Markforged has launched the on-demand parts manufacturing platform Digital Source, which it describes as “an on-demand parts platform built to enable the licensing and 3D-printing of manufacturer-certified parts when and where they are needed, without the cost or hassle of physical inventory management.”

Jeremy Haight, principal engineer at Vestas Wind Systems A/S, a global company that manufactures, installs and services wind turbines for sustainable energy systems, says the Digital Source on-demand platform has enabled Vestas to quickly print spare parts when needed to maintain operations and minimize downtime.

For BMF GmbH, a manufacturer of sandblasting machines designed with 60 components that need to be replaced periodically, the 3D-printing service provides the option to print replacement parts at customer sites.

“The component can be printed on-site the moment a failure or wear is detected,” BMF CEO Ronny Bernstein says.

Markforged also says Digital Source allows companies to upload digital part designs they can then license to their customers, distributors and contract manufacturers.

“Once uploaded, Digital Source end-users will have the ability to license the right to print parts on-site or through a growing network of [3D-printing] service providers,” the company says.

“Parts can be digitized and printed at the time and point of need without the need to be manufactured in advance, shipped and stored until needed,” Vestas CEO Shai Terem says.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Geert Leeman

The CRM software market value is anticipated to increase from ~$64B in 2022 to ~$146B by 2029, and 91% of top businesses are investing in AI — with that percentage expected to increase.

CX and B2B trends

In the fast-evolving landscape of customer experience, the influence of AI stands as a central force, with data-driven innovations ushering in a new era of personalized and interactive experiences. Businesses are gearing up to navigate a dynamic terrain where industry-tailored solutions, connected enterprise insights, and AI-driven personalization converge to create the ultimate customer experience.

Let’s look ahead to 2024 and examine my predictions for how certain technology advancements will elevate customer experience and boost business revenue and profitability.

1. A focus on industry-tailored solutions will improve business outcomes

When it comes to CX — and B2B — trends, it’s not one-size-fits-all. What works for a manufacturing company may not be best for a retailer.

“Generic software often comes with a plethora of features, many of which might be irrelevant for a specific industry,” Kamran Khan, an IT and business development specialist, said. “Tailored solutions, on the other hand, are laser-focused on the exact requirements of an industry, ensuring that every feature and function is relevant and adds value.”

Industry-tailored CX solutions are designed with a deep understanding of a particular industry’s specific challenges and dynamics. This understanding ensures that the CX strategy addresses customers’ unique needs and pain points  within that industry, leading to more effective and relevant customer interactions. This approach improves customer satisfaction, loyalty, and a competitive edge in the marketplace.

2. Unified CX will overtake the siloed approach to customer satisfaction

Nearly two decades of research by multiple analysts shows that anywhere from 20%-70% of CRM projects fail. Why? These systems concentrated on connecting sales, service, and marketing rather than focusing on integration across the entire enterprise.

With an intelligent approach to customer experience, all teams across the enterprise — service, marketing, sales, logistics and operations — speak to each other. Organizations can connect insights like fulfillment business processes with insights from customer touchpoints, like service and commerce. This approach leads to a truly unified and exemplary experience for the customer.

3. AI will drive personalized customer relationships and efficient business processes

In my experience, brands are more likely to make a sale to an existing customer and are significantly less likely to sell to new customers. Therefore, it’s more expensive to attract a new customer than it is to retain an existing customer.

With AI capabilities embedded within CX technology, businesses significantly increase their chances of improving customer retention. By analyzing the full breadth of enterprise data in addition to customer data, such as past purchases, service history, and industry preferences, businesses can provide a better experience for their customers overall. As a result, this drives revenue and increases a business’s bottom line.

Additionally, with business AI, the B2B space can take customer relationships to a new level. We’re finally seeing a pivot from input-heavy, output-poor systems to systems in which business professionals have insights at their fingertips that truly work for them. They’re able to do their jobs more effectively, and ultimately, make their customers happier and more loyal. In all, integrating AI-based technology into CX strategies drives personalized customer relationships, more efficient operations, and empowered decision making at all levels in the organization.

Wrapping up, in 2024, I predict that the B2B market will undergo a dynamic and engaging transformation of customer experience. Organizations that prioritize industry nuances, break down data barriers, and harness the power of AI will find themselves well-positioned to thrive in this dynamic and competitive landscape. The forthcoming year promises a new chapter in B2B interactions characterized by innovation, efficiency, and a scalable customer-centric focus.

Geert Leeman is the chief revenue officer of SAP CX, a software line of SAP SE.

