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.”

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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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Despite the rapid pace of new ecommerce technology, such as headless commerce, and mounting pressure from digital-first customers, progress is mixed at best for many companies, according to a new survey of 600 manufacturing executives from Epicor Software Corp.

For example, only about 44% of manufacturers are spending more on new digital technologies, while 49% will keep paying the same amount as the prior year.

Although nearly half of all companies describe their company as “somewhat” to “very” modern, only 13% are fully digitized. Nearly 60% still use a mix of ecommerce, electronic business software and paper and manual procedures to conduct business.

“The shift to all-digital workplaces is slowly happening,” the report says. “31% (of manufacturing companies) are still using all paper.”

Other findings include:

• Big data: 41% of companies are gathering and analyzing data company-wide to gain insight into operations.
• Robotics and artificial intelligence: 36% of organizations are using robots and AI to automate manufacturing.
• Augmented reality: 32% of manufacturers are using AR to better see, understand and track data to improve manufacturing efficiency and productivity.

“Those who say their company is ‘very modern’ are more likely to say their company is eager to embrace new technology,” the report says. “Those companies who say their company is not very modern are more likely to say their company is hesitant to embrace technology.”

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And that performance came against the backdrop of labor shortages, supply chain disruption and the impact of more than two years of the COVID-19 pandemic. U.S. manufacturers and distributors grew total B2B sales in 2022 to $14.89 billion. That is up 15.4% from $12.98 billion in 2021, according to the U.S. Department of Commerce.

B2B distributor and manufacturer sales grew robustly in 2022 overall, but most of the growth took place early in the year. By the end of the fourth quarter, sales growth had slowed by about half.

2023 Ecommerce in Manufacturing & Distribution Report

Analysis of US manufacturers and distributors and the state of B2B ecommerce. Includes over 10 charts, new data on digital growth, an extensive overview of each industry, and case studies on Caterpillar, Amazon Business, Global Industrial and more.  

View Details

B2B distributor sales

Last year, the sales that occurred on B2B electronic channels, including electronic data interchange (EDI) totaled $9.14 trillion, a 19% increase from 2021. More important, B2B ecommerce grew faster than total B2B sales and accounted for 13% of all manufacturing sales.

Manufacturers and distributors both grew online last year, but distributors grew much faster than manufacturers. All in, manufacturers grew B2B digital commerce about 15% to $623.3 billion in 2022 from $543.3 billion in 2021. Distributors, meanwhile, grew year over year much faster. Their B2B ecommerce sales growing 25% in 2022 to $1.4 trillion from $1.1 trillion in 2021.

Digital-first customers are transforming the B2B industry and forcing manufacturers and distributors to rethink the way they conduct business. Companies that were once hesitant to embrace B2B ecommerce are now developing new initiatives, updating strategies and upgrading their technology with new cloud-based applications like  headless commerce and AI.

As B2B ecommerce continues to accelerate in 2023, it’s critical for manufacturers and distributors (and the technology vendors that serve them) to find new digital opportunities and solutions to overcome challenges in the market.

Here is more detail on Digital Commerce 360’s 2023 Ecommerce in Manufacturing & Distribution Report.

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In underground mines and tunneling projects, Normet’s new SmartDrive battery-electric-powered and massive mining and construction equipment comes with benefits similar to those of modern electric cars: “one-pedal” driving and relatively sleek designs emanating from the lack of traditional gearboxes and driveshafts.

Normet’s drive into electric vehicles coincides with its foray into digitalization — two developments the Espoo, Finland-based company highlights in its 2022 annual report as among the critical industry trends supporting the manufacturer’s long-term growth.

“We continue to expand our core process areas, with advances in electrification, digitalization, automation, and technology leadership,” president and CEO Ed Santamaria says in the annual report.

Normet has also positioned itself for growth amid other significant trends impacting its industry: mines moving further underground, an increase in remote locations, and customers expecting more options and ease in dealing with the manufacturer and ordering parts, supplies and services to keep their costly equipment running in top shape.

Pekka Jaarinen, director of digital services, Normet Oy

Digital commerce is critical to addressing these trends, says Pekka Jaarinen, director of digital services.

“We are able to react faster to customer requests, and the customer has better transparency” into the availability of products and services and their order status, he says. “But it has improved our internal efficiency as well.”

Normet’s equipment ranges from multi-ton mobile mining equipment to cement-spraying trucks costing in the tens of thousands of dollars or more; the manufacturer’s new online store provides a quicker and more helpful way to order parts, supplies and services.

In addition, the digital channel extends Normet’s market reach, expands revenue opportunities, and provides a more helpful and accessible buying experience for customers. Moreover, its new ecommerce site runs on technology designed to be highly customizable — an advantage Normet is already using to develop new ways to interact with and serve customers.

Customizing a site based on customer feedback

The manufacturer’s first ecommerce site — launched as a pilot project last year in Australia and extended this year to the United States and Canada — is processing customer orders on a commercetools digital technology platform designed for customization, resulting in increased sales, including upselling and cross-selling transactions, and a 75% reduction in calls to customer service, Jaarinen says.

