When it comes to digital commerce readiness in Singapore, Manufacturing SMEs are at a crossroad. SMEs tend to focus only on managing their core business and their margins, so innovation and digital commerce will inevitably fall by the wayside. In the meantime, companies (and countries) that proactively include digitalisation in their plans will increase their lead over the others. This is especially true for companies where margins are slim, or that have complex configuration and calculations, like Engineer-to-order (ETO) and Make-to-order (MTO) industries.
Manufacturers today are facing several challenges around the revenue generating unit of their business: Sales. When your sales team’s job includes to calculate production costs, configure the right solution out of a million options and compile Bills of Material extending hundreds of posts, sales has transformed from a number into a data game.
In part 1 of this blog series, we already indentified 5 of the key indicators that your manufacturing business will benefit from sales automation in the form of a Configure Price Quote (CPQ) software.
The first set of questions that CEOs and business managers should ask themselves were:
1. Does the complexity of product configurations affect your margins?
2. Is pricing and product information from your ERP always available to sales?
3. Do your sales teams make costing and pricing errors?
4. Are your approval regulations increasing the length of the sales cycle?
5. Are your margins eaten up by real production costs later?
Businesses in manufacturing industries offering complex products or services to their customers often have 3 problems in common:
- The sales process is lengthy
- The complexity of the products or solutions offered, extends to the sales process itself
- Price calculations are difficult but require 100% accuracy due to slim margins
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.
Last week we organized a live-webinar to help attendees understand how a Configure, Price, Quote software can be a real asset for industries that are looking to boost their revenue in a sustainable way. In this series of articles, we share with you the webinar’s most valuable insights.
Interview with Dr. Christian Cuske, CEO of In Mind Cloud
Recently we explored the advantages of using a Cloud CPQ and CRM for manufacturing businesses. We identified cost-effectiveness, scalability, enhanced collaboration and a more efficient way of processing a company’s data as the main advantages of a cloud solution.
Today we will take a closer look at the underlying technology platform of a cloud solution, specifically, the SAP Cloud Platform (SAP CP). Dr. Christian Cuske, In Mind Cloud’s co-founder and CEO will give us more insights on why the company built their software on this platform and how In Mind Cloud's customers benefit from that choice.
A for Automation, B for BOM, C for CPQ - Get your daily dose of ABCs.
With this glossary, we are bringing together relevant acronyms for manufacturing businesses and offer further guidance around these topics. We are aiming to help you build your vocabulary as we continuously update this list with the latest terms.
Tags: Manufacturing Automation, Cloud Computing, CPQ Configure Price Quote, Digital Manufacturing, EMS Electronics Manufacturing Services, ERP, Glossary, Manufacturing CRM, Manufacturing Business, OEM, SAP Cloud Platform, SAP ERP, BOM (Bill of Material), Industry 4.0, Manufacturing, Q2O, Smart Manufacturing
In the manufacturing world, competition has steepened and consumer demands increased, due to developments such as digitalisation and globalisation. Consumers are hungry for new innovative products, but at the same time demand high quality. In response to this, a trend has emerged in the form of product variation. The ability to offer a high variation of products and solutions from lot size 1 to 1 million is the key for manufacturers to keep up with competition and participate in the industry 4.0.
The word cloud has become one of the most important buzzwords in technology of the last years: if you type “cloud technology” into Google, your search will have over 130 million results. The worldwide public cloud service market will grow to approximately $247 billion this year according to the Information-technology research firm Gartner. Do you need more proof?