by Fronetics | Apr 20, 2017 | Blog, Manufacturing & Distribution, Strategy, Supply Chain
Industrial product buyers are changing how, why, and where they buy. Are you prepared to accommodate their preferences?
Distribution has always been an industry built on relationships. The loyal customer favored companies where they developed strong working relationships with a sales representative.
But recently distributors have felt a shift in the tide. Buyers have grown impatient with one-on-one sales relationships and quickly embraced the convenience of buying directly from manufacturers, for one. Distributors are left scrambling to keep up with such trends.
So how do distributors stay ahead of the game?
UPS recently conducted a study of the behaviors, preferences and perceptions of industrial product buyers. It found four major market forces driving change: customer demands, direct-from-manufacturer purchasing, e-commerce, and millennials. Additionally, the study offered up a few interesting takeaways we thought were worth highlighting.
5 trends in industrial product buying
1) Purchasing drivers
The study asked for the top five factors that are most important when purchasing industrial supplies from buyers’ preferred distributor size. Though “best prices” was a top contributing factor across the board, as you can imagine, other answers varied from small distributors to large.
For those purchasing from smaller distributors, 58% of customers ranked personalized service as most important. Among those preferring large distributors, 61% of buyers wanted a wide selection of products.
Takeaway: There is a strategic opportunity for mid-size distributors to cater to both types of buyers. Mid-size distributors focusing on larger selection with personalized service can offer customers the best of both worlds.
2) Friends stick with friends
Word of mouth is still the top tool buyers use to research a new distributor. Studies have shown that consumers trust recommendations from people they know more than any other form of advertising, and the same is true for distribution. Personal references and word of mouth are heavily influencing buyer trends.
Takeaway: Distributors need to have their ears to the ground and really focus on what buyers are saying. If the word on the street is that your company needs to make changes, make them. You want to consumers raving about your company, so others will follow suit. Also, consider the value of review sites.
3) Internet is king
The importance of the internet is old news. But UPS’s study found a substantial jump in buyers’ going online to purchase industrial supplies. In 2013, 57% of buyers were hitting the web, and that number grew a significant 9% in just four years.
Takeaway: Suppliers need to make sure that their websites are a one-stop shop for customers. Buyers need to be able to find answers about products, confirm product details, and access their negotiated prices all online. Spending the time and money to update your website is key to giving buyers a preferred way to make purchases.
4) User-friendly everything
Along with wanting to make purchases online, industrial product buyers want the ease and convenience of user-friendly websites. 72% of buyers said they would shift their spending to a different distributor with a more user-friendly website, and that number increases to 85% with buyers age 21-30. These findings confirm the shift from relationship-based buying to the experience-driven trend.
Takeaway: Brand loyalty is no longer based solely based on product quality and personable sales staff. Distributors need to take into account convenience, speed, and a good customer experience. What appeals to customers is the ease of their online service. Staying ahead of trends will involve constant maintenance of your website and its usability.
5) Cross-channel consistency
Industrial product buyers may be making most of their purchases online, but they are definitely checking in with friends and social media before making any decisions. Oftentimes websites don’t provide enough information, and, by default, they rely on other channels to confirm details before making purchases.
Don’t let users find conflicting messages from different resources. Cross-channel consistency will give your company an edge on the competition.
Takeaway: Make sure that your off-site and onsite messages are clear across all channels. Examining the buyer experience on and offline — and making sure that all channels are communicating the same message — can elevate your company’s position among your competitors.
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by Fronetics | Mar 23, 2017 | Big Data, Blog, Current Events, Data/Analytics, Internet of Things, Logistics, Manufacturing & Distribution, Strategy, Supply Chain, Talent, Warehousing & Materials Handling
Our series by MBA students and graduates at Peter T. Paul College of Business and Economics highlights some of the most pressing issues in supply chain management today.
A few years ago, the Wall Street Journal called supply chain management the “hot new MBA.” Many universities have been introducing related degree programs, majors, and concentrations in response to a growing demand for new hires with supply chain expertise. Graduates of these programs are heavily recruited by employers, which is helping to attract ambitious, young talent to the industry.
Fronetics had the opportunity to collaborate with some of these rising stars by inviting MBA students from the University of New Hampshire Peter T. Paul College of Business and Economics to author guest posts on our blog. They covered a variety of pertinent topics, from the Internet of Things and Big Data to pet food and Chipotle. Their pieces are summarized below.
In the coming weeks, we’ll be partnering with another MBA class at UNH to author a second series of posts covering some of the most pressing issues in supply chain management today. Make sure you receive our blog e-newsletter (sign up to the right) or follow us on social media so that you don’t miss out.