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Paul do Forno

The impending surge of 16,000 SAP S/4 upgrades spotlights the back office as a pivotal and well-understood element foundational to business operations. Yet, within this widespread acknowledgment, a strategic opportunity surfaces: the front office, though often overshadowed, emerges as the key to unlocking new revenue and seizing untapped opportunities.

While the back office provides core capabilities, the front office presents a new pathway for businesses to venture into innovative realms or channels, driving growth and capitalizing on newfound potential.

Navigating the SAP S/4 wave

The heartbeat of this transformation lies in the need to upgrade back-office systems, specifically SAP S/4HANA. These SAP updates are triggering a surge in upgrades, aligning with the broader trend of technological advancements. The focus is not solely on customer-facing roles but encompasses the entire operational spectrum. Many companies find themselves at a crucial juncture — a crossroads that demands a holistic approach to updating both the back and front office.

The role of the back office in supporting and facilitating seamless operations and financials is paramount. Upgrading and maintaining these systems is not just about internal efficiency; it is a critical move to ensure customer satisfaction and drive overall business success. The synergy between the back and front office becomes evident as companies explore streamlining their back-office processes. Synchronizing the upgrade of the front office can help to pay for the back-office updates, ensuring a cohesive ERP system.

The front office, encompassing marketing, sales, service, and commerce, is the face of the company. Recent technological strides enable the synchronization of front- and back-office functions. This synchronization eradicates manual data entry, minimizing errors, and ensuring real-time access to customer data for the front office. Such streamlined operations facilitate personalized service and swift responses to market changes.

B2B commerce stands as a linchpin in the front office, seamlessly connecting with the back office. Think of B2B commerce as the digitization of B2B sales. The omnichannel view of B2B commerce, spanning direct commerce, B2B marketplaces, procurement commerce, and sales-assisted channels, is critical. This importance is further emphasized by a Forrester Research study projecting a 50% increase, reaching $3 trillion in B2B ecommerce over the next four years.

B2B Commerce: The Catalyst for Front-Office Growth

Today, customers prioritize companies who offer digital tools — officially putting the paper catalogs on the back burner. And if companies want to remain competitive and grow, they will need to have robust self-service options that users can not only opt into, but a system that allows for a smooth and seamless experience. And a robust, well-oiled front office has the potential to unlock more revenue, covering the investment made in upgrading both back- and front-office systems.

When companies firm up their front office by tapping into the array of digital tools that help them sell across channels — Omni-Channel B2B Commerce — the potential is limitless. They can provide an end-to-end digital sales experience that empowers them to more efficiently and effectively serve their customers through:

• Direct commerce / Customer Portal / Dealer Portals – a website that supports marketing and catalog management online. This also includes mobile responsive design.
• B2B marketplaces – a company’s own and third-party marketplaces in which companies can sell both their own products and facilitate others to sell via online marketplaces.
• Procurement commerce – a platform that facilitates buyers to access a supplier’s storefront from within the buyer’s own procurement application.
• Sales Assisted – allows direct connection with customers through call centers and online chats to complete orders or resolve any issues in a timely manner.

As B2B commerce is expected to grow over the next four years, digital transformation should be seen as a growth channel for any B2B company.

Success has been proven through a manufacturer’s recent digital transformation. While the investment was 24% for the front office, it resulted in 57% of the overall business value case in both the front and back office.

By investing in their front office, companies can help pay for their back-office upgrades — continuing to fuel strong revenue growth, building strong relationships with their customers as well as creating new efficiencies across their business, ultimately leading to easier sales processes and increased return of investment (ROI).

About the author:

Paul do Forno is the managing director of Deloitte Digital’s Commerce Practice.

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Laura Ramos, vice president and principal analyst, Forrester Research

That’s the advice from Forrester Research in the report, “Predictions 2024: B2B Marketing, Sales, and Product,” by vice president and principal analyst Laura Ramos and other Forrester analysts.

Forrester advises that B2B marketing, sales and product teams “face a turbulent year ahead, full of partner-centered growth and productivity ups as well as demand, technology and regulatory/legal downs.”

It asserts that generative AI may broadly impact all teams across marketing, sales and product, “with a mix of both success and failures” throughout 2024.

But Forrester adds: “Teams that double down on customer analysis and understanding, address buyer preferences, and enrich collaboration with [channel] partners will find the ride exhilarating.”

GenAI tops the B2B challenges

Topping off the challenges ahead is generative AI, which Forrester predicts will sift through customer data for insights that will direct one in five new product launches. But while GenAI will help make 2024 a bumper year for new products, Forrester warns that “thinly customized GenAI content will degrade purchase experience for 70%” of B2B buyers by failing “to demonstrate an understanding of their organization’s business conditions of needs.”

