We often hear about the big technological moves that major manufacturers make, but small and medium businesses (SMBs) are out there in the market and competing just as hard. The race to leverage 21st century technology and improve profitability is one that you can’t afford not to run—so it’s important for SMBs to understand the techniques that will allow them to make their mark using technology.
These seven key points will help SMB manufacturers leverage technology in an effective and practical way that boosts profits. By investigating and integrating technology designed for enterprise-grade performance, SMBs can compete with the big players and prove they belong in a competitive and ever-changing business landscape.
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Look at your options for entering the cloud.
In today’s business environment, the cloud is where a great deal of business happens. Cloud computing gives businesses access to a huge on-demand computing network that allows them to be competitive anywhere in the world.
One great thing about the cloud is that it has lowered the market’s barriers to entry when it comes to many big investments. An ERP software system, for example, once required an enormous investment of labor and capital, but today’s market offers cloud-based ERP systems that are much more lightweight and affordable for small businesses. By taking advantage of cloud computing options to make important investments at a lower cost, businesses can drive cost-effective results that improve bottom lines.
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Get your digital marketing in shape.
Digital marketing is fundamental to connecting with customers and building your brand. Small businesses need digital marketing to stand out from their competitors and drive new customer acquisition, and it can be an incredibly powerful tool for filling your sales funnel. The bottom line is, if you’re not taking advantage of digital marketing channels, you’re doing your brand and your business a disservice.
Businesses don’t have to make massive investments to get into digital marketing. In fact, there are many cost-effective ways to dip your toe into the water today. One easy way to start is by finding the most relevant platforms for your industry (in manufacturing, Google and LinkedIn are usually good choices) and exploring their targeted pay-per-click ad systems. These ad platforms offer an easy way to purchase digital advertising, and their built-in analytics suites allow analysis of ROI.
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Keep your security up-to-date.
Security is a fundamental concern in today’s high-tech business world. An ever-evolving array of cybersecurity threats has caused major data security catastrophes for some of the world’s biggest companies, and these companies learned the hard way about what a cybersecurity breach can do to a business’s profits and reputation.
A solid security system pays for itself many times over. Its impact on profits may not be immediately noticeable, but the alternative is leaving your bottom line open to a variety of far worse threats. Take some time to research cybersecurity best practices for SMBs and discuss solutions with your IT team. Cover these practices with your employees as well, as they’re on the front lines of data security.
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Create targeted solutions for boosting productivity.
Today’s huge range of technologies can be leveraged in a variety of ways that allow SMB manufacturers to make targeted improvements in productivity. By leveraging the treasure trove of data that’s available to businesses, you can find your most critical areas for improvement and target them with tech-based solutions.
First, SMBs need to ensure that their data collection and storage infrastructure is sound, and that they’re analyzing the most relevant factors when making decisions. Then, it’s time to look at which improvements can create the most ROI. Could implementing a new CRM system help increase your customer retention? Could supply chain management software help smooth out the kinks in your supply chain? The options are almost limitless when you’re looking at the right data.
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Implement an asset tracking system.
Asset tracking is a critical way for businesses to protect their investments, and it’s also extremely helpful for calculating the depreciation of fixed assets. SMB manufacturers need robust asset tracking just as much as larger manufacturers do, but these systems can be challenging to implement for businesses with fewer resources on hand.
If your business is still tracking assets using Excel sheets or, even worse, not tracking them at all, it’s time to investigate your options for asset tracking software. ERP systems often include asset tracking suites, and as mentioned before, many cloud-based ERP systems are now available to small businesses by subscription at affordable upfront prices. Remember that a good asset tracking system will enable an SMB manufacturer to cover both inventory and fixed assets, which may necessitate multiple software tools–depending on your needs.
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Use predictive maintenance to reduce downtime.
Downtime can be a major profitability killer for SMB manufacturers. Predictive maintenance is an answer that many businesses have embraced because it allows them to take a proactive approach to protecting their equipment and responding to problems before they reach critical status.
Predictive maintenance is a maintenance practice that’s not dissimilar from the more well-known preventive maintenance. The difference is that rather than servicing components on a pre-set schedule, predictive maintenance uses data to make decisions about when to service equipment.
Predictive maintenance does require commitment to robust data tracking and analysis, but many businesses find the cost to be worth it for the benefits that it provides in reducing downtime. By implementing some of the data management solutions mentioned elsewhere in this article, businesses can grow their ability to perform predictive maintenance.
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Order components pre-customized.
One great innovation that SMBs don’t always take advantage of is the ability to order product components with customized features. For example, SMB manufacturers that use electronics enclosures are now able to order customized plastic enclosures that have already had all necessary machining and cuts made. By ordering components customized to their needs, businesses can reduce their need for in-house or contract machining services and speed up production.
It’s an exciting and challenging time to be an SMB manufacturer. By seeking out the best technologies and making smart investments, SMB manufacturers can put themselves in a position to take advantage of the most crucial new industry developments and achieve new levels of growth and productivity.
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