Steve Mondazzi writes about how the Internet of Things is now being used to improve factory workflow, increase material tracking, and optimize distribution to maximize revenues. Everything from turning lights on and off to security systems can be controlled from your smartphone, and that technology is moving to the manufacturing industry. Mondazzi examines Mark Morely’s theory that the IoT will impact the industry in three main ways: pervasive visibility, proactive replenishment, and predictive maintenance. He also explores hurdles to implementation — such middleware and a common protocol for businesses regarding IoT. Read article
Mikayla Cadoret focuses on the barriers to entry in the pet food industry. New brands have three options: manufacture product themselves, choose a co-packer who uses a private label, or choose a co-packer who will manufacture the food to the specifications of the brand. She discusses the challenges of those choices as well as high-profiles recalls resulting from co-packer error. She recommends strategies that companies implement to keep tabs on co-packers’ sourcing and manufacturing. Read article
Nicole Brooks explores Amazon’s mission to be earth’s most consumer-centric company. The e-commerce giant not only offers low prices, it also exceeds consumer expectations and shifts industry standards with benefits like same-day shipping. Brooks examines Amazon’s biggest technological assets, and looks forward to up-and-coming innovations like Kiva robots in warehouses, drones, Prime Air, and Amazon Business. Read article
Corey Ducharme discusses the traditional four-step problem-solving method and how it isn’t effective in solving needle-in-a-haystack issues resulting from limited business resources. Six sigma can address these issue with its six-step process. With the addition of an analysis phase, solutions become more effective, leading to better results and higher revenue for businesses. Read article
David Chadwick explores whether advances in radio-frequency-identification technology (RFID) will render humans obsolete in the supply chain. RFID could dramatically improve efficiency and accuracy in warehouses by reducing the need for human interaction. But it is uncertain to what degree this technology will be implemented in all aspects of supply chain management. Read article
Dario Cavegn discusses how increasing size and complexity of global supply chains open them up to increased risk. Supply chain disruptions can vary from insignificant to extremely threatening. But regardless of disruption size, supply chains can remain resilient with a business continuity plan, which acts as a road map to continue operations during or after a disruption. Cavegn outlines the development process from analysis to feedback. Read article
Josh Hutchins explores the limitations of big data. The real value lies in the analytics applied to the data. As an example, Solid Gold Bomb drove its prospering t-shirt business into the ground from an oversight and misapplication of data. Hutchins concludes that companies must have an intimate understanding of big data applications to avoid a similar fate. Read article
Michael Hickey discusses third-party logistics providers as a resource for a company’s operations arm. 3PLs offer an outsourcing opportunity for order fulfillment, inventory and warehouse management, as well as transportation of finished goods. But businesses should ask themselves these questions when determining whether a 3PL is a good fit for their needs. Read article
Sarah Hebert discusses Chipotle’s high-profile pork-supplier conundrum. The chain cut their pork supply by a third due to a supplier’s violation of their animal welfare standards. While this affected sales by 7-8%, Chipotle embraced the situation as a strategic PR opportunity. But behind the scenes, the company was scrambling to address long-term supply concerns associated with its rapid growth. Hebert asks, “At what point do you scale back the growth for the sake of maintaining brand integrity?” Read article
Connor Harrison discusses GM’s recall of 2.6 million vehicles. The company’s faulty ignition switches were linked to 13 deaths and 31 front-end collisions, but the company managed to contain the crisis. Harrison examines the root causes of the issue, including faulty ignition switches from GM’s supplier Delphi, a strained business relationship, and legal complications. Read article
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by Elizabeth Hines | Feb 21, 2017 | Blog, Consumer Electronics, Manufacturing & Distribution, Strategy, Supply Chain
Will sustainability trends from the consumer packaging industry have an impact on electronics manufacturing this year?
As we wrap up the first big consumer holiday of 2017, it’s interesting to think about how innovation in packaging never stops. While many of the newest ideas are hitting consumer applications first, perhaps they will point to new directions for electronics manufacturing as well.
Packaging trends suggest a wide range of startups, researchers, and big companies are committed to finding solutions that match the buzzwords du jour — sustainable, bio-degradable, natural, and eco-friendly.
Here are some sustainability trends in packaging that I think will gain momentum in 2017.
2017 packaging trends to watch
1) Multiple uses
Great packaging protects not only your product, but also your brand. But what if the packaging is part of the product itself?
That is the case with innovations such as the expandable bowl by Swedish design studio Tomorrow Machine. Using 100% bio-based and biodegradable materials, the company created a cellulose wrapper that hugs freeze-dried food and morphs into a bowl when hot water is poured into the spout. The bowl ― a sustainable packaging award winner ― is now in good company, and I expect more will follow.
