{"id":82020,"date":"2020-03-11T08:28:36","date_gmt":"2020-03-11T15:28:36","guid":{"rendered":"https:\/\/oroinc.com\/b2b-ecommerce\/?p=82020"},"modified":"2023-05-26T05:39:48","modified_gmt":"2023-05-26T12:39:48","slug":"digital-transformation-in-manufacturing-case-studies","status":"publish","type":"post","link":"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/digital-transformation-in-manufacturing-case-studies\/","title":{"rendered":"Digital Transformation in Manufacturing: A Case Study | OroCommerce"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">IDC estimates that digital transformation spending will approach $7.4 trillion in 2023, and the majority of that spend <\/span><a href=\"https:\/\/www.idc.com\/getdoc.jsp?containerId=prUS45617519\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">will be in the manufacturing<\/span><\/a><span style=\"font-weight: 400;\"> sector<\/span><span style=\"font-weight: 400;\">. Additional IDC research suggests that <\/span><a href=\"https:\/\/www.manufacturingglobal.com\/technology\/jump-starting-digital-transformation-manufacturing\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">75% of large manufacturers<\/span><\/a><span style=\"font-weight: 400;\"> are already updating their operations with innovative technologies. If you are in manufacturing, chances are these companies are your competitors.\u00a0 <\/span><span style=\"font-weight: 400;\">If you\u2019ve been sitting on the sidelines, unsure if a digital transformation is right for your company, take a look at how others are successfully utilizing technologies in these manufacturing digital transformation case studies below. You just might find the inspiration you need to start your own digital transformation.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Digital Transformation in Manufacturing is Everywhere<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Thanks to Industry 4.0 and the Industrial Internet of Things (IIoT), manufacturers generate <\/span><a href=\"https:\/\/www.instrumentation.co.za\/8423a\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">more data than in any other industry<\/span><\/a><span style=\"font-weight: 400;\">. Unfortunately, this data isn\u2019t leveraged to make improvements or used reliably by the very technology that manufacturers are implementing. Successful manufacturers are undergoing a digital transformation that shakes up the status quo and implements new ways of processing data in a timely, useful fashion.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In manufacturing, technology has the power to be a disruptive force for an entire industry. Before you start drafting a digital transformation roadmap for manufacturing, you must get everyone in your company on board. That is, if you want to <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/successful-digital-business-transformation-part-1-selling-the-idea\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">sell the digital transformation idea<\/span><\/a><span style=\"font-weight: 400;\"> to upper management, you need positive examples of how other companies approached their challenges by implementing new technology and processes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Manufacturers are creating value through operational effectiveness and product innovation by:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Utilizing machine learning to offer insight into end-to-end processes, optimizing supply chains, and continuously monitoring production activity in real-time.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Integrating their manufacturing network with tools such as ERP, PIM, eProcurement, eCommerce, and CRM for deeper bonds with customers.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Deploying augmented reality to optimize factory operations, improve quality control, and reduce energy consumption.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Adopting digital tools such as modern <\/span><span style=\"font-weight: 400;\">B2B eCommerce<\/span><span style=\"font-weight: 400;\"> platforms to automate sales, streamline interactions with their customers and partners, and ultimately increase sales.<\/span><\/li>\n<\/ul>\n<h2><span style=\"font-weight: 400;\">Case Studies of Digital Transformation in Manufacturing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">As technology revolutionizes manufacturing, both industry leaders and small players find competitive advantages in their niches. By embracing technology on the manufacturing floor and in the back office, manufacturers can digitize all areas of their operation.\u00a0 Here are some digital transformation case studies in manufacturing using technology to bring value to their company and customers.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-82021 aligncenter\" src=\"https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/digital-manufacturing-ai-720x405.png\" alt=\"Digital Transformation Manufacturing AI\" width=\"720\" height=\"405\" srcset=\"https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/digital-manufacturing-ai-720x405.png 720w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/digital-manufacturing-ai-360x203.png 360w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/digital-manufacturing-ai-300x170.png 300w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/digital-manufacturing-ai.png 750w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/p>\n<h3><span style=\"font-weight: 400;\">Digitizing to improve materials and supply chain management<\/span><\/h3>\n<p><b>ThyssenKrupp Materials Services (TKMS)<\/b><span style=\"font-weight: 400;\"> is the largest material distributor and service provider in the western world. They offer turn-key and tailored services in global material distribution, materials management, and supply chain management. TKMS processes over 2 million orders per year for 250,000 customers worldwide.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Challenge<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">TKMS needed to fully utilize data insights through algorithms. Three main roadblocks existed: they didn&#8217;t have the right data, the data quality was questionable, and they lacked the technology to centrally store data in the proper format. The plan was to carefully analyze data and build algorithms to improve materials deployment.