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WHITE PAPER
Sponsored by: Epicor
Pier fra ncesco Man enti
Sep tember 2 013
EXECUTIVE SUMMARY
IDC Manufacturing Insights recently ran a worldwide survey of 465
enterprises from multiple manufacturing sectors including
industrial machinery and equipment, high-tech and metal fabrication
across 13 countries. The resulting white paper Get Customers
Inspired: How Modern ERP Can Support Greater Customer
Experience (IDC #IDCWP13V) summarises the key findings from
this survey and provides essential guidance for manufacturers
developing their own business strategies.
In this paper, IDC Manufacturing Insights provides essential guidance
and a call to action for metal fabrication manufacturers to get their
customers inspired and achieve greater customer experience through
the use of modern ERP.
SITUATION OVERVIEW
Metal fabrication manufacturers are under pressure due to fluctuating
raw material costs and continued declines in prices for metal products,
resulting in a dramatic squeeze on profit margins.
The industry's performance over the past 10 years is shown in Figure
1, which presents IDC Manufacturing Insights' benchmarking database
GPI (Global Performance Index). Data shows that the industry
recovered after the slump in revenue caused by the crisis of 2008
2009, but over the past couple of years net profit margins have started
to decline again and revenues are not growing.
It comes as no surprise that, according to our recent survey, the most
critical concerns for metal fabrication manufacturers are related to
keeping operational costs under control and increasing profitability.
Changes in the market, aggressive competition from lower cost
countries, rapid commoditisation of metal fabricated products, the
difficulty in retaining existing clients, and the struggle to expand into
new, emerging markets are also considered significant threats in the
metal fabrication industry.
FIGURE 1
Worldwide Metal Fabrication Revenue and Net Profits Trends,
1Q024Q12
13
160
140
120
100
-2
80
-7
60
-12
40
1Q02
3Q02
1Q03
3Q03
1Q04
3Q04
1Q05
3Q05
1Q06
3Q06
1Q07
3Q07
1Q08
3Q08
1Q09
3Q09
1Q10
3Q10
1Q11
3Q11
1Q12
3Q12
1Q13
180
Revenue
Note:
The Manufacturing Insights Global Performance Index (GPI) tracks growth metrics from 800+
publicly traded global firms in the manufacturing and retail industries. The GPI tracks general
trends in manufacturing and retail subindustries based on the performance of a sample of
companies from those subindustries, and historical data in the index may be adjusted between
quarters based on the addition or subtraction of companies in the index or company
restatements of historical filings. Estimates by Reuters.
Source: Manufacturing Insights' Global Performance Index, 2013
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#IDCWP23V
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inability to rapidly adapt business processes to change, lack of backoffice/front-office integration, and poor decision making capabilities
all point to an inability to access and utilise data and ineffective,
inadequate or rigid IT systems. Both are identified as critical barriers
to creating a greater customer experience.
How Modern ERP Can Support Greater
Customer Experience
#IDCWP23V
Page 5
FIGURE 2
The Role of ERP in Customer Experience Generation Metal
Fabrication
Q.
In your organisation, what role does your ERP play in contributing to or delivering a good
customer experience?
10
15
20
(%)
25
30
35
40
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#IDCWP23V
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Copyright Notice
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