To deepen understanding of B2B buyers, Forrester says “B2B marketers should invest in fresh buyer and customer persona interviews and use the transcripts to guide AI-generated content personalization efforts,” adding: “We anticipate that one-third or fewer will do so, but those who do will see their investment in AI-generated content pay off.

Among its other 2024 predictions, Forrester says half of B2B companies will boost partner ecosystem technology investment. It suggests those companies consider collaboration in such areas as GenAI, co-marketing and partner-led marketplaces.

Paul Demery is a Digital Commerce 360 contributing editor covering B2B digital commerce technology and strategy. paul@digitalcommerce360.com.

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Emily Newton

Integrating a supply chain with a maintenance, repair and operations program requires dedicated effort and critical skills. People who excel in this role must have strong digital capabilities and be open to using various technologies — including emerging ones.

Here are four top skills that will set people in this industry apart from their peers and ensure success in their careers.

1. Artificial Intelligence

Artificial intelligence has rapidly emerged as a notable technology, particularly as people grapple with item shortages and demand fluctuations. However, anyone who currently works with MRO-integrated supply chains or plans to soon should get some AI skills under their belt and progressively work to improve their competencies.

Predictive algorithms help professionals know which supplies to order and when, greatly reducing the chances of stockouts. Executives are also realizing AI is essential to their operations, which suggests they should see it as an in-demand skill when hiring new team members.

A 2023 poll of C-suite members found that 90% were using AI to achieve better operational resilience. Additionally, 88% depended on it for supply chain enhancements. The potential uses span from interacting with a chatbot to place an order to getting predictions from algorithms about when specific products will sell out or start to run low.

2. Data Analytics

Data analytics skills are also proving essential. Professionals in these roles use them to evaluate the sensor data associated with a piece of equipment or estimate when the current stock of a vital component will be depleted. Knowing how to use data analytics platforms is increasingly important as the number of products moving through supply chains rises.

For example, during a single year, the supply chain for technology brand Lenovo included 2,000 suppliers working to deliver more than 130 million devices. An MRO-integrated supply chain specialist might use a data analytics tool to determine the most reliable suppliers according to their performance across several key performance indicators.

Even if someone doesn’t have strong data analytics skills, they can set a goal to gradually improve in that area. Besides making them more of an asset to their employers, this plan could increase job satisfaction by providing a well-defined career path and growth opportunities. Notably, a 2023 survey found that 84% of employees said clear career paths strengthened their commitments to employers.

3. Cloud Computing

Many leading industrial apps run in the cloud. Authorized users can access them from anywhere, making it easy to check statistics, communicate with stakeholders and more. People also use the cloud to store paperwork or streamline its distribution, such as to approve repairs on specific pieces of equipment or keep track of when maintenance occurred.

Another handy thing about cloud computing platforms is they support remote working arrangements. Even if someone doesn’t work from home all the time, it’s increasingly likely they will eventually. One 2023 survey of Americans found they spend 27% of their workdays at home on average.

Cloud computing tools have some similarities, but people must also learn to work with brand-specific features. It’s helpful for those working with MRO-integrated supply chains to dedicate themselves to learning the ins and outs of cloud software. That might mean using built-in help guides or signing up for provider-offered online courses.

People who grow their skills might spend time mentoring peers or encouraging colleagues to embrace the organizational changes that cloud computing products often bring. This enables employees to become crucial parties that show others how these apps can improve their workflows.

4. Project Management

A continuing commitment to digital skill growth will also put MRO supply chain professionals ahead of their peers. Roles increasingly include time spent with various internet-connected tools and platforms, and many suppliers and distributors prefer digital-only transactions.

Digital project management tools simplify tracking what responsibilities people must handle and when. They also enable smoother communication between various stakeholders, allowing people to comment, upload images or documents, and assign subtasks to other parties.

Once people improve their cloud computing skills, they’ll likely find significant similarities associated with using project management tools. That’s because most of them work in the cloud to make it easier for people to get things done in on- and off-site locations.

Commit to Ongoing Growth

These four skills are among the most necessary in today’s fast-paced and digital-centric world. Anyone involved with MRO-integrated supply chains should stay aware of emerging technologies that could become more prominent in their industry.

Some companies are experimenting with augmented reality to support workflows and improve training. Others use mobile robots to carry supplies around distribution centers and other large facilities. People should pay attention to what’s new in their companies and the industry and be ready to capitalize on new learning opportunities. That will help them prepare for whatever’s ahead while setting good examples for others, bringing their company to the forefront.

