We’re predicting that next year will continue to bring fundamental shifts to manufacturing business operations, thanks to technology.

Here are the top three business trends manufacturers should address to improve profits, drive customer retention and stay ahead of the competition in 2017.

1. The relative value of the aftermarket

Manufacturers of industrial-grade equipment have a continual revenue stream problem—it can be years or even decades before customers need to replace a full piece of machinery, and profit margins are tight on these capital equipment sales. On the other hand, selling aftermarket parts is a high-margin, long-term revenue stream.

drill machine parts

Economic studies show that spare parts and aftermarket sales comprise almost 8% of the GDP, meaning about $1 trillion is spent a year on assets that are already owned. Big money is made through ongoing sales of replacement parts and service products. Who is best positioned to sell these products, if not the OEM?

What may surprise you is that OEMs traditionally capture less than 50% of aftermarket part sales. Instead, most of this market share is captured by third party resellers, will-fitters and other suppliers.

This is a huge missed opportunity. By taking steps to increase these aftermarket sales using technology and other resources, companies can see their profits grow exponentially this upcoming year.

2. It’s time to move more sales online

The internet’s broad use by consumers and businesses has dramatically changed how people gather information and make purchases. And the expectation of equipment owners to be able to research and buy parts online is only going to continue to grow in the future.
an with credit card online shopping

Manufacturers have a unique opportunity over the next few years to streamline aftermarket sales with online parts catalogs and flexible purchasing options.

Brand loyalty may be dying in the consumer retail arena, but OEMs have a distinct advantage when it comes to enhancing the buyer experience. With access to exclusive customer data, comprehensive product knowledge, and more precise parts information, manufacturers have a head start on making a “sticky” online sales platform.

While bargain hunters will always exist, modern shoppers have proven that they will pay for convenience and quality, elements that OEMs are uniquely poised to provide.

Providing online parts sales and information is one of the quickest paths to increase revenue and customer satisfaction. The digital shift means that buyers expect real time information with immediate access. Soon (and by “soon” we mean now), a bulky paper catalog accompanied by a parts desk phone number isn’t going to cut it.

3. Internet of Things (IoT)

IoT drawing

Where do people, data and intelligent machines intersect and how is it going to change the world? According to IDC, IoT spending is expected to skyrocket in the next few years, from $656 billion in 2014, to $1.7 trillion in 2020.

And there’s a good reason for it. IoT can make services more responsive, convenient and efficient for consumers. This is true for industrial IoT (IIoT) as well. Most new heavy equipment includes telematics capabilities, with sensors installed on key systems, whether operators choose to use them or not.

Some companies are using these systems to shift asset maintenance from a preventative to predictive model. Downtime is one of the costliest variables in equipment lifecycle costs, and IoT can play a key role in diminishing it.

Instead of guessing the condition of equipment and replacing parts on a predetermined schedule, maintenance can instead be triggered by real-time conditions monitored by sensors installed in the machine. This may seem like a small change, but significant dollars can be saved by not replacing parts that don’t need it, and by optimizing downtime and reducing unplanned work stoppages.

For manufacturers, think of the benefits gained from this type of data, and how customers can be encouraged to buy aftermarket parts from an OEM. With IoT and accurate data, you can predict a customer’s needs and have parts and supplies ready and in stock. And by integrating this data into your online parts catalog, you could send the customer a reminder email with a suggested shopping cart that includes the needed parts.

This is an exciting time to be in the manufacturing business and use technology to increase customer satisfaction and revenue. By integrating streamlined aftermarket parts sales, data and online capabilities into your overall strategy, your business can jump to the next level in 2017.

Podcast: The eCommerce Opportunity

July 22, 2016 Tags: , , , , , , , , , ,
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In March of 2016 Alan Sage was the featured guest on top marketing consultant Bruce McDuffee’s weekly podcast show, Manufacturing Marketing Matters.

As always, Bruce asks insightful questions and provides his own expert perspective. And Alan shares his predictions on the future of online and aftermarket sales for manufacturers who traditionally relied on dealer/distributor networks to generate orders and revenues from part sales and service.

Alan and Bruce discuss the increasing difficulty for manufacturers to maintain or increase revenues in light of global economic volatility, the proliferation of 3rd party suppliers, and greater competition from non-domestic manufacturers. The competition for aftermarket part sales has become even more challenging, with resellers on eBay, Ali Baba and other online channels vying for the same market share.

The solution is to create an effortless buying experience for online users, akin to the Amazon.com experience that private consumers have come to expect. That is, the ability to buy anywhere, any time, and have confidence that you’ll receive the right parts in a cash-register-ecommercetimely fashion.

Listen to the entire show and learn more about Alan’s actionable takeaways:

  • Manufacturers’ proprietary information (this includes parts catalogs) gives them a competitive advantage over non-OEM aftermarket providers, so figure out how to leverage this information.
  • Customers will pay more for convenience and reliability, so don’t make the mistake of trying to compete only on price when you can truly add value to a transaction.

