Technology in Practice

Intelligent pricing is a data-driven approach used by many of today’s small-to-mid-sized distributors that provides optimal pricing based on historical buying behavior, real-time demand, location, and other factors. As more distributors seek better ways to maximize profitability, strategic pricing has come to the forefront as an agile way to reduce revenue leakage and protect margins. To explore this approach further, Industrial Distribution Editor David Mantey hosted technology experts from Net at Work for a discussion of the science and strategy behind intelligent pricing, and the impact distributors can expect from instituting such a distribution pricing strategy through their digital operations platform (DOP) From a patchwork of processes to next-generation enterprise resource planning Executives and employees in the modern distributor may wear multiple hats, so the process of researching, implementing, and optimizing new enterprise resource planning (ERP) software can be left on the back burner indefinitely. Therefore, pricing may involve trying to match information between invoices and customer feedback, guesswork, and working with disparate data from spreadsheets and various software programs. But this approach can become problematic, especially in the complex, volatile environments faced by many distributors. And if a company experiences costly errors or avoidable financial impacts because of this patchwork, they may quickly become reactive instead of proactively addressing the root cause through next-generation ERP and CRM connected via DOP. Defining DOP DOP is the successor to previous generations of accounting and business management software. This platform extends ERP functionality to include business intelligence and analytics, eCommerce, Warehouse Management System (WMS) and more. Intelligent pricing is enabled by DOP through its innate data sharing and analysis capabilities. Net at Work Consulting Manager Jennifer Ma cited intelligent pricing examples within NetSuite. “Distributors can establish customer-specific and currency-specific pricing to keep pricing consistent across all channels. For rebates and trade promotions, you can target specific customer accounts through logic, for instance, to move stock or expand sales. By having pricing management within a centralized solution, distributors can automate the entire process – from pricing creation, execution, accrual and reconciliation of vendor and customer rebate programs.” The video podcast covers these types of examples as well as a number of other points around intelligent pricing, including: Strategies for using intelligent pricing to instill a sense of confidence and responsibility in your teams The benefits of working with a technology advisor to create a specialized digital portal, even with complex products and pricing, thus cutting down on the management needed with a large or complicated catalog. “Our consultants have experienced many of the problems our customers face, so we’re well-equipped to come up with creative solutions to help you,” says Ma. The possibilities unlocked through using a DOP to deepen reporting and customer intelligence. This can include gleaning data that may not appear in ERP, such as information about potential lost sales. How to vet your company’s existing technology to see how it’s currently advancing your goals and objectives, and who should be involved in this process to make sure that you have a clear picture of how it’s currently functioning Practice Director Chris Cleary relays his experience with intelligent pricing: “We’re able to see that clients utilizing our eCommerce solutions [tied with Acumatica] are able to cut down on the complexity of managing complicated inventory environments, including SKUs and other attributes.” Check out the full video podcast recording, “Executing Intelligent Pricing for An Agile Approach to Profitability,” to learn more about how your company can build a DOP that enables you to set the right pricing at the right time to the right customer through the right channel.

The Association of Equipment Manufacturers (AEM) recently held their quarterly Equipment Market Outlook webinar, sponsored by manufacturing technology advisor Net at Work, which examines key issues affecting the construction and agriculture sectors. During the Q4 event, which took place in November, industry experts Danny Thomas of GlobalData, Charles Hart from Fitch Solutions, and Craig Frizzell with AEM presented the following updates: Global construction – Overall, the sector slowed in 2023 with growth in China and India and challenged by slowing most construction sectors of North America, Europe and Australia. A rebound in most construction sectors is predicted for next year. Notably, industrial projects are expected to increase by record numbers in 2023—more than any other category—before undergoing continued growth in 2024. US construction – In the past twelve months, growth in this market was due to nonresidential projects, which showed a 17.6% year-over-year increase as of August. Residential construction spending decreased by 3% for the same period, underscoring the overall weakness in the housing market.Next year, construction projects in manufacturing, transportation infrastructure, and clean energy infrastructure could see increases. However, challenges such as lingering volatility in material prices, rising labor costs, ongoing shortages of skilled labor, and high interest rates are expected to continue to affect construction. Agriculture costs – After an announced ban on the export of non-basmati rice from India was announced in July, rice prices rose by nearly 10 percent in August. At the same time, prices for the three major field crops—corn, soybeans, and wheat—are expected to fall. Stated Hart, “At the global level, the most obvious impact of the global rice deficit has been, and still is, decade-high rice prices.” Apply this business intelligence to support your equipment operations through technology by connecting with manufacturing technology advisor Net at Work at this year’s Association of Equipment Manufacturers Annual Conference. By exploring next-generation solution options, like Sage X3 enterprise resource planning and Rippling human capital management, as part of your unique digital operations platform, you can be better prepared to take on anticipated demand growth and rising costs to unleash your potential for greater productivity, efficiency and profitability. You can schedule a conversation with us to discuss your organization’s unique needs and how next-generation solutions can help you meet your goals.

