Are manufacturers ready to champion the CX era?
The core principals of lean manufacturing have always been to reduce waste, maximise efficiencies and cut down on costs and lead times by improving supply chain efficiency, making overall improvements to related processes and streamlining production timelines. But as manufacturers become more digitally integrated and closer to end consumers with B2B2C models, the data from this customer engagement is extending to include wider end-to-end processes beyond just production and it is now becoming as important as operational efficiency. Enter Lean Manufacturing 2.0.
To understand how the customer can drive success in the manufacturing world, Simon Noakes, CXE Director of Columbus, outlines the key considerations for a customer-centric strategy from personalisation at scale to diversified communication channels, data-driven decisions and built-in flexibility throughout the whole supply chain.
The manufacturing industry has undergone significant transformation in recent years with supply chain disruptions, workforce challenges and the push to embrace digitisation. Yet one thing remains unembraced: the customer. A massive 89% of manufacturing companies competing primarily on customer experience outperform their competitors!
Lean principles are starting to be applied with a wider perspective, driving more ‘value’ rather than just less waste. The new goal is to optimise the whole value stream in order to improve customer satisfaction.
This customer-centric approach is critical to help manufacturing companies stay competitive, improve efficiencies and build long-lasting partnerships by focusing more on activities that involve engagement with the customer. But how can more manufacturers embark on a successful CX journey?
Technology can clearly support this customer-centric shift through rapid access to customer information and historical interactions, but it goes much further than this. Here are four key areas where manufacturers can digitally align all aspects of the business around customer needs.
- Time to get personal
Traditional lean manufacturing principles have primarily focused on operational efficiency, whereby every decision aims to reduce waste, time and costs. But today, it’s not enough to just have efficient processes, personalisation matters.
Let’s take industrial equipment for example, where customers want to feel that solutions are tailored to their specific business needs. Manufacturers can exploit this need by widening the use of customer data from IoT sensors, ERP systems and CRM systems to offer customisable features, personalised consultations or specialised product recommendations. These invaluable tools can also provide customers with real-time updates on their orders, product performance and maintenance schedules. All of which add value to the end-to-end process but are delivered as efficiently as possible.
When customers feel understood, they’re more likely to stick with a company. This is why a proactive manufacturer who truly understands their customers’ pain points, goals and preferences are better positioned to deliver products, solutions and an engagement process that add value.
- Omnichannel engagement becomes the new customer interface
In the past, manufacturers relied heavily on face-to-face interactions and trade shows to connect with customers. Today, an omnichannel digital approach is just as important. In fact, 83% of manufacturing firms report increased customer satisfaction after adopting digital communication channels.
Unlike a ‘one size fits all’ approach that doesn’t meet the needs of individual customers, an omnichannel digital approach ensures manufacturers can engage customers wherever they are and can adapt to changing needs, ideally in real-time, if one channel is not resonating correctly. This is why a truly customer-centric digital strategy involves seamless integration across multiple platforms. From automated customer service chatbots to online ordering systems, manufacturers need to create an interconnected experience that delivers consistent messaging and value across every channel.
Manufacturers that align their digital strategy by better meeting customer needs across a variety of digitised touchpoints can benefit from a level of service that goes beyond the product itself and position themselves as standouts in the competitive marketplace.
- Close the feedback loop to unearth hidden opportunities
Traditional lean manufacturing methods aim to identify and reduce waste in physical interactions and communications between resources or activities on the shop floor. But this overlooks the value in improved communication and feedback, which can be detrimental to future success. A lack of customer feedback for instance, can lead to waste in the form of missed opportunities for product improvements or improved engagement processes that customers would actually value and could even result in more business.
- Understand what matters most to your customers and act on it
Whether tracking website inquiries or looking at order histories, data helps manufacturers make informed decisions about what to produce and how to market products.
By using real-time data to understand customer demand, manufacturers can adjust their operations to streamline process, improve products, reduce waste and increase profitability. Manufacturers can also test new approaches and adjust strategies based on feedback and performance metrics that are integrated into design and production processes.
Data-driven strategies can be used to optimise everything from inventory management, production schedules to improved and accurate communication. Already 69% of manufacturing companies are using customer feedback to drive product development but more manufacturers can get in on the action.
- From fixed to nimble – built-in flexibility across the entire supply chain …
The world of manufacturing moves fast and customer needs are constantly changing. Whereas earlier lean manufacturing methods would consider time spent on non-productive activities such as setup and delays as waste, manufacturers must now factor the customer’s time into the equation. Everything from enquiry time to delivery times and response times to customer inquiries are now integral to the customer experience.
If a customer asks for a product modification or a quicker turnaround time, being able to respond quickly is a huge advantage. But manufacturers should aim for speed without sacrificing product quality or customer service.
… and the technology making it all happen
An example of where manufacturing businesses can be truly agile is by using technologies such as supply chain management software and AI-powered demand forecasting to stay one step ahead. This means manufacturers can anticipate customer needs and adjust operations and product offerings accordingly. This approach to ensuring customers receive what they want, when they want it, can lead to fewer stockouts and excess inventory, both of which contribute to improved customer satisfaction.
When digital strategies focus on the end customer, manufacturers are better able to align supply chain activities with customer demands and add value to the overall customer experience. This creates more efficient production cycles, faster delivery times and improved communication all around. In theory, anywhere where you can access customer information rapidly, summarise it, use it and update the customer quickly and accurately without long pauses will improve ongoing relationships and loyalty.
- Serving customers better is a smart payoff
Transitioning from a pure operational strategy to a more customer-centric approach still requires the applications of the lean principles of waste reduction. But reducing waste has taken on a broader definition, it’s also ensuring that manufacturers deliver greater value to the customer. Manufacturers who use the right digital tools to incorporate customer needs and focus on their preferences, are in a great position to strengthen customer relationships. This allows manufacturers to deliver improved engagement as efficiently as possible and identify new business opportunities that will position them ahead of their competitors.
