Cloud Manufacturing Software for Engineer-to-Order Manufacturers
Engineer-to-Order (ETO) manufacturers make products “made-to-order” that are highly customized. These products are designed to meet the very specific requirements of their customers which challenge the manufacturers to be flexible and responsive with multiple levels of product variants. The customers pay a premium and are mostly the brand owners of the new product design. The details of the design and development process is initiated usually after receiving the order. Product complexity demands an extended design phase so meeting delivery schedules is a common big challenge faced by ETO manufacturers.
Today’s consumer ecosystem is highly dynamic and demands for everything to be faster, whether it is manufacturers, the internet or fighter jets. Volatile markets see billions in growth and also steady stocks crash within the blink of an eye. Unpredictable buying behavior and little brand loyalty is giving brand owners sleepless nights. Time-to-market is one of the most crucial factors for new products to improve competitive advantage over other players.
In a new market entry, innovators have the advantage of a pioneering product, less competition, better positioning and longer product life. They can also restrict entry of late majority or laggards by increasing the barriers. The result of which being that the innovators and early adopters always acquire the sweet spot for sustained market share and improved margins.
Is faster always better? Well, that is arguable.
An over emphasis on faster time to market can make customization a challenge. But in the present scenario of erratic consumer behavior, product differentiation has become very crucial to brand owners. Late entrants have the ability to overthrow early movers if their product is able to deliver high performance and reliability at a competitive price.
ETOs are constantly under pressure to deliver innovative products and solutions that will disrupt the market. The pressure is also really about delivering the products with a reduced time-to-market. The customization factor typically means lesser volumes and higher variants. In this case, driving profitability through volumes could be difficult in the present competitive global market.For any manufacturer, meeting customer demand is at the helm of all the priorities since it is the key driving factor of business. And, with customization being the USP of ETO manufacturers, it is a challenge to compromise customization over time constraints. Is it possible for these manufacturers have best of both worlds? In our experience, cloud manufacturing software makes it possible, indeed!
The ETO process is complex and has multiple stake holder teams involved, which may be spread across the globe. In order to ensure that customization is done without compromising time-to-market, ETO can follow some best practices like standard parts library, better engineering collaboration on BOM, use modular parts and assemblies, efficient and standard part numbering system, etc. Use of these simple and holistic approaches can result in advantages that are manifold and have a positive impact on the triple constraints of time, cost and quality.
ETO or not, striking the balance between these triple constraints is the key to unlock the problems of time vs customization. Click the image below to learn more about various factors and solutions for solving the time vs customization challenge.
Barry-Wehmiller International offers several solutions in a cloud delivery model such as ERP, CRM, PLM, ecommerce and SharePoint solutions.
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Barry-Wehmiller International (B-WI)
B-WI provides enterprise, engineering, manufacturing automation and technology solutions enabling a connected enterprise by leveraging a global team to provide effective scalable solutions. We are dedicated to execution excellence through proven process methodologies and have assisted organizations of all sizes successfully transform their businesses. Our experience and expertise, crosses multiple disciplines and industries and we offer a wide-variety of solutions to fit your company’s specific needs.
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Another version of this blog was previously published in B-WI’s Manufacturing Pulse Blog (LINK - http://blog.barry-wehmillerinternational.com/) by Pratistha Suhasini on October 25, 2016 - Is Time To Market Killing Your Ability To Serve Your Customers Better?
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