Rethinking Pricing, Revenue & Profits in Manufacturing
Rethinking Pricing, Revenue & Profits in Manufacturing provides an overview of the state of the industry and introduces a framework guaranteed to drive rapid growth and profitability.
The Industry Brief for Manufacturing provides an overview of the state of the industry and introduces a framework guaranteed to drive rapid growth and profitability.
All industries are undergoing digitization—where production, marketing, sales, and support are increasingly occurring through digital means. The manufacturing industry is no exception.
Manufacturers can no longer relegate marketing and sales to their distributors and retailers—they must embrace a business-to-business-to-consumer (B2B2C) model in order to control their brand, their market share, and their profit margins.
The traditional ways of waiting for their distribution partners to tell them what to make, and how much to make, is largely gone. As are the old ways of determining what to price which SKU sold to which channel, using data from standalone ERP systems and spreadsheet models.
Such systems use limited data needed to make accurate production and pricing decisions. With the growth of stocked SKUs in addition to the countless available drop-ship SKUs, there are just too many SKUs, regions, and channels to price and sell optimally using static methods of relying on data from ERP systems and modeling on spreadsheets. Furthermore, these systems take too long to adjust when market conditions change—as they frequently do in manufacturing industries.
Without data science, making money in manufacturing is getting harder. Manufacturers must find a new way that can handle the complexities of the digital first world. Without data science enabled selling processes, it will be extremely difficult to achieve business unit financial goals with certainty.
This paper explores the state of manufacturing, the changes it is experiencing, and explains a proven, successful digital transformation framework.
It then examines a suite of artificial intelligence (AI) and machine learning (ML) capabilities that are founded on data science and over 35 years of deep industry insights. These AI powered solutions enable manufacturers to transform their end-to-end sales process in order to provide a fast, smooth buying experience for their customers, ultimately driving rapid growth and profitability.
10 Things You’ll Find in This Industry Brief
- Global market uncertainties that manufacturers are facing.
- Why manufacturers need to shift to B2B2C.
- The impact of severe skilled labor shortages on manufacturing.
- Why global competition is getting more intense for manufacturers.
- What customers are saying they want from manufacturers.
- Why cost-plus pricing is dead.
- How dynamic pricing manages capacity in any demand.
- A proven, successful Digital Transformation framework.
- Why an auto parts manufacturer, industrial manufacturer, and building materials manufacturer adopted AI-powered technologies.
- How to achieve an average an average 1-3% impact on profits, 2-5% impact on win rate, and 20-40% impact on productivity.