About the author

Emily Newton is an industrial writer reporting on how technology disrupts industrial sectors. She’s also the editor-in-chief of Revolutionized, covering innovations in industry, construction, and more.

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Susanne Adam

The wholesale distribution industry predominantly comprises mid-sized companies that offer innovative products and services. However, many of these companies have slowly adopted digital marketing and sales strategies leaving them behind in generating business in today’s digital world. Before the pandemic, in-person visits were the cornerstone of effective sales for wholesalers, but the landscape has rapidly transformed.

Today, businesses need to master combinations of virtual and face-to-face interactions with customers — the so-called Hybrid Sales Model.

There will be no way back to the old days; the future of sales is hybrid as stated by  McKinsey. Buyers are now used to digital sales and communication channels, backed by a new digital-savvy generation of employees. Wholesale distributors and other B2B companies must cater to customers who favor digital purchasing and opt for video calls over physical meetings while satisfying those who still prefer in-person interactions.

Embracing hybrid sales presents several challenges. Digital communication methods, including video meetings, necessitate distinct skills compared to traditional face-to-face meetings. Video meetings tend to be more focused and often involve presentations, whereas in-person meetings allow more interactions and discussions. Facial expressions, body language, and emotional signals require conversation partners to adjust their behavior accordingly. Replicating this level of understanding in online meetings proves challenging, if not impossible.

To cultivate digital sales skills, businesses have established specialized training and coaching programs. These initiatives focus on improving skills like active listening, effective written and verbal communication, use of messaging and meeting tools, and leveraging social media platforms. Other, simpler challenges, such as a stable internet connection, can significantly impact sales success when not managed accordingly. Connectivity issues disrupting sales meetings create a negative impact if they occur too frequently.

Recent years have led businesses to realize that finding the right balance between virtual and in-person interactions is no simple task. Questions to consider include how much digital communication is appropriate for a certain customer and whether or not the customer’s expectations are clear regarding the communication channels being used.

To address these considerations, some companies have created strict procedures for the entire customer journey to address these considerations. These protocols define which interactions are digital, which in-person, and who is responsible.

For instance, one protocol might determine that contract negotiations must happen face-to-face. Fixed procedures are advantageous as they allow better planning and setup of clear organizational responsibilities and communication lines. However, this approach might fail when those procedures are not differentiated enough, neglecting the need to address different customer groups with other methods. Sales reps should be allowed to react flexibly to address the needs of specific customers.

Similar to other sales activities, customer analytics and segmentation are key success factors for a successful hybrid sales approach. Relevant characteristics for clustering customers in this manner are the customers’ willingness to engage digitally and their preferred channels.

Depending on strategic goals, characteristics like customer revenue or size can further refine these groups, to which guidelines are assigned. Examples for such guidelines are “in-person contacts with large customers only,” “lead generation mainly digitally driven,” or “small customers use digital channels only.”  These guidelines streamline client interactions across the whole organization, benefiting the sales team and the marketing and support teams.

Once a company has mastered the challenges, it can take advantage of a hybrid sales strategy. In combination with internal sales reps managing digital meetings, reduced travel time for external sales teams frees up space for additional sales activities by external sales teams. Incentivizing less profitable customers to move to digital channels reduces sales costs.

Moreover, innovation-minded customers perceive vendors as innovative when  they meet the customers’ expectations regarding modern user experience.

Businesses must proactively define their hybrid sales strategy to navigate both digital and in-person channels effectively. Armed with a clear understanding of customer needs, potential challenges, and strategic objectives, companies can manage hybrid sales successfully and utilize them as a lever for growth.

Susanne Adam is a principal solution manager at SAP for wholesale distribution. She has worked with client companies on customer engagement strategy and various projects in the wholesale and retail industry. Follow her on X @susanneadam3.

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But any boost will not be now, as quarterly total and ecommerce sales decreased yet again for Lands’ End. For the second quarter ended July 28, revenue decreased 7.9%. That’s down to $323.3 million compared with $351.2 million in the second quarter of fiscal 2022. Net loss was $8.0 million compared with a net loss of $2.2 million in the second quarter of fiscal 2022.

Lands’ End ranks No. 79 in the Top 1000. The database is Digital Commerce 360’s ranking of the largest North American online retailers.

