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THE JOURNEY TOWARD CUSTOMER CENTRICITY

Manufacturers now realize that product or innovation-based differentiation is no longer the source of competitive advantage per se. They can see they will have to build their competitive advantage around the customer centricity triad.

PRODUCT

54% of manufacturers will use the ability to ramp up production for new products as a KPI for their factories

DELIVERY

64% of manufacturers will use perfect order, on time, and in-full delivery to customers and flexibility/ability to fulfill customer needs as a KPI for their factories

PRICE

70% of manufacturers will use production yield/manufacturing cycle time/product costs as a KPI for their factories

illustration illustration illustration illustration 54% 64% 70%

This strategic consideration is now impacting manufacturers to their core. The production operations are gradually becoming increasingly focused on customer fulfillment.

TREND TOWARDS mass configuration (MTS, MTO/ETO, Make-to-individual), TREND TOWARDS PROFITABLE PROMIXIMITY SOURCING (International: Highly verticalized, few large plants, Multinationa: Multiple regional plants, Transational: Push-pull with small plants proximate to demand