{"id":9389,"date":"2019-09-12T12:14:51","date_gmt":"2019-09-12T12:14:51","guid":{"rendered":"https:\/\/ca.syspro.com\/blog\/consumers-are-driving-the-demand-for-digital-manufacturing-through-customization\/"},"modified":"2021-03-04T14:50:35","modified_gmt":"2021-03-04T14:50:35","slug":"consumers-are-driving-the-demand-for-digital-manufacturing-through-customization","status":"publish","type":"post","link":"https:\/\/ca.syspro.com\/blog\/erp-and-technology\/consumers-are-driving-the-demand-for-digital-manufacturing-through-customization\/","title":{"rendered":"Consumers are Driving the Demand for Digital Manufacturing through Customization"},"content":{"rendered":"<p>With a focus on<a href=\"\/blog\/erp-for-manufacturing\/factories-of-the-future\/\"><strong> smart factories and digital manufacturing,<\/strong><\/a> <strong>Canadian Manufacturers<\/strong> must change their business model (including manufacturing processes from design to production) to adapt to the driving demands from customers for increased customization\/personalization in manufacturing.\u00a0 Historically, mass production equated to high efficiency and maximum cost-effectiveness during production.<\/p>\n<p><!--more--><\/p>\n<h2><strong>The shift to customization\/personalization in manufacturing \u2013 a threat or an opportunity?<\/strong><\/h2>\n<p>According to <strong><a href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/ch\/Documents\/consumer-business\/ch-en-consumer-business-made-to-order-consumer-review.pdf\">Deloitte<\/a>,<\/strong> \u201cEmpowered by social networks and their digital devices, consumers are increasingly dictating what they want, when, and where they want it.\u201d\u00a0 Consumers are now driving the demand towards customization which implies the transition from traditional to digital manufacturing is essential for a manufacturer\u2019s survival.<\/p>\n<p>This means manufacturers must change their business model (including manufacturing processes from design to production) to adapt to driving demands from customers for increased customization\/personalization.\u00a0 Historically, <a href=\"https:\/\/ca.syspro.com\/blog\/applying-and-operating-erp\/why-going-back-to-basics-is-crucial-to-moving-forward\/\"><strong>mass production equated to high efficiency and maximum cost-effectiveness<\/strong><\/a> by manufacturing exactly the same thing during production.\u00a0 So, does this shift pose a threat or a world of opportunity for today\u2019s manufacturer?<\/p>\n<p>Some manufacturers may see it as a potential threat to their business as they are solely focused on the immediate cost implication of variable production processes and not long-term competitive benefits.\u00a0 This mindset is detrimental for growth and sustainability as manufacturers could run the risk of losing revenue and customer loyalty by ignoring the research predicting the shift.<\/p>\n<h2><strong>What are the benefits of mass customization for manufacturers?<\/strong><\/h2>\n<ol>\n<li>Advances in<strong><a href=\"\/blog\/digital-business-and-erp\/why-digital-transformation-is-for-all-manufacturers\/\"> digital manufacturing technologies<\/a><\/strong> are enabling manufacturers to restructure business operations and core processes with the ability to link to resources and their <strong>supply chain for optimized operations.<\/strong><\/li>\n<li>Digital manufacturing models can <strong>improve traceability<\/strong> in the process by connecting the production floor to digital inspections and tracking shipments.<\/li>\n<li>Flexible models, analytics, automation, AI, machine learning, IoT and adaptive supply chains are catalysts to increasing efficiency and enabling mass customization with little to no cost implications.<\/li>\n<li><strong>Mass customization manufacturing<\/strong> provides opportunities to take advantage of premium pricing while improving customer conversions and loyalty.<\/li>\n<\/ol>\n<h2><strong>Consumers would be willing to pay a premium for a customized product or service<\/strong><\/h2>\n<p>Deloitte published a <a href=\"https:\/\/www2.deloitte.com\/content\/dam\/Deloitte\/ch\/Documents\/consumer-business\/ch-en-consumer-business-made-to-order-consumer-review.pdf\">report<\/a> that states, \u201c\u2026more than 50% of consumers expressed interest in purchasing customized products or service.\u201d\u00a0 The research also shows that most consumers would be willing to pay a premium for a customized product or service and as a result would be actively involved in the processes.\u00a0 This gives manufacturers an opportunity to exhibit the value consumers get from their personal data being used and translates to deeper insights into consumer behavior for a competitive business advantage that could increase profitability.\u00a0 This presents a unique opportunity to command a premium price.<\/p>\n<p>Ultimately, potential production cost increases to support mass customization can be offset through digital transformation and allows manufacturers to simplify their product portfolio for more predictable demand while improving efficiency. The net result is reducing costs in the long term, and future-proofing the business for sustainable growth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 2<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>With a focus on smart factories and digital manufacturing, Canadian Manufacturers must change their business model (including manufacturing processes from design to production) to adapt to the driving demands from customers for increased customization\/personalization in manufacturing.\u00a0 Historically, mass production equated to high efficiency and maximum cost-effectiveness during production.<\/p>\n","protected":false},"author":181,"featured_media":9390,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[126],"tags":[281,276],"class_list":["post-9389","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-erp-and-technology","tag-erp-and-digitization","tag-erp-and-technology"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.1.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Consumers | Demand for Digital Manufacturing | Mass Customization<\/title>\n<meta name=\"description\" content=\"Smart factories and digital manufacturing means Manufacturers must adapt to customer demands for increased customization\/personalization in 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