Industrial manufacture can be done at varying scales, from relatively simple household machinery, to incredibly large and complex industrial solutions. This range of manufacture often sees a huge variety of pieces and parts required, and pricing each finished product can be further complicated by outside factors such as tax, shipping, etc. This can lead to industrial manufacturing costs being difficult to calculate, complicated to manage, leading to a time consuming quote process. In this article, we are looking at the current state of the industrial manufacturing industry, the key challenges being faced when it comes to pricing, and how the right tools, such as Customer Relationship Management (CRM) software and Business Process Automation (BPA) can effectively simplify the process.
The manufacturing industry as a whole has faced a number of challenges in recent years, such as labour shortages, supply chain issues, and economic pressures, however, Statista reveals that the value of the worldwide manufacturing market is expected to grow by a CAGR of 3.56% between 2024 and 2028, and the number of enterprises in the market is projected to amount to 7.11m in 2024 with a compound annual growth rate of 14.17% between 2024 and 2028.
The industry is still troubled by the time it takes for production materials to be delivered once sourced and ordered. Deloitte found that the average delivery time for production materials peaked at an all-time high of 100 days in July 2022, but have been improving, reaching an average of 87 days when calculated in August 2023, however they have yet to return to levels seen before the COVID-19 pandemic, where the average was 63 days.
Industrial manufacturing has been influenced by trends in sustainability, attracting (and maintaining) new talent, and heavy investment in new technologies, as companies seek to grow and evolve amidst turbulent times and global situations that have impacted their ability to gain materials, innovate new products, and deliver finished products.
Pricing processes for industrial manufacturing are often dependant on the size and scale of the project, but generally fall into one of four types:
Each of these methods have their own pros and cons, and their usage is largely dependant on the industry and business model that the company is dealing with. Cost Plus is an overwhelmingly popular solution for many manufacturing firms, although value based approaches are becoming more attractive solutions for some.
Some of the key concerns and challenges which are being faced in the industrial manufacturing industry for pricing include:
These challenges are often the result of outdated or bloated systems, that are no longer capable of handling the intricate requirements that come from having potentially thousands of products, or wide varieties of materials needed to complete individual manufacturing orders.
TEB Apps has been designed to provide support to manufacturing businesses with intuitive systems, that easily integrate and provide much needed functionality, from pricing and multiple currency support, to quote templates and clear visualisations of analytics.
In order to simplify the pricing process for your industrial manufacturing business, you need to be supported by the right technology and tools. BPA is extremely effective for ensuring complex and technical aspects are correctly accounted for, and that your programs are gathering, formatting, and utilising the right data in the right places.
The right CRM and operational tools allows for transparent operations, clear process formats, and brings benefits such as being able to:
Supporting your business with a strong data-driven architecture and a CRM that streamlines your manufacturing processes can allow you to spend more time and resources on growing your company, increasing your customer base, and making more sales.
Industrial manufacturing often involves buying materials or parts from different parts of the globe, and you need to be able to track your purchases, record the costs (including taxes, shipping, and other fees), and ensure that your manufacturing floor can make the right items at the right time.
Technology that supports you in doing this is a business critical decision, and one that you should not take lightly. With automation taking on repetitive tasks (and ensuring they are always done the same way), you can also improve your ability to be compliant with legal obligations, and ensure data protection as well.
Combining automation and a CRM solution, such as that provided by TEB Apps, can position you to be at the competitive edge, and increase your ability to outperform your competitors.
TEB Apps gives your business access to effective, streamlined pricing options. As an industrial business, you can set your specifications according to your needs, such as pricing based on the grades of raw materials you are purchasing. With TEB Apps you will:
Book a demo today and win more deals with less effort! It is time to step into the future of automation.