In a marketplace undergoing prolonged workforce challenges, sourcing bottlenecks, cyberattack concerns and inflationary pressures, industrial manufacturers know that a strong digital transformation strategy can help overcome these issues. But how can manufacturers get started on the difficult, ongoing process of making better use of their data as part of their digital transformation, and why is it so important to do so? In a recent FAQ published by Smart Industry, expert technology advisors with Net at Work outlined five important insights to help manufacturers leverage data to reduce risk, increase revenue, and decrease costs. Start with an introspective process This foundational step will help an organization—and its leadership—become aware of what processes are or are not working, as well as what data you will need going forward. The deeper you can go upfront, the more thoroughly and securely your digital transformation will be rooted. And with a foundation in place, your resulting digital transformation can address both short- and long-term issues. “The deeper you can go upfront, the more thoroughly and securely your digital transformation will be rooted.” Invest in a digital strategy that supports improved utilization of data It’s not only cost-effective, but practical to prioritize your organization’s digital strategy creation. This helps you not only take advantage of next-generation technologies such as machine integration, but also allows you to avoid the risks and unnecessary expense of using legacy applications that often reach end-of-life with little notice and cause their users to scramble to implement new solutions without having time to thoroughly explore and vet unfamiliar systems. Learn about Digital Operations Platforms (DOPs) and why they’re important Simply put, DOPs are the next generation of traditional ERP systems. They are adaptive to fast-changing business needs, use artificial intelligence to help with innovation and efficiency, and they offer multiple ways to interact with systems far beyond the browser or app. A more digitally-adept system can help manufacturers become more cost-efficient and practical, in part by connecting previously disparate data across your organization. Explore how better access to data can improve your organization’s decision-making What if your organization had better forecasting, or you could connect transactions from various departments more easily to get a fuller picture of a project or product? Exploring the capabilities of today’s DOPs can be one of the first steps toward seeing your customers, suppliers, vendors, employees, and other stakeholders in a whole new light and with improved insights. Plan and get help for smooth implementations If your organization has a chief information officer—or engages a fractional CIO with extensive experience in manufacturing—then they can not only help you navigate the development of a DOP more effectively, but also can help you with the transition process itself, including defining the data you need to support the business outcomes that are most important to your organization. For more information, read “Driving Your Data Toward Smart Decision-Making” or contact Net at Work for a complimentary business health assessment.  