Bruce McDuffee has proven to be an innovative voice in the world of marketing for manufacturers, applying concepts from B2C and other arenas to the unique challenges and needs of manufacturers. From content marketing to eCommerce to search engine optimization, Bruce stays on top of the latest.

If you’re a manufacturer wondering about the trend toward more transparent online B2B sales, or a marketer looking for advice on best practices for manufacturers, you’ll get something of value from this exchange of ideas.

Check out the podcast on manufacturing eCommerce today.

Technical Publishing 101: Part Supersession & ECOs, Oh My!

June 3, 2016 Tags: , , , , , , , , , ,
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The life of a technical publisher at a manufacturing company presents some difficult challenges. Your job is to produce useful and engaging content for employees and customers. Content that puts the company’s products in the best light, and reflects the importance of customer support to your organization.

And when you finally go to print, or publish your latest project online, you feel a great sense of satisfaction…until you look at the final product and realize that, before even one user views the results of your hard work, there are numerous errors and inaccuracies hidden inside the text.

This is what happens to authors and editors of parts catalogs every single day. Illustrations that don’t match the as-built product. Machines that have a custom configuration of parts and assemblies, but are shipped with a “base model” parts manual. Part numbers constantly being updated, and so on.

Unhappy-Tech-PubCreating an accurate parts catalog for complex equipment is harder than most people realize. Image files, bills of materials, and other source documents arrive from multiple designers and engineers. Engineering change orders (ECOs) are issued during prototyping, testing and production, leading to superseded part numbers and modified descriptions. To add even more confusion, version control may not be universally consistent across departments and document management systems.

It’s up to the publishing staff to pull it all together and ship the documentation, as close to perfect as possible. But it’s never perfect under these conditions—nobody can keep up with all the changes, and desktop publishing platforms require a high level of effort to edit a single part number or illustration.

Often, no one outside the publications department seems to care about these difficulties.

But customers care. Machine operators and technicians care, desperate to fix the machines that their livelihoods depend upon. The dealers who want to prove themselves indispensable to their biggest accounts. And the owners of the machines certainly care, since they view downtime as a vampire-like monster siphoning away profits.

How do you bring order to this madness? Is the idea of a 100% accurate parts catalog a fantasy?

It’s not a fantasy, and it’s achievable with proven, widely available technology. Imagine being able to quickly import part illustrations, BOMs and other product data, right into your authoring tool. With automated linking and hot-pointing of drawings and part descriptions that save hours of formatting labor.

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And, imagine not having to copy and reformat text within your desktop publishing system. Or revise the part number for a part shared between 20 models in 20 separate parts book documents. What if you could edit one text field in your authoring tool and know that you instantly corrected the documentation for hundreds of machines—and thousands of customers—all around the world?

If you could do that, people would start noticing. From the VP of customer service to the guy sitting behind the parts counter, they’re going to notice easier part sales and happier equipment owners. And you’ll deliver that brand new, insanely accurate parts catalog with a huge smile on your face.

This is the power of authoring and publishing with a relational database. It’s the future of technical publishing, and it’s here now. If you’d like to see how easy it is to start building world-class support documents with Documoto, check out our Quick Start Publishing package that offers fast, affordable implementation!

February 2016 Newsletter – News Manufacturers Can Use

February 10, 2016 Tags: , ,
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Digabit February 2016 - Digabit Newsletter

In this Issue

The holiday leftovers have all been eaten or thrown out, so we can get back to our obsession with helping manufacturers grow their businesses through intelligent use of technology. Here are the articles that made the biggest impressions over the last month.

You’ll read about:

  • The 3 technology trends with the most significant impacts on design and production
  • The potential and pitfalls of B2B and B2C eCommerce for manufacturers
  • An IIoT-related survey with data from real manufacturing decision-makers
  • The best uses of data analytics for the automotive industry

Click here to read all of the stories.

Join our monthly Newsletter to receive the latest industry news.

Hot off the Press!

Digabit is committed to keeping current on the latest technologies and trends affecting the manufacturing industry. Every day, about it we comb popular Manufacturing Association blogs, leading industry websites and tech publications sharing the most popular stories on our social media pages. Once a month, we release our Industry Newsletter which includes the most popular stories.

Watch the video to learn a faster way to create parts catalogs

[Webinar] eCommerce Trends and What’s Ahead in 2016

December 1, 2015 Tags: , , ,
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Duration: 30 minutes
Presenter: Alan Sage, CEO, Digabit, Inc.
Date: Wednesday, January 13, 2016
Time: 1:00pm MDT (3:00pm EDT)

Online sales have caused a major disruption in the retail marketplace over the past decade. Is the same thing poised to occur for large manufacturers?

Separate the hype from reality by attending Digabit’s January webinar. Alan Sage, Digabit CEO, will outline his top 5 trends affecting the direction of eCommerce for manufacturers. As someone who talks to manufacturing executives almost every day, Alan has an informed perspective on the current and future state of the eCommerce landscape.

Find out:

  • What are the benefits of expanding online sales capability?
  • How are traditional manufacturing distribution channels changing?
  • How does new technology impact the sales process?

Register Now

Use the form below to register for the upcoming webinar.