Industry TALKS - differentiate with these 3 key manufacturing trends

Work smarter, not harder. Are you getting tired of this phrase yet? Well, not us! In our daily work, it turned into a mantra. Admittedly: it does sound like a catchphrase. However, it has profound wisdom in it. With challenges such as rising costs, labor shortage, and supply chain disruptions being hurled at manufacturers with warp speed, the need to adapt and work as efficiently as possible in your industry is more pressing than ever. If you want to charge your productivity, without burning out your team; If you want to start cutting costs without compromising on quality, flexibility towards your customers, or your distinctiveness as a manufacturer; then this second blog in our Industry TALKS series is for you.

I will share three trends that can make a difference in doing just fine as a company or driving great profit and delivering true value to your customers. And I show how you can start with small, comprehensible steps with customer cases and advice from my team. Time to adapt, change, and overcome.

B2B customers have come to expect the same level of convenience, personalization, and seamless service that they experience as consumers. And let’s face it. Consumers are spoiled by retailers and service platforms who can tailor them to every need in terms of delivery times, costs, and personalization. Plus, they have the customer friendly software in place that keeps them updated of every step in the order process.

The Cool Blue vibe in manufacturing

Manufacturers are feeling the pressure to deliver a Cool Blue experience. However, there are quite a few bottlenecks to achieving this. Often, manufacturers have been in practice for decades, making it difficult to quickly turn their business models and operational models around. Difficult yes, but not impossible. There are no quick fixes, but becoming more flexible to adapt to market trends and customer demands starts with insight, standardized processes, and sharing data and figures across silos. In short: you need software that supports you in achieving this.

Practical case #1: RIHO

In under two years’ time, international bathroom manufacturer RIHO, turned their business model around with the help of SAP S/4HANA Public Cloud. Working more efficiently and cost-effective, they are now able to deliver a bathroom from order to doorstep in just two weeks. A revolution in a market where delivery times are traditionally very long. CEO Guy Claesen says: “As soon as the new system went live, we saw where the blind spots were. In all our locations. We immediately revamped our production process. Instead of producing at maximum factory capacity, the real-time insights the system provided allowed us to quickly shift to fully market-driven production.”

Better control over production, inventory, and delivery times was one of the advantages that the new system offered RIHO. However, responding to market trends wasn’t the only goal Claesen had with the implementation. He says: “Thanks to this SaaS system, we can quickly respond to growing market demand and expand ourselves. We are able to invest time and budget in robotic automation and AI, but also in providing far better service and real-time insights in orders to our customers. We can also rapidly launch new products, like our Garden Tub.”

You can read the entire story of our customer RIHO in het Financieele Dagblad here.

Practical case #2: Variant configuration

In addition to implementing a new ERP system, rethinking your operational models is crucial. Of course, there are more roads which lead to Rome, and the choice of which road you need to navigate all depends on your business model. However, if you are a manufacturer of a specific product with multiple variations – like we often see in the automotive industry in which you can choose different options for a new car – incorporating a tool such as variant configuration on your shop floor, might be a good fit for you. While variant configuration is a very niche approach, it is an effective way to meet the growing demand for customized or tailored product details, while still maintaining mass production efficiency. This approach allows you to offer personalized options without sacrificing the benefits of large-scale manufacturing.

Variant configuration allows manufacturers to create multiple variations of a product based on customer-specific requirements. However, this kind of customization requires a robust ERP-system. Without a capable ERP in place, the complexity of managing configurations, tracking orders, and maintaining efficient production becomes overwhelming. A solid ERP system integrates all functions from order management to production scheduling, enabling manufacturers to offer highly customized products while keeping operations smooth and costs manageable.

You can read more about the benefits of variant configuration in this blog.

Practical case #3: Do as you promise

Giving your customers that real Cool Blue experience, even in B2B? It’s not just about offering customization options. It’s also about simply delivering excellent customer service. And that starts with keeping your promises. For example, by always providing a realistic delivery time before the customer places an order. However, when you’re dealing with suppliers and long supply chains, giving an accurate delivery time is no easy task. So, how do you manage that? This is where software comes into play, particularly the ATP module in SAP. In this blog, Bas Buijvoets explains its benefits.

Closely tied to the trend of customization is the rise of additive manufacturing, or 3D printing. This technology bridges the gap between high-cost personalization and cost efficiency. With 3D printing, manufacturers can offer personalized products at a fraction of the cost traditionally associated with customization.

A major benefit of 3D printing is its capacity to produce small batches without substantially raising the cost per unit. This helps manufacturers meet the growing demand for customized products while maintaining profitability. Companies can significantly shorten lead times, lower storage costs, and quickly adapt to changes in market demand, since you can print a product on-demand, having the digital design readily available.

Cradle-to-cradle 3D printing

The environmental benefits are worth noting. By printing products layer by layer, manufacturers use only the exact amount of material needed, leading to significant material savings. Additionally, many of the materials used, such as plastics and metals, are recyclable. Taking that sustainable factor, a step further, manufacturers are already experimenting with cradle-to-cradle materials that will enable them to explore new business models. They are able to offer their products as a service, delivering tailored products to meet specific needs. If the customer later develops different needs or no longer requires the specific product, they could return it to the manufacturer, who would then 100% reuse the materials to create a new product for that customer.

Moreover, local production is another benefit of 3D printing. Instead of relying on centralized production hubs, manufacturers can bring production closer to their customers, cutting down on shipping costs and increasing the speed of delivery. This shift toward localized, on-demand production also supports sustainability efforts, as it reduces both transportation emissions and excess inventory.

A practical case for 3D printing: Hans Boodt

One of our customers, Hans Boodt Mannequins, is a true frontrunner when it comes to incorporating 3D printing into your business model successfully. In this video, CEO Marco Ouwerkerk explains the current growth and the ambitions of the company:

If there’s one thing that will power the future of manufacturing, it’s data-driven decision-making. Manufacturers are sitting on a goldmine of data, yet many are still figuring out how to use it effectively. From sensor data in production facilities to customer feedback on product performance, every aspect of the manufacturing process can be optimized through proper data analysis.

Data analytics tools, powered by AI, offer immense potential to boost productivity, cut costs, and improve product quality. For instance, manufacturers can use predictive analytics to forecast demand more accurately, preventing costly overproduction or stockouts. Additionally, AI-driven software can help identify inefficiencies in the production process, allowing for proactive maintenance and minimizing unplanned downtimes.

Determine your 5 key KPI’s

In my previous blog about overcoming challenges in manufacturing, I argued how companies often embark on ERP implementations without considering the why. Lacking clear focus on what they want to achieve with it, the system – with all its dashing features, dashboards, and data – turns into just another operational system in which you store data. The same goes for data analytics software. Companies understandably want to hop on to that trend, but without clear KPIs, they won’t reap the benefits and won’t get the most out of their investment. That’s why I gladly will repeat my advice: Think about your strategy, your differentiating factors in the market and decide what kind of data you need to help take your short-term and long-term business decisions. That is the blueprint for your analytics or BI software.

In my experience, starting small is often the best approach. Manufacturers can begin by implementing analytics software in key areas, such as inventory management or production forecasting, before scaling up across the organization. As AI and machine learning capabilities continue to evolve, the potential for smarter, faster decision-making will only increase. And with scalable platforms like the SAP Business Technology Platform, which can be used alongside your ERP system, there is limitless room for growth and innovation.

In this Industry TALKS video, I interview our BTP Solution Architect Laurens Steffers on the why, the how, and the what of innovation in the manufacturing industry.