Like every other sector, the machining industry is in the process of significant transformation as a result of digital innovations being introduced. In order to create a clear competitive advantage, many machining businesses are trying to secure smart processes to improve efficiency, create cost savings and deliver more seamlessly for their customers.
According to the latest figures, digital transformation in the manufacturing market is estimated to have a market value of USD 307.87 billion in 2023, with predictions of a rise to USD 733.75 billion by 2028. A likely CAGR rate of 19.4% by 2028 has been suggested by industry insiders who are pointing to Asia Pacific as the biggest growth market over the next 5 years.
It is the case that manufacturing companies are quite rightly questioning the accuracy and reliability of AI-powered solutions as they are still developing to maturity. Nonetheless, the overpowering evidence to suggest that the rewards for integrating digitalization into machining organizations is key to their ability to grow and scale at a sustainable level.
What is digital transformation?
The term ‘digital transformation’ refers to the addition of digital technologies into manufacturing operations for the purpose of improving processes, streamlining supply chain management and tool or part procurement. Solutions such as data analytics may be implemented to support an increased understanding of buying or selling protocols.
How can digitalization help manufacturing companies?
1. Gain new loyal customers
With the aim of discovering the ways that digitalization is occurring in manufacturing companies across Europe, we recently undertook a timely market research project. It’s true to say that the results are illuminating, as personal insights from many suppliers of machine parts, including clamping tools, CNC tools and factory equipment were gathered.
The quality of feedback enables us to critically assess the state of the present market. In fact, digitalization is helpful when buyers have difficulty with their main supplier being unable to provide an available product as they can quickly search and connect with new, reliable suppliers.
It’s safe to say that the industry is quite traditional in many respects, with most suppliers still selling their products through a thick, unwieldy physical catalogue that lists (tens of) thousands of items. As a result, buyers have to spend precious time navigating these supplier catalogues, which can be an inefficient and frustrating process.
Research in this area demonstrates that buyers tire of these traditional processes and become less loyal as their dissatisfaction with a lack of digitalization in their suppliers’ businesses may hold them back.
In a similar vein, buyers increasingly prefer to interact with automated self-service solutions rather than tedious meetings with sales representatives.
Even though many businesses are connected to a solid local network of distributors who help them find what they are looking for on a regular basis, the fast growing demand for direct online commerce cannot be ignored. For example, how can you resolve issues when your local distributor is out of stock, or you disagree on the terms or price? Digital tools, such as Hectool, will help you search and compare within seconds.
2. Manage budgets with simple processing
There are multiple benefits from digitalization in the manufacturing industry. Historically, the market for purchasing machine parts and factory equipment has been orchestrated as a traditional one-to-one process. Since the Covid-19 pandemic, many buyers are no longer operating in this way and have sped up their adoption of digital tools to simplify and streamline their business.
Not only does this help them to simplify their daily operations through easier processes and more efficient systems, but there is also the opportunity to create distinct cost savings. This can occur by cutting down on time-consuming meetings and large parts of the day dedicated to searching for new buyers or suppliers to support their business.
3. Streamline client management
Our European market research suggests that client management can take up a sizeable portion of weekly time. Even standard order processing consumes a considerable part of the day. As such, the automation of standard ordering and transparency of real-time stock levels can deliver valuable time reductions and cost efficiencies.
Furthermore, the flexibility and preparedness available through digitalization can empower manufacturing companies with measurable competitive advantages ahead of their competitors. Some key additional added benefits are the real-time insights provided into consumption levels and the ease of automated standard item re-ordering which create effective time efficiencies and targeted analytics.
4. Share stock in real time
Managing stock levels to ensure reliable availability is a sensitive and challenging exercise. Undoubtedly, digitalization of stock management can save time as suppliers will be able to focus on order accessibility and on-time shipping and delivery. Refining stock management can also provide space to expand into more extensive order capabilities.
The same can be said for real-time stock levels as digitalization of stock documentation enables the constant adjustment of stock levels saving businesses time, effort and money with an enhanced component of transparency.
5. Save time with Hectool
Manufacturing companies in Europe that have been surveyed this year demonstrate that those who are investing in digital technologies are more optimistic about the business prospects of their sector. The share of EU firms implementing advanced digital technologies increased from 2021 into 2022, reaching 69% of the market.
Nevertheless, it’s a challenge for businesses to constantly update their website and keep ahead of industry trends. This is why you can count on Hectool’s expertise and easy-to-use platform to help you gain the advantage.
Hectool helps to automate your sales process so you can grow your business at your own pace. With Hectool, you will be able to completely automate your process of buying or selling machine tools and parts in seconds.
If you want to find more customers, save money, and speed up the whole process then it’s time to join Hectool. By simplifying client management and sharing real-time stock information, Hectool delivers what you and your customers need, when you need it.
Discover how Hectool can help you scale your business and give you more time in your day.