Today, only 25% of small and medium-sized businesses (SMBs) use a customer relationship management (CRM) solution, and just another 10% report that they plan to implement a CRM system this year.1 This finding is understandable for a few reasons. First, many SMBs start off with relatively simple methods of tracking key information, such as Excel spreadsheets, note cards and manual reports. These organizations may not think they can justify a CRM investment, especially if their current approach seems to get the job done. Additionally, many SMB leaders may not have extensive experience with technology in general and CRM software in particular. These leaders may have other priorities and may need more convincing that CRM solutions can significantly improve status quo processes. “By understanding customers’ preferences and histories, SMBs can tailor their offerings to their needs, building long-term relationships and increasing the chances of repeat business.” Finally, many SMBs may think they have a CRM in place, since they may use one or two third-party systems, such as a customer contact database or a specialized shipping application. Yet systems like this may contribute to internal headaches: wasted time, inefficient processes, and a lack of meaningful, real-time information. As SMBs experience new levels of success – exceeding growth targets, landing new customers, launching a new product line, or other milestone achievements – they can greatly benefit from the efficiencies a next-generation CRM solution brings. A next-generation CRM, while not formally defined, is often characterized as a cloud-native solution that incorporates many of the hallmarks of next-generation ERP: it has robust dashboards and reporting to support data-powered sales and marketing operations; it offers automated workflows; and a platform ecosystem with globalization, including multi-language and  multi-currency support. As more SMBs evaluate if a CRM solution is worthwhile, they are likely to find that a cloud CRM is indeed a positive ROI generator, and a CRM implementation becomes a component of their technology roadmap Consider these impressive benefits realized by BSN Sports, the biggest online distributor of sports equipment and team uniforms in the United States, after they implemented the next-generation CRM, Creatio: Increased their sales by 10% Decreased case processing time by 45% Achieved a 99% usage rate among the company’s 10 internal teams who use the system daily A fast-growing electrical contractor, Sprig Electric, is also benefiting from its cloud CRM deployment: Increased lead volume by 120% Closed sales deal twice as fast Boosted operational performance by 70% Note that the next-generation CRM is the tool; without a strategy and defined processes in place, such results would not be achievable. To learn more about technology roadmaps and how your organization can benefit from them, download our white paper, “A Comprehensive Technology Roadmap Can Deliver a New Competitive Advantage for Today’s SMBs.” Six Ways Next-Generation CRM Helps SMBs While there are many advantages to next-generation CRM, here are six of the most important ways these solutions can help SMBs overcome internal challenges and support their most important goals: Centralized customer data: A cloud CRM system allows SMBs to gather, store, and manage customer-related information, all in one place. This helps SMBs gain a comprehensive, real-time view of each customer’s interactions, purchase history, and preferences. Fast, easy access to this data promotes better customer service and highly-targeted marketing efforts. Better sales and lead management processes: A next-generation CRM solution helps streamline the sales process by tracking leads, opportunities, and deals. It helps sales teams prioritize leads, follow up at the right time, and close deals more effectively, which leads to increased sales efficiency and faster revenue growth.  Data-driven insights: Cloud-native CRM systems provide analytics tools that enable SMBs to track and analyze customer behavior, sales trends, marketing campaign effectiveness, and many other metrics. This data-driven approach helps in making informed business decisions and refining strategies in response to changing customer demands or market conditions. Task and workflow automation: Next-generation CRM solutions offer automation features that help optimize repetitive tasks, such as sending follow-up emails, scheduling appointments, and assigning tasks to team members. This saves time, increases overall productivity, and reduces the chance of human errors. Meaningful collaboration and communication: Cloud CRM solutions include features that facilitate internal collaboration and communication. Team members can easily share customer information, notes, and files, leading to better coordination and a unified approach towards customer interactions and problem solving. Increased customer retention and loyalty: By understanding customers’ preferences and histories, SMBs can personalize and tailor their offerings to their needs, building long-term relationships and increasing the chances of repeat business. For those SMBs who have yet to implement a CRM solution, their rationale is understandable. Yet by adding next-generation CRM to a comprehensive technology roadmap, it could lead to significant benefits in the future.   Next Steps   To learn more about technology roadmaps and why a next-generation CRM solution should on yours, download our complete white paper, “A Comprehensive Technology Roadmap Can Deliver a New Competitive Advantage for Today’s SMBs.”   1 Business.com, “CRM Adoption, Market Size, and Usage in 2023,” July 31, 2023.