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Process<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">A key task was to optimize specific problem areas involving network simulations. For example, TKMS needed to optimize transportation costs and deliver stock without sacrificing service levels. The result was Alfred, an AI solution developed in-house in 2018. Since its original deployment, Alfred has been updated with the domain knowledge and expertise necessary to bring about improvements in TKMS target areas.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Solution<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Alfred (named after the company\u2019s founder Alfred Krupp) was developed with the help of Microsoft&#8217;s global Azure cloud platform. Its <\/span><a href=\"https:\/\/aec-business.com\/thyssenkrupp-presents-ai-alfred-to-manage-their-global-logistics-network\/\"><span style=\"font-weight: 400;\">self-learning algorithms<\/span><\/a><span style=\"font-weight: 400;\"> provide recommendations on stock levels and machinery maintenance models, including malfunction warnings. Alfred recommends which physical sites should be expanded and the sites to close down and identified material substitutions that assist with contract negotiations and bundling. Alfred helps employees with key tasks such as assigning materials to each industry, identifying the best transport route, and recognizing the needs of individual locations.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Results<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Alfred\u2019s decision engine accelerated decision-making processes. It identifies supplying locations for each customer, taking into account all relevant data. Alfred also improves efficiency by simulating the TKMS network setup at any given time.\u00a0<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Transforming customer experience with ERP, CRM, and eCommerce\u00a0<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Since 1930, <strong>Samuel Hubbard<\/strong> has manufactured shoes using only the finest materials and leathers. Today, Samuel Hubbard is famous for its line of sport, casual, and dress shoes. Their products are manufactured and sold around the world.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Challenge\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Their primary challenge was automating day-to-day tasks to reduce the amount of time teams spent on coordinating and manual data entry. Sales teams needed to be focused on generating leads, reaching quotas, and engaging with customers. Improving the overall customer experience, offering more user-friendly B2B purchasing, and harmonizing their B2B and B2C data were additional goals.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Process<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Samuel Hubbard utilized Magento for B2C sales but quickly realized they needed to seamlessly integrate the B2C and B2B while using a unified CRM. <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/customers\/hubbard\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">OroCommerce<\/span><\/a><span style=\"font-weight: 400;\"> offered everything they needed, including a customizable product matrix and a one-step checkout and still allowed Samuel Hubbard to retain Magento for their B2C channel. Implementation involved a complete overhaul of their eCommerce systems and only took 6 months.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Solution<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Samuel Hubbard utilized their B2C data from Magento and integrated it with OroCRM while implementing OroCommerce for their B2B portal. They now had a 360-degree view of all customers. Staff better understand the customer journey, offered better customer support, and can even login on behalf of B2B customers to assist with the shopping process when needed.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Results<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">By investing in a platform that prioritized customer experience, Samuel Hubbard increased sales. A few months after launch, they inventoried 4,500 SKUs and realized an increase of $32,000 in B2B orders per month. Today, Samuel Hubbard shows no signs of slowing down.<\/span><\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"size-medium wp-image-82022 aligncenter\" src=\"https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/shutterstock_772107742-690x460.jpg\" alt=\"Dig Transformation Manufacturing Case Studies Glasses\" width=\"690\" height=\"460\" srcset=\"https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/shutterstock_772107742-690x460.jpg 690w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/shutterstock_772107742-768x512.jpg 768w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/shutterstock_772107742-660x440.jpg 660w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/shutterstock_772107742-315x210.jpg 315w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/shutterstock_772107742-1080x720.jpg 1080w\" sizes=\"auto, (max-width: 690px) 100vw, 690px\" \/><\/p>\n<h3><span style=\"font-weight: 400;\">Improving training with IoT and VR technology<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><strong>BAE Systems<\/strong> is a British multinational defense, security, and aerospace company with over 85,800 employees and worldwide operations. They are one of the largest defense contractors in Europe and one of the largest suppliers to the U.S. Department of Defense, as well as the Australian, Indian and Saudi Arabian militaries.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Challenge<\/span><b>\u00a0<\/b><\/h4>\n<p><span style=\"font-weight: 400;\">As a high-tech manufacturing facility, their main challenge was the correct assembly of complicated batteries on a consistent basis. BAE Systems wanted to leverage augmented reality technology to improve the quality of the finished product, increase assembly speed, and achieve industry compliance.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Process\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">As their production speed increased, BAE wanted to equip line workers with augmented reality glasses to reduce training periods. They sourced HoloLens smart glasses from Microsoft and utilized <\/span><a href=\"https:\/\/www.ptc.com\/en\/resources\/augmented-reality\/video\/bae-systems-mixed-reality-with-ptc\"><span style=\"font-weight: 400;\">PTC\u2019s Vuforia Studio<\/span><\/a><span style=\"font-weight: 400;\">, a software that translates CAD and IoT data into training and instructional AR experiences. PTC designed the software to offer correct modelling of battery assembly instructions on a step-by-step, color-coded basis to maximize efficiency and minimize errors.