Labor shortages, supply chain disruptions, high costs, low margins, increased competition, and rising customer/shareholder expectations – are just a few of the challenges facing manufacturers. To help offset the impact of these problems and stabilize the bottom line, many Original Equipment Manufacturers (OEMs) are focusing on enhancing the customer experience while exploring new revenue streams to complement core offerings.
A growing number of these companies are finding the answer in aftermarket services. Supplying the market with parts, repair services, and value-added services such as predictive maintenance contracts, remote monitoring subscriptions, and equipment performance analyticsis a logical extension for many manufacturers.
Aftermarket services may help offset pressures as services can provide stable cash flows in times when economic activity is slow. And it just makes good business sense. According to Deloitte, the average operating margin from the aftermarket business globally is about 2.5 times the operating margin from new equipment sales. From an operator perspective, postponing investments in the latest technology is avalid option for industrial manufacturers in uncertain times. However, maintaining existing equipment or selectively investing in upgrades in production can be a much-needed strategy during uncertain times.
Customer-oriented aftermarket services not only generate additional revenue but also foster long-term customer relationships and increase customer loyalty.
The Industrial Internet of Things
Industry 4.0 / Industrial Internet of Things (IIoT) technologies allow parts and services to be manufactured and implemented more efficiently. Integrating this technology in manufacturing equipment and processes is a big step toward an aftermarket services initiative. The technology provides a proactive approach to dealing with client issues while positioning the company as a solution-providing partner rather than a supplier.
The market is bursting with digital manufacturing technologies, and there is more on the way. This makes it difficult to evaluate, identify, deploy, and fully leverage the best tools and opportunities. It is therefore crucial to partner with an expert IIot smart manufacturing provider. Tapping into this experience and expertise allows OEMs to open new revenue streams and gain a significant edge in the market.
Product Performance Feedback
IIoT technologies allow data to be gathered on product performance throughout its lifecycle providing valuable insights into product usage, performance, and customer behavior. This information helps drive product improvements, identifies design flaws, and enhances overall customer satisfaction. By partnering with an IIoT smart manufacturing provider, OEMs can leverage the data collection and analytics expertise they receive to make data-driven product development decisions.
Remote Monitoring & Troubleshooting
IIoT technology allows manufacturers to remotely monitor and troubleshoot equipment in real time. This eliminates the need forcostly and time-consuming on-site visits, reducing maintenance costs and improving response times. Through remote monitoring, OEMs can proactively identify and address equipment issues, optimize performance, and provide timely support to customers, thereby enhancing their overall experience.
Predictive Maintenance and Improved Reliability
The ability to monitor equipment condition and performance indicators, allows OEMs to implement predictive maintenance strategies. In this way, manufacturers can anticipate maintenance needs and address potential issues before they escalate into costly breakdowns. Predictive maintenance not only enhances equipment reliability but also reduces unplanned downtime, improves productivity, and extends the lifespan of the equipment.
One of the most impactful ways that manufacturers are leveraging IIoT technology is by using of production monitoring software. When monitoring production, equipment operating data is collected directly from machines across the production floor where it is uploaded to the cloud, converted into production-related metrics via sophisticated software algorithms, and communicated in real time.
This data provides management with valuable insights into equipment performance, operator efficiency, production rates, downtime, maintenance needs, and process optimization. With this information in hand, manufacturers can enhance operational efficiency, minimize downtime, reduce maintenance costs, and improve overall equipment effectiveness(OEE).
Faced with challenges on all fronts, manufacturers must rebrand themselves from a commodity-based supplier to a solutions provider. And the wide scope of IIoT technology can make this transformation affordable and profitable for nearly any manufacturer.
The integration of IIoT technology in manufacturing equipment offers immense benefits ranging from enhanced operational efficiency and predictive maintenance to streamlined supply chain management and improved customer satisfaction as well as increased revenue.
IIoT is not a futuristic concept, it is at work on manufacturing floors across industries. Companies must embrace these technologies or risk falling further behind. An article on Medium (Benefits of IoT to Industry and Manufacturing) sheds light on the growing use and benefits of these technologies:
· IoT has enabled manufacturers to increase their average revenue by 28.5%.
· Companies believe IoT and other digital technologies increase productivity by at least 12%.
· The industrial IoT market size is set to reach $124 billion by the end of 2021.
· By 2022 more than 50% of the new business systems incorporated some IoT element.
Your OEM Partner
Today there is more data available to manufacturers than at any time in history - but data alone is not the answer. The right information must be extracted from that data and provided to the right person at the right time. Any flaw in data quality or its interpretation could lead the manufacturer down the wrong path.
By partnering with an IIoT smart manufacturing provider, OEMs can leverage their expertise in data analytics, supply chain optimization, and remote monitoring to maximize the potential of IIoT technology.
At Worximity, our mission is to empower manufacturers to get more done by equipping them with the right data and insights to optimize every stage of their operations. So that’s what we do: we deliver smart manufacturing solutions that motivate people, not just machines and, ultimately, drive profitability by helping you get more done.
As a leading IIoT smart manufacturing provider, we partner with OEMs to optimize IIoT investments, maximize OEE, and provide the quality of manufacturing data to drive growth. Contact us to learn more.