According to the U.S Chamber of Commerce, there were 693,000 open manufacturing jobs as of March 2023. The sourcing and retention of talent is impacting manufacturers already trying to manage demand, continued supply chain issues and rising costs.  Manufacturers that make improvements to the employee experience will not only be better positioned to attract and retain employees, but also can drive quality output and profit generation. Specifically, research conducted by Gallup has found that employee engagement among top- and bottom-quartile business units and teams represented a 64% difference in safety incidents, a 41% difference in quality and an 18% variance in productivity – all areas that directly tie to profits.  In the face of these ongoing challenges, how can your organization’s technology contribute to your employee experience?  The key to unlocking profits through employee engagement and retention is best-of-breed, next-generation systems integration, a concept Forrester Research calls a digital operations platform (DOP). Through DOP, manufacturers can gain data visibility across the organization to identify trends, relationships and root causes that may be tied to the employee experience.  A sample manufacturing DOP, with next-generation ERP, like Sage X3, and HCM, such as Rippling, tightly integrated, gives companies the data visibility across the organization to better identify trends and root causes to make faster and better decisions to impact efficiency and profitability. Vistage and technology advisor Net at Work joined forces to address this approach during the webinar, “Your Digital Operations Platform as a New Approach to Workforce and Operational Success.” Experts in Human Capital Management (HCM) and Enterprise Resource Planning (ERP) discussed areas manufacturing executives should be working with their teams before taking on a DOP to properly support the employee experience: “HR Digital transformation is about how human resources can impact the business using digital technology,” said Harold Ford, Employee Experience practice director at Net at Work. “We need to first identify, how can we improve HR processes, employee workflows, and business outcomes? How can HR provide better optics into workforce data to make business decisions?” Solutions Engineer Dev Rawat expanded upon the employee experience from an operations and productions standpoint. “When it comes to your most important asset, your workforce, safety should always come first,” explained Rawat. “But how much are you able to tie together safety incidents to the employee record to establish trends and make predictions? For example, are you noticing safety incidents on a Monday morning after a football game? Do you know the exact percentage that a newer hire is likely to be involved in a safety incident? Once you’ve started capturing that, what then can you change about your training program to chip away at the probability?” Access this on-demand webinar today for more of these valuable insights to help you build the solid technology foundation to take on employee engagement and retention to unlock greater efficiency, productivity and profitability.

Trends affecting industrial manufacturers continue to shift, with the continuation of the labor shortage and activity boosted by the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Inflation Reduction Acts, causing industrial manufacturers to look toward data-driven outlooks. To help equipment manufacturers better navigate their business in the short term, the Association of Equipment Manufacturers (AEM) holds quarterly Equipment Market Outlook webinars, sponsored by manufacturing technology advisor Net at Work, to examine key issues and industry conditions affecting the construction and agriculture sectors. Industry experts Danny Thomas of GlobalData, Charles Hart from Fitch Solutions, and Craig Hart with AEM highlighted the following updates during the Q3 event in August of 2023: Global construction – Output growth in real terms will slow to approximately 0.7% for the year, with emerging markets performing better at 3.0% than advanced economies.  US construction – While the industrial sector is strong, in large part due to the CHIPS ACT and other legislation, the overall construction industry is expected to contract by 2.5% due to a lower performance by the residential sector. All U.S. states except for North Dakota are experiencing a downturn compared to 2022. “We are possibly at a turning point where we’re seeing a two-speed [construction] industry, where residential activity may be decreasing from a very high level, but industrial construction activity has not yet hit the ground in terms of projects begun.” Agriculture costs – Fuel and farming costs remain high, with the U.S. Department of Agriculture forecasting a 4.0% rise in costs during the remainder of 2023. Tough crop conditions in the U.S., Europe and Argentina are part of this trend, with the removal of rice produce in India, El Nino, and the invasion of Ukraine (with the collapse of the Black Sea grain deal) adding to the volatility. Producer uncertainty about inventory – In the previous quarter, 54% of producers surveyed reported believing that their harvest inventories were at an optimum level, while in the most recent quarter surveyed that number had decreased to approximately 37%. In light of today’s volatile conditions, construction and agricultural equipment manufacturers can ensure that their company’s technology supports all aspects of their business through a digital operations platform (DOP) approach to grant widespread data visibility, thus helping them make quick, well-informed decisions in a complex and ever-changing market. Learn more about how a strategic technology partner can help your manufacturing organization take on a DOP through a technology roadmap built on next-generation ERP solutions, like Sage X3, by accessing this AEM Advisor article.