2) Unconventional materials
Egg shells, fermented sugars, barley, and wheat ribbons — those were the materials used to create, in turn:
- Bio-compostable films: Nano-particles from waste eggshells helped researchers at Tuskegee University in Alabama make a plastic film that is completely sustainable and 700% more flexible than other bio-plastic blends. Film made of the new material could be used in retail packaging, grocery bags and food containers.
- A prototype PHBottle: The European PHBottle project aims to initially create a bottle, cap, and sleeve, although use in other applications (non-food packaging and non-packaging uses) will be tested. The bio-plastic material used to make the bottle comes from the transformation of organic matter found in juice processing by-products.
- Edible six-pack rings for beer: Imagine washing down the six-pack ring with your favorite beer. Although that moment is not quite here yet, the future is looking up for a piece of plastic that is notorious for ensnaring wildlife. The first bio-degradable edible six-pack ring for beer is the result of a partnership between Saltwater Brewery; We Believers, an advertising agency; and Entelequia, Inc., a small startup in Mexico. Made from barley and wheat ribbons spent grain from the brewing process, the rings are safe for wildlife to eat and sturdy enough to support the cans.
3) Reusable packaging
The throw-away culture is not for everyone. In fact, Mintel’s Global Packaging Trends 2017 shows 63% of U.S. consumers actively seek out packages they can re-use. More than half of consumers also say they would prefer to buy foods with minimal or even no packaging. With such great demand for waste reduction, innovation is bound to pick up even more momentum.
What do you think 2017 will bring in terms of sustainable packaging for the electronics industry? Let us know about promising innovations you’ve seen.
This post originally appeared on EBN Online.
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by Fronetics | Feb 14, 2017 | Blog, Current Events, Logistics, Manufacturing & Distribution, Supply Chain
Consumers will spend $18.2 billion on Valentine’s Day 2017, down from a record-high 19.7 billion in 2016, according to the National Retail Federation.
Did you purchase something sweet for your loved one to mark the special occasion this Valentine’s Day? You won’t be alone in your pursuit to find the perfect box of chocolates. According to staticsbrain.com, 47.5% of consumers celebrating Valentine’s Day 2017 will purchase chocolate or candy, and retailers will sell over 36 million heart-shaped chocolate boxes.
Connection between chocolate and Valentine’s Day
The history of the love of chocolate dates back to the Mesoamerican time, when it was viewed as a luxury item by the Mayan and Aztec upper-class elites. It wasn’t long until the popularity of the confection took over Europe and, centuries later, landed in America. Richard Cadbury created the first box of chocolates in 1868, and from there the commercialization of the treat grew. Chocolatier giants, such as Hersey and Russell Stover, have created a $98 billion industry.
Labor of love: chocolate and supply chain
When you purchase the little heart- shaped box of chocolates for Valentine’s Day this year, remember the labor of love that went into creating those delicious sweets. From the small cocoa farmers in Ghana and Côte d’Ivoire to the cocoa processors to the chocolate manufacturers and retailers, there are many hands that work together before the product reaches you, the consumer. These products — and gift-givers everywhere — rely on the logistics and supply chain industries each Valentine’s Day.
Valentine’s Day 2017 Infographic
Here’s a quick look at how U.S. consumers will spend — literally and figuratively — this Valentine’s Day.
(Made with Canva)
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by Fronetics | Feb 7, 2017 | Blog, Content Marketing, Manufacturing & Distribution, Marketing, Supply Chain
Here are four key takeaways from the manufacturing content marketing report.
The Content Marketing Institute (CMI) has released the results of its annual manufacturing content marketing survey, and there have been some big changes since last year.
Like many businesses in the logistics and supply chain industries, manufacturing companies have been slow to adopt modern marketing principles. Many are hesitant to undertake a content marketing program, whether from lack of time or lack of knowledge about how it works and the benefits.
But that is beginning to change. Manufacturing companies are realizing how much there is to gain from inbound marketing strategies. They’re practicing content marketing, and it’s paying off. In fact, CMI has been conducting the survey among manufacturing operations for the last four years, and never before have the results indicated such progress.
We’ve summarized four of the things you need to know.
4 takeaways from the CMI manufacturing content marketing report
1. Marketers are improving at content creation.
Compared to one year ago, 59% of manufacturing marketers report more success with content marketing for their organizations. A whopping 82% of that group credits this increased success with improved content creation. This means that marketing professionals are getting more efficient at producing higher-quality content.
Related resource: Check out our guide on writing good content.
2. A documented strategy gets results.
This year’s study showed a 72% increase in companies’ documenting their content marketing strategy. Documenting your strategy allows you to set goals, identify benchmarks, and follow through on your objectives. It’s also easier for your organization to come together with a unified, well-rounded marketing and sales strategy.
Related resource: Start crafting your strategy with our content strategy template.
