Singapore Economic Development Board (EDB) recently released news regarding the Business Expectations of the Manufacturing Sector. Whilst these are generally on the positive end, we want to give you insights into how manufacturing businesses can amplify these effects via digitalizing their sales operations.
6 Month and Q3 Outlook for manufacturing sector
The outlook for the next 6 month shows a general increase in most areas of manufacturing. Both precision engineering and biomedical manufacturing show the highest positivity. Followed closely by the electronic sector and the chemical sector.
Within the precision engineering cluster, both the precision modules & components segments and the machinery & systems segments increase positively due to the need for higher production of semiconductor-related equipment, moulds and optical instruments. In regard to the electronics sector, the semiconductor segment remains optimistic thanks to the ever growing thirst for smart phones. The transport engineering cluster envisage output levels to rise as anticipation of higher production of automotive parts and aircraft engine repairs.
Here is an infographic showing the outlook for businesses in the manufacturing sector:
How can you bring your manufacturing business on a positive trajectory?
Besides the trajectory of the manufacturing line and a general positive outlook, business in the industry still remain cautiously optimistic. General sales challenges of manufacturing companies are slim margins and a high-risk of quote inaccuracies that can outplay the expected increase of manufacturing output. So how can businesses bring themselves on a positive trajectory?
Digitalizing sales in manufacturing to protect slim margins and increase revenue
It is important that businesses evolve alongside the technological market and acquire digital tools that will not only help alleviate their problems but increase their revenue. The introduction of automation into manufacturing operations is just one way to save cost and protect dwindling margins. The advantages of factory automation have been extensively discussed but in parallel, the need for sales automation has risen.
A sales automation tool like CPQ (Configure Price Quote) that is deeply integrated with the company's backend ERP currently is the best bet on the market to protect slim margins and increase revenue according to Gartner.
A fully integrated CPQ system guarantees that constant up-to-date product, material and pricing information are used and ensures that costly configuration errors are evaded. The pricing tool within CPQ optimises the margins allowing for profitable quotes as well as balancing discounts requested by customers. This increases customer satisfaction and lowers the probability of order rejection, both of which are crucial in today's competitive, global environment.
With a quotation software handling all the product and pricing rules, the cost of sales can be reduced up to 30-60% thanks to sales processes automation and cycle time reductions. Minimised order reworks and additional revenue via cross-selling can also be attributed to the use of a CPQ software.
Investing in a Configure Price Quote solution that is deeply integrated into your ERP backend provides you with the power to quote efficiently, quickly and accurately. Given the overall positive outlook for the manufacturing industries, now is the time to look at investing into digitalising your sales to not only align yourself with positive sentiments but keep ahead of your competitors.