Electrical Equipment Manufacturers Excel at Mixed-mode Manufacturing

Nearly half (48 percent) of electrical equipment manufacturers use an automated, integrated system to manage their mixed-mode manufacturing processes, according to a 2009 research report by software maker Cincom Systems. This is 18 percent more than the composite average of comparable industries. An automated, integrated system often results in reduced inventory cycle times and costs.

"In the face of accelerating product lifecycles compounded by a continual increase in product complexity, electrical-equipment manufacturers are finding mix-mode manufacturing strategies very effective in staying competitive," says Louis Columbus, co-author of the report. "Staying demand-driven, close to the customer and capable of meeting or exceeding their expectations is critically important in how competitive electrical-equipment manufacturing is becoming. Mixed-mode manufacturing gives companies the ability to flex in response to customers' changing expectations and needs."

OPPORTUNITY FOR ADVANCED ANALYTICS
The majority (86 percent) of electrical-equipment manufacturers rely on a combination of direct and indirect (distributors and dealers) sales channels. That's 15 percent more than the composite benchmark. Yet, none of the survey participants rely on advanced analytics and lead escalation to 'learn' which channel partners can deliver the best sales performance by each type of lead. Instead, most (59 percent) rely on basic systems for tracking opportunities and responding to them, including following defined processes.

"Clearly multichannel management is a major issue for electrical-equipment manufacturers, and making channels effective begins with an aggressive approach to educating resellers and giving them the tools to be effective at selling," says Columbus. "There is significant room for improvement in managing sales funnels, earning trust and creating loyal customers based on the results of our research."

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Cincom Enterprise manufacturing

2009 Electrical Equipment Industry Survey Report