3. Content marketing is becoming a greater priority.
It may seem obvious, but for greater content marketing success, your business must prioritize your content marketing efforts. Of marketing managers who reported increased success last year, 62% credit putting content marketing higher on their priority list. This means communicating with leadership to ensure ample time to produce quality content.
Related resource: Show your bosses these 6 marketing metrics they really care about.
4. Manufacturing marketers are becoming more seasoned with content marketing.
The manufacturing world is gaining experience with content marketing. According to CMI’s survey, more than half (56%) of respondents report that their organizations’ content marketing maturity level is either sophisticated, mature, or adolescent — as opposed to young or “first steps.” That’s an 8% jump from last year. Gaining experience creating, documenting, and implementing a strategy is what ultimately allows marketers to determine what works for their business — and to see sustainable success.
Related resource: See how companies in the logistics and supply chain industries are using content marketing.
Going forward
CMI identified some areas for improvement for manufacturing marketers. Consider these recommendations as goals for your business as 2017 progresses:
- Fully commit to content marketing. It’s time to go all in.
- Focus on clarity in setting goals and documenting results.
- Have a real vision of what success means for your business.
Manufacturing operations have come a long way in the past year with content marketing. As the supply chain industry gets more and more comfortable with this kind of marketing, the possibilities for business development continue to grow.
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by Fronetics | Dec 21, 2016 | Blog, Diversity, Leadership, Logistics, Manufacturing & Distribution, Strategy, Supply Chain, Talent
Women hold just 15% of all executive officer positions within Fortune 500 companies, yet research consistently shows that when women are in positions of leadership, companies perform better. In the supply chain industry, just 5% of top-level supply chain positions within Fortune 500 companies are held by women.
As a woman working within the supply chain industry, I believe that it is important to discuss the lack of gender diversity and point to research highlighting why the industry needs to increase the number of women in all positions, including the C-suite. It is just as important to highlight the incredible women who already are working within the industry.
In 2015 I interviewed Cathy Morris, senior vice president and chief strategy officer at Arrow Electronics, and Mickey North Rizza, vice president of strategic services at BravoSolution. Morris was twice named one of the “Top 50 Most Powerful Women in Technology,” and North Rizza was named a “Top Female Supply Chain Executive.” Both Morris and North Rizza shared how they got started in the industry, and the steps they have taken to get to where they are today.
In 2016 I interviewed Kendrea Durr-Smith, director of global trade compliance at Arrow Electronics, Kelli Saunders, President of Morai Logistics, Hailey McKeefry, editor and chief at EBN, and Barbara Jorgensen, co-founder and managing editor, EPS News. I also invited Tania Seary, founder of Procurious, to share what is happening at her company, and Jennifer Cortez, director of marketing and communications at Transplace, to discuss the role of quality content within the industry.
Here are the most-read women in the supply chain posts of 2016.
It was a “fluke” that Kelli Saunders found the supply chain industry. More than 30 years later, Saunders is president of Morai Logistics Inc., an Authorized Agent of Mode Transportation. Read more.
When Arrow Electronics came across Kendrea Durr-Smith, senior leader of export control audits, training, and communications at Honeywell Aerospace, on LinkedIn, the company was impressed with what she had accomplished in her nine years there. Now Arrow’s Director of Global Trade Compliance for the last four years, Durr-Smith has led a group that is both unique and diverse, and has helped to shepherd in significant changes. Read more.
Data shows that gender equality has improved in recent decades, such as the 15% increase of women working full time in the workforce since 1979. But there is still much progress to be made. As a recent UN Working Group mission to the US to explore discrimination against women found: “In the US, women fall behind international standards as regards [to] their public and political representation, their economic and social rights, and their health and safety protections.” Read more.
Women within the supply chain industry are doing incredible things. Here are some of their stories. Read more.
While there remains a gender gap in the supply chain industry, progress has been made. McKeefry is a clear example of progress. Her internship at EBN in 1990 was a “minority internship,” and today, 26 years later, she holds a leadership position within the company. Read more.
Barbara Jorgensen has more than 20 years’ experience as a journalist, working for leading electronics industry publications such as Electronic Business, Electronic Buyers’ News, and EDN. She is the co-founder and managing editor of EPS News. Read more.
This is a guest post written by Tania Seary, founder of Procurious, the world’s first online social network for supply chain and procurement professionals. Seary shares how she has built Procurious. Read more.
This is a guest post by Jennifer Cortez, Director, Marketing Communications, Transplace. Cortez discusses how Transplace, a North American non-asset-based provider offering manufacturers, retailers, chemical and consumer packaged goods companies the optimal blend of logistics technology and transportation management services, has used content marketing and she offers up 3 tips for creating valuable and compelling content. Read more.