The W.E. Upjohn Institute for Employment Research was founded in 1945 to study policy issues around employment and unemployment. Today, the Upjohn Institute continues funding extensive research while managing Michigan Works! Southwest, a four-county organization that prepares a qualified workforce to meet the current and emerging needs of business and industry. Due to the Institute’s multifaceted projects—and its various funding sources and locations—modernizing its financial operations was a crucial factor in enabling the organization’s current and future success. So, when Kathy Breyfogle joined the Institute as CFO, her first order of business was to migrate from its 20-year-old server-based accounting system, Abila MIP Fund Accounting, to the best cloud-based financial management solution for the organization’s needs. From Scanning, Storing and Routing Documents to Paperless Workflows With the help of their trusted technology advisor Net at Work, Kathy and her team chose Sage Intacct as the Institute’s next-generation nonprofit Enterprise Resource Planning (ERP) solution. “Sage Intacct has a more professional, consistent user interface, and the fact that it’s the only solution to be endorsed by the AICPA (Association of International Certified Professional Accountants) impressed us and gave our auditors confidence,” she explains. “We see quality improvements across all of our processes,” says Kathy. “Overall, we’re able to react more quickly and spend more time on activities that help grow the organization’s impact and reach.” Net at Work’s knowledge of the Institute’s operations as well was crucial for a smooth, swift upgrade.  “They know us, and they are experts in both products,” Kathy notes. “That allowed them to directly map our existing workflows into the new system and optimize those workflows simultaneously.” With Net at Work’s help, the Institute brought two years of transaction detail and an additional year of account balances from their previous solution into the cloud nonprofit ERP. This allowed their teams to be productive right from the start. Leading from the Front Now that the Institute uses Sage Intacct, they’re enjoying all the benefits that a next-generation nonprofit ERP can offer, including: Smart rules ensuring accuracy and improve internal controls Dedicated project management tool to boost collaboration and accountability Use of dimensions to shorten and simplify a complex chart of accounts A score of 100% granted to the finance team on a recent employee engagement and satisfaction survey Read the full Net at Work success story on the Upjohn Institute’s implementation of cloud ERP Sage Intacct to learn more about the organization’s experience with this ERP migration process.

What’s Cyber Resilience – And Why Does Resilience Matter? A company’s cybersecurity program must be regularly assessed to ensure that it is sufficiently equipped to handle a cyber-attack and aligned with its cybersecurity needs. These assessments test a company’s cyber resilience. But what, exactly, is cyber resilience, and why is it important to a company? According to The National Institute of Standards and Technology, cyber resilience is the “capability to anticipate, withstand, recover from, and adapt to adverse conditions, stresses, attacks, or compromises that use or are enabled by cyber resources.” In layman’s terms, cyber resilience is keeping a company’s data secure while detecting and foiling threats before they can do any damage. Cyber resilience has a company’s back, making sure all is okay within the cybersecurity arena and giving the proverbial thumbs up to a company that its cybersecurity program and its employees have the strength and skills to overcome even the worst ransomware battle. Assessing Cyber Resilience in the Modern Enterprise Just how do companies set about assessing their cyber resilience? This assessment checklist should help virtually any business ascertain its cyber resilience: Identify risks and potential cyber-attacks by creating a list of risks, threats, and possible sources of hacking. As Ben Franklin once advised, “An ounce of prevention is worth a pound of cure.” Franklin’s advice applies to the identification of factors that might lead to a cyber-attack. Ensure that current IT resources and assets are protected at all times. Having a list of current plans, policies, procedures, systems, and technologies is vital, as is examining how the company currently responds to data breaches and other attacks. Test cybersecurity plans and procedures, identifying potential weaknesses and ferreting out misinformation. Train cybersecurity team members so that they know how best to address cyber threats and that they are familiar with the company’s cybersecurity systems and software. In addition, every member of the company must be trained on cyber-attacks and must understand each person’s role during such an attack. Assessing Cyber Resilience with Continuous Vigilance: Why Consistency Matters Routine cyber resilience tests will help safeguard data and teach companies how their cyber security program can be made stronger, thus helping to identify and address potential risks before they arise. Think of it this way – to maintain the integrity of our teeth, we undergo regular check-ups and cleanings. Similarly, to be cyber resilient, companies must regularly update and enhance their code armor (beef up their cybersecurity programs). Why so diligent? Well, you can bet the bank that cybercriminals are regularly updating and perfecting their own codes in order to wreak havoc on the unfortunate company that has not maintained the integrity of its cybersecurity program. In addition, companies also need to train their employees so that they will know what to do to properly handle elevated cyber threats and actual cyber-attacks. Creating a Resilient Enterprise in Today’s Threat Landscape Companies that are cyber resilient can actually benefit from cyber threats and attacks by turning these unfortunate events into learning opportunities to strengthen the company’s cyber security programs, thereby experiencing sustainable, inclusive growth. The bottom line? Companies willing to conduct ongoing cyber resilient assessments, train their employees how to handle cybersecurity events, and closely and routinely examine the company’s needs for protecting sensitive data, will be well prepared for any cyber-attack event.