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Solution<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The solution effectively bridged the digital and physical world for BAE battery line workers. It projects in virtual reality a 3D model of the right battery components with real-time instructions and drag-and-drop functionality to help workers assemble complex products without sacrificing quality.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Results<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">BAE Systems reduced assembly time by 50% and training time by over 40%. Microsoft was retained for hardware and digital infrastructure and PTC provided the software solution and ongoing support to help scale operations.<\/span><\/p>\n<h3><span style=\"font-weight: 400;\">Unifying B2C and B2B sales with one platform<\/span><\/h3>\n<p><span style=\"font-weight: 400;\"><strong>Saltworks<\/strong>, an American salt manufacturer, is the largest of its kind in the world. They import and supply gourmet and artisan salts to the <a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/b2b-ecommerce-for-food-and-beverage-industry\/\" target=\"_blank\" rel=\"noopener\">B2B beverage<\/a> and food industry as well as the health and beauty industry. Their products are imported from over 14 countries and processed for wholesale, bulk, and retail markets.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Challenge\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">In order to manage their pricing schemes, catalogs, and rich content, Saltworks invested heavily in costly add-ons to their legacy eCommerce platform. What they needed was the functionality to cater to their B2C channel while simultaneously offering a tailored B2B experience that differentiated them in a competitive market.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Process\u00a0<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">As they looked to improve their B2B capabilities, Saltworks considered platforms such as BigCommerce, WooCommerce, and Magento 2. Upon investigating OroCommerce, Saltworks realized they could meet over 80% of RFP requirements right out of the box. A new platform and website later, the Saltworks store went live.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Solution<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">After <\/span><span style=\"font-weight: 400;\">implementing OroCommerce<\/span><span style=\"font-weight: 400;\">, Saltworks operates both B2B and B2C websites from a single source of truth. In addition, they can analyze and track both B2B and B2C sales from a single admin panel. This increases data integrity and allows for accurate and reliable syncing to their CRM and ERP systems. Saltworks also added site functions such as a button for customer purchases through Amazon Seller Accounts.<\/span><\/p>\n<h4><span style=\"font-weight: 400;\">The Results<\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The improved B2B and B2C storefront experience and a singular admin panel for back-office staff enabled Saltworks to streamline operations and grow sales. Without the need to perpetually implement costly plugins and extensions, they save time and money.<\/span><\/p>\n<h2><span style=\"font-weight: 400;\">Be the Next Digital Transformation in Manufacturing<\/span><\/h2>\n<p><span style=\"font-weight: 400;\">For many industries, digital transformation isn&#8217;t only about reducing costs and increasing efficiencies, it\u2019s also about embracing an agile mindset and maximizing revenue through unique competitive advantages. If rethinking operating models, adopting new principles, and increasing efficiencies is creating digital fatigue, rely on the services of a <\/span><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/blog\/top-digital-transformation-consulting-companies-list\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">consulting company<\/span><\/a><span style=\"font-weight: 400;\">.<\/span> They are also useful in helping you compile a digital transformation roadmap for the manufacturing industry.<\/p>\n<p><span style=\"font-weight: 400;\">If you want to be a customer-focused company, you need flexible B2B-specific <a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/digital-commerce-for-manufacturers\/\" target=\"_blank\" rel=\"noopener noreferrer\">digital commerce for manufacturers<\/a>. Platforms such as OroCommerce help manufacturers of all sizes to offer customer experiences that stand out from the competition. Join businesses just like yours that successfully completed their digital transformation in the manufacturing industry:<\/span><\/p>\n<p><a href=\"https:\/\/oroinc.com\/b2b-ecommerce\/customers\/saltworks\/\" target=\"_blank\" rel=\"noopener noreferrer\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-82191 size-full aligncenter\" src=\"https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/saltworks-digital-transformation-manufacturing-case-study.jpg\" alt=\"saltworks digital transformation manufacturing case study\" width=\"760\" height=\"160\" srcset=\"https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/saltworks-digital-transformation-manufacturing-case-study.jpg 760w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/saltworks-digital-transformation-manufacturing-case-study-720x152.jpg 720w, https:\/\/oroinc.com\/b2b-ecommerce\/wp-content\/uploads\/sites\/3\/2020\/03\/saltworks-digital-transformation-manufacturing-case-study-360x76.jpg 360w\" sizes=\"auto, (max-width: 760px) 100vw, 760px\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>IDC estimates that digital transformation spending will approach $7.4 trillion in 2023, and the majority of that spend will be in the manufacturing sector. Additional IDC research suggests that 75% of large manufacturers are already updating their operations with innovative technologies. If you are in manufacturing, chances are these companies are your competitors.\u00a0 If you\u2019ve [&hellip;]<\/p>\n","protected":false},"author":38577,"featured_media":82026,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"footnotes":""},"categories":[210],"tags":[],"class_list":{"0":"post-82020","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-b2b-ecommerce"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Digital Transformation in Manufacturing: A Case Study | OroCommerce<\/title>\n<meta name=\"description\" content=\"Explore these prominent digital transformation examples and case studies in the manufacturing industry that will help you drive change at your company.\" \/>\n<meta name=\"robots\" content=\"index, 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