How Sandvik Overcame the Challenges of Becoming an Ecommerce Business and Improved Links with Customers and Suppliers, Bringing Considerable Cost Savings
Sandvik is an online tools company which has undergone a massive change in the digital age and is having to adapt to stay relevant in its field. Engineering and technology are continuously challenging our perception of what is achievable.
The move towards digitization will put new demands on companies as they adapt to this evolving environment and prepare new generations of engineers who will continue to lead the changes in this area. Sandvik works with engineering businesses to provide solutions to the most complex problems that these companies are now facing and help them to stay ahead of the competition.
Digitalization of the Manufacturing Industries
For many companies introducing digital technology has required them to step out into the unknown. However, there is often uncertainty as to where to start in this process or which systems and equipment they will need.
Other companies have been reluctant to make investments in this area for fear of the impact this technology could have employees and their jobs. For some businesses that have wanted to introduce new technologies, many simply could just not afford the initial costs involved.
There are many opportunities that digitalization provides for the manufacturing industry, from design and planning all the way to manufacturing and analysis. It opens new business opportunities for Sandvik as it means it can broaden what it’s offering. Digitalization means that it’s easier for its customers to find the right tools, buy them, and to access support whenever they need it.
According to Sandvik APAC Digitalization Business Line Manager, Ville Svensberg, even mining companies are now more actively exploring the rollout of digital systems. He points to the accepting of automation, even in underground environments, as an example of the switch in attitude.
Sandvik states that it will continue to invest in research and development resources to improve their tools. It has also announced that it will increase research and development resources when it comes to tool paths, methods, and programming – an area where Sandvik is able to be truly innovative. It’s also looking for new solutions when it comes to the utilization of data, usability, and availability. Its uniqueness is found in its range of tools, application of their research, and the close collaboration and relationships which have been developed with its customers.
“I think there’s a lot more information now – what the technologies are able to do and grow to develop new types of competences in your workforce. It doesn’t always mean that you lose people, but their roles are reinvented.” Svensbeg said.
Personalized Shopping Experiences Within the Manufacturing Industry
The use of an extranet has the potential to help companies to become more successful businesses and is something Sandvik has utilized. An extranet is an intranet-based platform which can be partially accessed by authorized outside users, enabling businesses to exchange information with customers and other interested parties over the internet with increased agility and more securely than ever before.
Sandvik has been able to use extranet technology to their advantage and allow a much more personalized service. It means customers can design their own products within parameters set by Sandvik and receive advice on how best to use them. In Sandvik offering this personalized service, it creates a much more efficient offering that helps to bypass traditional sales methods. The other advantage to this is the fact that customers can gain access Sandvik products, as well as help and advice, at any time – not limiting them to store time hours.
Sandvik has established itself as a digital leader in the manufacturing industry, but this competitive landscape is an ever-changing environment.
“All metal-cutting tool suppliers are working with digitalization in one way or another, but along with these traditional competitors, you need to add measurement companies, hardware and software suppliers,” explains President for business area Sandvik Machining Solutions, Klas Forsström “Everyone wants a piece of the manufacturing cake, but I feel confident that we have a head start with our deep manufacturing competence and close and strong collaboration with hundreds of thousands of customers.”
Final Thoughts
This technology is transforming how the B2B industry operates. In digitizing the way in which customers get personalized products and matching their wants and needs to the best tools, it’s opening a whole new age of purchasing and accessing services.
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