Channel and market growth opportunities for manufacturers

Current and imminent industry challenges

The transformation of business processes brought about by digitization directly impacts commercial experiences and multiplies channels. Unified commerce and connected operations are at the heart of adapting to industry challenges, meeting new demand, competing, and increasing growth potential.  

The pandemic has led to a new normal, which is actually yet to be defined. One thing is certain, eCommerce and digital channels adoption has reached it’s 10-year forecast in less than 2 years. The impact is being felt across every sector, with manufacturers feeling the brunt of things created by direct-to-consumer channels disruption and automation. Digital transformation is no longer an if or a when, but a must and a priority.  

1. Channels cannibalisation 

Manufacturers must address the challenges and friction created by cutting out partners and intermediaries to go direct to consumer. Resistance is futile because the competition is already doing it and taking advantages of the benefits and opportunities.  

2. Pricing homogeneity 

Distributors are buying bulk and selling on marketplaces like Amazon and others at more competitive pricing vs what traditional intermediaries are able to offer or address with MSRP. Handling the pricing structures across various channels and marketplaces becomes a significant challenge now for manufacturers.  

3. Investments 

To leverage these new channels and the opportunities they present, manufacturers must consider which technologies can turn considerable investment into ROI. They also have to invest in resources and marketing efforts to bring this new approach and way of doing business to fruition. 

4. Expertise and qualified resources 

The competition is fierce to find qualified resources in digital transformation not only among manufacturers, but with companies across all sectors and even with technology companies themselves. The same holds true for training your workforce in these new tools. 

5. Change management 

Digital transformation requires a 100% commitment and focus because at the root of a successful transformation is resulting experiences, not just for user adoption but also the online customer experience that is becoming more and more a reflection of your brand. Clients are one click away from heading to the competition.  

6. Legacy systems 

Most companies are handcuffed by their siloed or even archaic technology systems and business processes. Adapting for this new normal and ability to compete requires modernization and unification of all systems across the organization. Cloud technology makes that possible.  

Channels proliferation through digitalization: Key driver for new opportunities and countering market disruption 


Opportunities for Manufacturers 

1. Growth through new markets  
   
   
2. Owning the customer 
   
   
3. Enhanced customer satisfaction 
   
   
4. Increase company/brand value 
   
   
5. Business process automation and efficiency 
   
   
6. Better demand forecasting
   

Watch our conference recording on how to unify commerce and business processes and how Microsoft is making cloud adoption more accessible for manufacturers of all sizes!