Normet says the digital Normet Store is helping to both attract and retain customers. The company plans to introduce new features as it learns more about how its customers want to use its new ecommerce channel.

“Our approach is to listen to customer feedback,” Jaarinen says. “We want to take a step-by-step approach to develop features that help make commerce easier for us — but especially for our customers.”

Companies that invest in Normet’s equipment typically lay out extensive capital for their mining or tunneling projects; they rely on steady connections with Normet and their maintenance contractors to order supplies, replacement parts and services to keep their equipment running smoothly.

Normet SmartDrive battery-electric mining equipment at work underground.

“These companies are investing hundreds of millions of dollars for getting the infrastructure in place before they get any money out of the ground,” Jaarinen says. “The environment they operate in is quite harsh, the conditions quite extreme, so they want to make sure that whatever equipment or machines they buy from Normet are maintained and running all the time.”

A better way to order from remote job sites

Normet’s customers, however, have relied for years on phone and email communications between their personnel, contractors and Normet to order what they need from the 65,000 products in the manufacturer’s catalog. But phone and email ordering can be tedious and time-consuming, requiring multiple back-and-forth comments among the several parties to ensure they’re bundling the correct mix of items and services for multi-ton mining and tunneling equipment.

Moreover, with many job sites in remote locations far from Normet service personnel, customers and their maintenance contractors rely even more on electronic communications that are faster and more accurate than traditional ordering methods.

“The customer locations are extremely remote,” Jaarinen says, adding, “So using the digital channels, we can get actually close to the customer and be more personalized. We know what machines they are running; we know what parts should be there. If a customer is trying to buy a part A, we can also say, hey, if you buy this, it makes sense to also replace part B.”

A sample mining equipment product landing page on the online Normet Store.

Because such online interactions are automatic, they avoid situations where human error or forgetfulness fails to recommend the correct products customers need to keep their equipment running, Jaarinen says.

Normet doesn’t break out ecommerce sales transaction figures. However, its ecommerce site’s third-quarter 2022 launch preceded a full-year 22% increase in total revenue to 439.24 million euros (US$480.17 million) for the year ended Dec. 31. Profit for the full year rose 31% to 36.69 million euros (US$40.11 million).

A flexible ecommerce platform for what lies ahead

Normet’s ecommerce opportunities are just beginning, Jaarinen says.

To give Normet the flexibility it needs to keep developing its ecommerce channel, Normet decided to deploy ecommerce technology it figured it could modify as needed to meet future challenges and opportunities.

Its Normet Store ecommerce site, store.normet.com, requires users to log in and runs on the commercetools Composable Commerce for B2B as its primary ecommerce infrastructure.

The MACH-based platform encompasses microservices, an API-first development platform, scalable cloud-based applications, and headless commerce technology. The headless commerce design separates the customer-facing front-end interface from the ecommerce engine and the enterprise resource planning system. The current version of Composable Commerce for B2B was refreshed last fall with “next-gen flexibility” with an API portfolio designed for building a customizable commerce infrastructure, says commercetools chief product officer Mike Sharp.

IT services firm Columbus Global led the commercetools implementation, which took about 4.5 months, Jaarinen says. Developed with responsive web design, the site is accessible via mobile devices but doesn’t have a related mobile app.

Because this was Normet’s first ecommerce site, he adds, the overall deployment of the new ecommerce platform was easier than it would have been if the manufacturer had to replace a pre-existing ecommerce technology.

Smoothing out the purchasing process

Jaarinen says the MACH infrastructure will make it easier for Normet to develop online features and applications customized to customer needs — without having to modify the ecommerce engine or the back-end software.  

One development already helping to smooth the buying process is a feature that lets either a maintenance contractor or the final customer (or both, depending on how they operate) submit an  online request for parts and supplies for a maintenance project on a specific type of Normet equipment. Normet will then return an online list of recommended products with prices more quickly and accurately than would typically be done through phone or email, Jaarinen says.

Normet fulfillment workers preparing to ship orders.

“They can drop that request in place on the ecommerce site, then see the availability and the pricing and also do the purchase,” he says. Normet will consider additional online services through ongoing development projects to introduce more value into the purchasing process, Jaarinen says.

New IoT-backed ordering to come

One project in the works is using the ecommerce platform’s composable architecture and internet-of-things sensors to develop a system for pulling real-time information on the equipment’s operation and need for parts and service. The composable architecture with its APIs and microservices enables Normet to connect to the commerce platform’s commercially available or in-house-developed software modules that, for example, could show customers on Normet’s ecommerce site their equipment’s operating status and any recommended replacement parts, supplies and services.

“We are able to get real-time data from all records, which means we can analyze the wear and tear of the equipment and predict upcoming maintenance,” Jaarinen says. “And once we link this data to the ecommerce store, the customer can see what they need to order. And they can order the parts beforehand to have them on site when they need them.”

“This is not integrated today,” Jaarinen says, “but in the next year, most likely, yes.”

“We aim to be selling more than parts,” he adds. “We want to provide more services as well from the online store.”

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