How to build additional or alternative revenue streams

Posted on 11 Jul 2017 by The Manufacturer

Manufacturers are facing a paradigm shift, which means that delivering a product is no longer enough to gain an advantage over your competitors, you need alternative revenue streams.

Money, revenue, finance, banking, imagine courtesy of pixabay
In order to open up all of the possible revenue streams that exist for manufacturers, a robust software solution providing real-time access to data is paramount – image courtesy of Pixabay.

Discrete manufacturers are facing yet another shift in the industry. The traditional method of delivering a product is no longer enough for a competitive edge.

Customers’ buying habits are continually changing due to technology developments, globalisation and financial instability. They expect a business to offer packaged solutions, rather than simply supplying the physical product.

Demanding strong and reliable service plans has become more popular and the market itself is more complex. Price alone isn’t enough for a competitive edge.

Discrete manufacturers face challenges from developing customers with significantly lower production costs. The solution needs to be flexible and scalable with a quick set up for quick response to new opportunities and changing needs without protracted Capex discussions.

Services such as design, installation, training and on-going services help discrete manufacturers differentiate themselves from cheaper overseas competitors and deliver an end-to-end solution.

In order to open up all of the possible revenue streams that exist for manufacturers, a robust software solution providing real-time access to data is paramount. Being able to have eyes on the entire value chain means that firms can more accurately charge for their products and services, opening up the opportunity for new conversations with clients and demonstrates how customers are using their products.

Capturing information that can be used to measure a products performance, pre-empt repairs and suggest remedial actions offers the opportunity to create a whole new service-driven business model. Modern ERP solutions give manufacturers the chance to collect all of the data necessary to transform their organisation and free people up to focus on what is really important to the business.

To find out how project engineering firm, Tronrud Engineering, managed to broaden its product offering and increase revenue thanks to modern ERP, download the case study below:

Error: Contact form not found.