Lands’ End ecommerce

Global Lands’ End ecommerce net revenue was $218.7 million. That’s an 8.7% decrease from $239.7 million in the second quarter of fiscal 2022. Lands’ End U.S. ecommerce sales decreased 3.6% to $22.8 million from $36.4 million in the prior year. That was primarily driven by continued promotional productivity within swim and adjacent product categories more than being offset by lower markdown inventory sales, the retailer says.

U.S. ecommerce accounted for 7.1 of all Lands’ End sales compared with 10.6% of revenue in Q2 fiscal 2022.

In the wake of declining sales, Lands’ End will focus on new digital technologies such as artificial intelligence and analytics to identify better trends in buyer behavior, says CEO Andrew McClean.

“As a digitally native company, we are prioritizing our focus on innovation to improve execution across the enterprise, including taking advantage of emerging technologies, like generative AI,” he says. “Whether in customer service and engagement, data analytics, decision-making or go-to-market strategies, our increasing use of these technologies is driving efficiency and effectiveness in our work.”

One new application is a mobile app with integrated AI capability, the retailer says.

“We have developed an internal app for our merchants and designers that uses ChatGPT to analyze our customer data to identify gaps in our assortment to improve buying decisions. We also made progress this quarter on our efforts to place the customer at the center of our decisions,” McClean says.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports.

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But a new survey of consumer brand manufacturers from Rockwell Automation shows that CEOs are counting on digital technology and transformation processes to solve challenges, gain efficiency and improve sales.

Lee Coffey, global strategic marketing manager, CPG, Rockwell Automation

“The consumer packaged goods industry has been hit hard by a perfect storm of challenges over the last year, with disruptions in the supply chain, a shortage of workers, and inflation all contributing to a dramatic impact on businesses,” says Lee Coffey, global strategic marketing manager, consumer packaged goods, Rockwell Automation. “Adapting to these changes requires agility, innovation, and a willingness to embrace new ways of working to survive and thrive in these uncertain times.”

Technology is increasingly being seen as the answer to many of the challenges CPG leaders face, Rockwell says. The single most common way CPG leaders are mitigating risk — both internally and externally — is by adopting innovative technology, according to the survey of 216 CPG manufacturers across 13 countries.

Specific findings include:

• 52% of CPG manufacturers see inflation as their biggest external obstacle in 2023.
• 42% of businesses are accelerating their digital transformation to keep pace with competitors, while 44% are doing so to improve quality.
• On average, businesses in CPG invest just over one-fifth of their operating budget on technology, with the top three investments in cloud technology (45%), supply chain planning (42%), and cybersecurity (41%).
• 57% of businesses are using software to automate processes and 63% are using it to better track corporate data. Notably, 48% of leaders are increasing process automation to address labor shortages.
• 90% of CPG manufacturers believe they will maintain or increase the size of their workforce because of technology, with 38% expecting to repurpose their existing workforce and 29% assuming they will hire more workers due to technology adoption.
• In practice, 31% of CPG manufacturers report smart manufacturing initiatives have helped deal with the impact of the COVID-19 pandemic and keep pace with market transformations.

“Technology is increasingly being seen as the answer to many of the challenges CPG leaders face,” Rockwell says. “The single most common way CPG leaders are mitigating risk — both internally and externally — is by adopting new technology.”

Sign up for a complimentary subscription to Digital Commerce 360 B2B News, published 4x/week, covering technology and business trends in the growing B2B ecommerce industry. Contact Mark Brohan, vice president of B2B and Market Research Development, at mark@digitalcommerce360.com and follow him on Twitter @markbrohan.

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Marketers use a range of digital marketing tactics that vary in effectiveness. While marketers rank the staple digital marketing tactics — paid search and email marketing — as top revenue drivers, the other channels can be hit or miss.

Digital Commerce 360’s ninth annual marketing survey shows insights into what is happening with digital marketing budgets, what approaches are effective, and the adoption of growing tactics like AI and values-based marketing.

Download our July Strategy Insights Report to learn more about the retail marketing world, with including these articles written by Digital Commerce 360 editors:

• “Why wacky ads work on TikTok, while sober is better for Facebook” investigates how marketers cater to different age groups on the various social media channels, and when they say it’s OK to repurpose content across platforms.
• “9^th annual digital marketing survey: Retailers increase digital marketing spend” showcases results from the survey including which marketing tactics retailers use and which ones they rank as the most effective. Plus, insights into top digital marketing challenges and marketers using artificial intelligence, influencers and cause-based marketing.
• “Retail media networks promise high returns for brands that can handle the workload” dives into the complexity of retail media networks and how that can make it difficult for smaller brands and retailers to compete with the big players.

Compliments of: Partnerize, melissa

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