When it comes to small-to-medium sized businesses (SMBs) deciding what technology could have the most impact on their business, it’s the replacement of their legacy Enterprise Resource Planning (ERP) that winds up topping the list of priorities today. Why do fractional Chief Information Officers (CIOs) advise SMBs to prioritize the evaluation and selection of modern ERP when contemplating changes to their company’s technology, particularly in support of strategic goals? As SMBs scale and take on complexity, they begin to understand that their current technology and overall approach may not be well-suited to support their next steps and strategic vision. In recent research, SMBs admitted to crucial shortcomings in their legacy systems: 49% reported that their legacy business systems can’t track business processes. 47% said that their business systems can’t interact with each other.  40% believed that legacy systems lack important collaboration features. The reliance on outdated, legacy ERP systems often has a number of inherent limitations, such as manual data entry and manipulation, burdensome and costly patches and upgrades and the perpetuation of siloed data, that simply can’t support growth strategies and vision for the future. As a result, legacy technology can lead to wasted time, excessive manual steps and/or workarounds, employee and customer frustrations, inaccuracies and profit loss. When assessing their line of business applications in place today, SMBs working with their fractional CIO should have legacy ERP be among the first – if not the first – solution to be replaced in order to achieve success.  “When SMBs are assessing their line of business applications in place today, legacy ERP should be among the first – if not the first – solution to be replaced in order to achieve success.” Three Ways SMBs Can Benefit from Legacy ERP Migration to Modern ERP Modern ERP solutions, like Sage Intacct, Acumatica, NetSuite and Sage X3, are designed to centralize, streamline and facilitate the improvement of business processes within a company. As the common database and overall platform to connect virtually every department in the organization, these cloud ERP systems support critical functions, such as inventory and purchasing, accounting, sales, and many industry-specific areas of focus, ultimately fulfilling a successful digital platform that companies like Power Curbers have adopted.  All of this enables modern ERP solutions to deliver a wide range of impressive benefits for SMBs: The power of automation: One of the first, and most impactful, benefits can come from automation and Artificial Intelligence (AI). Before implementing a next-generation ERP system, SMBs may over-rely on manual processes related to siloed systems and outdated legacy technology. These inefficient processes can waste valuable time, lead to costly errors, and hinder employee productivity. Modern ERP can successfully automate many of these once-manual tasks, such as through GL Outlier Detection that flags irregular transactions based on historical patterns, leading to new efficiencies and enhanced productivity. Modern ERP, as a core component of any digital platform, facilitates comprehensive data visibility across the entire organization. By integrating with other next-generation applications like Human Capital Management (HCM) and Customer Relationship Management (CRM), this access to real-time data allows SMBs to make data-driven decisions and gain valuable new insights into the performance of the business. As a result, leadership can make faster, more-informed decisions to quickly respond to market changes and opportunities.  Cost savings: Beyond automation and the ability to streamline business processes, modern ERP can enable more efficient procurement, facilitate better resource allocation, better financial management and more. Also, since these systems are deployed in the cloud, they reduce the need for IT resources to execute data redundancy, data replication and disaster recovery procedures for additional cost savings.  By delivering these benefits, modern ERP systems can help SMBs better position themselves for newfound success. With the right ERP solution, SMBs can efficiently manage resources, quickly respond to market changes and new opportunities, and achieve their growth targets, all for a new – and sustainable – competitive advantage. Next Steps To learn more about the purpose of modern ERP in technology roadmaps, download the complete white paper, “A Comprehensive Technology Roadmap Can Deliver a New Competitive Advantage for Today’s SMBs.”  .billboard-blog { background-position-y: bottom !important; }