VIEWPOINTS INDUSTRY LEADER OPINION & ANALYSIS Are You Ready for the Digital Decision Makers? v T
he world is in the midst of another major industrial evolution—a digital one that continues to impact manufacturing at levels comparable to those of the driven conveyor assembly line, interchangeable parts concept and computer numerical control (CNC). But most signifi cantly, it has altered the dynamics of the industrial purchasing process.
Customer expectations have changed, especially as younger generations enter the manufacturing sector. Engi- neers today rely on their mobile phones or tablets not only to locate exactly what they need, but also to read online reviews from peers, get technical specifi cations and then proceed to make a purchase. In such an environment, supplier com- panies must have some form of digital strategy in place and command a strong presence both via their website and within various social media outlets. However, that strategy will still require a human element for the true value-added portion of the sale and solid ongoing customer relationships. These days, about 60% of the purchasing decision is
made—regardless of price point—before a person ever contacts the supplier company, according to research from Google and CEB. Ten years ago, that percentage was only around fi ve. Resist the urge to blame it all on the millennials. People of all ages now typically initiate purchase decisions with some level of online preliminary research. In the past, the process often started with a phone call or a catalog. Unfortunately, most manufacturing industry suppliers are now playing catch up because for many years there was a misconception that this sector was somehow exempt. These suppliers have operated under the assumption that the pur- chasing process within the manufacturing industry was too different from that of the retail sales world. In reality, shops now want the same digital experience and capabilities they typically receive in retail. As they experience on the retail side, today’s shops expect information at their fi ngertips. In the case of cutting tools for instance, they want to digitally search for, fi nd and evaluate the exact tool they need. Then, once they’ve made a decision, they want machining parameters/cutting data
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(depth of cut, speeds, feeds, step overs, etc.), a 2D draw- ing and a 3D CAD model that they can download into their shop’s CAM system to begin programming the job. So is this the beginning of the end for human sales
representatives, fi eld technicians or applications specialist? Will the purchasing process become a completely digital self- service one? The answer is no to both questions, but only in some instances and involving certain products. For example, purchasing simple twist drills for making holes in cold rolled steel parts could be done completely online and without human intervention. However, change the application to titanium parts and holes that need drilled and chamfered in one operation at a speed of about three seconds per hole, and highly experienced in-person applica- tions support along with a custom tooling solution will most likely be needed.
Today, about 60% of a purchase decision is already made before a person even contacts a supplier.
It should also be noted that many shops continue to de-
mand regular visits from their suppliers. For these shops, the digital experience is unable to truly compete with in-person applications support where supplier fi eld representatives and applications technicians are considered and used as exten- sions of the shop’s engineering capabilities. In these instances, experts from the supplier companies
are expected to maintain a familiarization of the shop’s ma- chining operations and keep it up to speed on new solutions and technologies that may improve those operations. Such an all-encompassing level of value-added service is tough, if not impossible, to effectively provide digitally alone. As a fi nal note, suppliers should avoid an either-or sce- nario when it comes to digital and in-person interactions. A combination of both provides shops with all the best possible ways to not only streamline the purchasing process but also help improve manufacturing operations.
Rob Keenan President
Seco Tools LLC
www.secotools.com/us
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