Safeguarding your CNC future

Oliver Lodl,Chief Sales Officer 

Marketplace has taken on an unprecedented level of significance nowadays due to the coronavirus outbreak that rocked the world. As response planning and social distancing measures began in late February to mid-March in South East Asia, retailers were flooded with waves of panicked customers. The situation is further aggravated by reliance on precious and accurate on-time deliveries. This shows why online marketplaces are valuable for both consumers and site operators, it’s the first large-scale example of ecommerce as a salvation to a supply-panicked population.

ORDERFOX.com, a leading Marketplace for over 19,000 buyers and CNC manufacturers, is offering fast, simple and cost-effective solution to ward off the consequences of the coronavirus and other crises. 

Kathryn Gerardino-Elagio of International Metalworking News for Asia interviewed Chief Sales Officer Oliver Lodl of Orderfox AG on how the company can actively support customers in Asia and the entire CNC industry during this acute situation.

Orderfox in Asia

“Two years ago, we started working together on the CNC market in Asia. Our goal is to offer our customers the opportunity to find the right partner who can meet their requirements with little effort. But it is also a chance for purchasing organisations to find the right manufacturer on the global market in a simple way and with little effort,” Oliver explained.

He detailed, “Orderfox also offers the possibility to realise global projects with local sourcing due to the many partners. This enables many companies to concentrate on their core competencies and to produce sustainable and environmentally friendly products.”

Due to the current crisis, the existence of numerous CNC companies is at stake, said Oliver. “The COVID-19 outbreak has highlighted the vulnerability of complex global manufacturing supply chains. To make matters worse, the CNC industry heavily relies on on-time deliveries. Delivery delays of just one day can create gaps in the entire supply chain, which can lead to exploding costs, enormous sales losses or even a complete standstill,” he mentioned.

Business for many companies has been delayed or halted as a result of the pandemic, industrial trade fairs have been cancelled and tens of thousands of workers around the world are in quarantine at home.

Oliver stated, “The financial impact of the coronavirus crisis will undoubtedly be severe. Yet we are not completely powerless. It is now imperative that we limit the damage and contain the losses. The crisis may limit many production facilities, but the demand for components is still high.”

He is positive that changes in CNC supply chain management are now being called for COVID-19 was a wake-up call for many CNC companies. “Many of them have realised that they need to fundamentally rethink their supply chain management,” Oliver added.

Business strategies

He rationalised the great opportunity CNC manufacturers can get from digitalisation. “Many CNC manufacturers are small and medium-sized enterprises that rely on traditional procurement strategies that are time-consuming and quickly becoming obsolete,” he reasoned.

Oliver added, “In many cases, these producers are highly dependent (more than 65%) on their regular customers, while only around 30% of their turnover is generated from newly acquired customers (Source: Orderfox Customer Research). Customer acquisition is often difficult and time-consuming. And now that numerous industrial trade fairs have been cancelled, new acquisition channels are urgently needed.”

He mentioned that digitisation also will change the CNC procurement. “It is not easy for buyers in the CNC industry to fill the gaps that have arisen and find alternative business partners. Many manufacturers don't have their own website, and therefore can't be “googled”. Most industrial fairs, which have been a reliable source of business contacts for many years, are expected to be cancelled in 2020, he stressed.

Market scenarios

Oliver noted that digital platforms are a welcomed solution, as they open up new market opportunities while providing additional transparency.

“Among them, Orderfox is the only global platform that believes in the need for a direct relationship between buyer and manufacturer. While other platforms hide manufacturer information and supplier procurement takes place in a “black box”, Orderfox enables direct communication between the two parties,” he specified.

Oliver added, “This creates maximum transparency and mutual trust. At the same time, the price pressure on manufacturers is alleviated, as the latter can also differentiate themselves from their competitors by means of quality attributes.”

Digital marketplace for the CNC industry

“Orderfox is the world's leading digital marketplace for the CNC industry. We want to maximise the success of our business partners and revolutionise the way they work together. Companies in the CNC machining sector can rely on our global network for customised manufacturing by qualified workshops,” he remarked.

ORDERFOX.com was developed in response to the Internet of Things (IoT) or Industry 4.0 and the rapidly advancing digitalisation of all production processes. The interactive community links buyers and CNC manufacturers around the globe and thus opens up unlimited market opportunities for all users in the truest sense of the word.

Oliver commented, “There are countless small and highly professional companies that are extremely hard to find because they don't invest much in their market presence or marketing. This tedious research is carried out by Orderfox for you. Visitors to the platform can see at a single glance which components can be produced by which companies, in which tolerance classes they can do so, which machines they use and where their production is located.”

Viewpoints on coronavirus

The coronavirus shutdown is an extreme situation for the entire economy and is hitting the CNC industry hard, Oliver observed.

“Although there is huge uncertainty, we can be sure of one thing: falling into a state of shock is the most dangerous reaction to this acute situation and is therefore not an option. Instead, the best way to counteract the problem is with a mix of flexibility, optimism and solidarity. Because we will overcome this crisis together,” he revealed.

Oliver concluded, “Here at ORDERFOX.com, we want to play our part, which is why we are enabling CNC manufacturers and buyers to use our entire platform free of charge – for a dynamic and cooperative response to the shutdown.”

E-zine: http://edms.industrysourcing.com/ezine/20/06/imna.html?pagenum=26

Unlocking the power of 3D printing in time of crisis

As the coronavirus (COVID-19) situation continues to evolve, technology is playing a critical role in allowing for remote working. 3D printing can lead the way in helping manage current and future pandemics. 

3D printers, software and materials that work together seamlessly. (source: Ultimaker)

Ultimaker, the global leader in desktop 3D printing, provides business enterprises with the support necessary when and where they’re needed.

To give an insight on how 3D printing can support businesses where traveling to tradeshows and one-on-one interactions are difficult, International Metalworking News for Asia connected with Mr Benjamin Tan, Vice President of Ultimaker Asia Pacific. He disclosed how the company is responding to COVID-19, and details the evolving future of manufacturing, engineering and design paradigm.

Benjamin Tan, Vice President, Ultimaker Asia Pacific

“Covid-19 has disrupted industries around the world. As a result, global supply chains have also taken a major hit. Fortunately, many of our customers have seen minimal disruptions to their value chains, thanks to the distribution model enabled by 3D printing,” Benjamin said.

He explained that instead of manufacturing an item and shipping it to a warehouse in another country, 3D printing allows for digital files to be produced on-site. This has empowered our clients to circumvent the problems of border lockdowns globally, enabling their supply chains to remain open and fluid.

On a day-to-day basis, Benjamin and his team engage companies to identify challenges and areas of improvements, through multiple meetings and physical site scans. An important aspect of the buying process as it enables them to equip customers with industrial 3D printing knowledge. With face-to-face interactions no longer possible, they have been conducting virtual site scans to support their clients.

“As part of our channel and distribution model, a large part of our sales activities were driven through participations in tradeshows and workshops. Now that these avenues have been cancelled, we have turned to webinars, e-conferences and e-trainings with partners and customers alike to ensure business continuity,” he mentioned.

Affected industries and business strategies

During these period, Benjamin noted that many plants and factories are either on partial or full lockdowns. “As a sales organisation, it has certainly impacted the way we interact with our customers. Internally, we are taking the time to re-calibrate our efforts through more realistic forecasts and alignment of strategies, he remarked.

Externally, all hands are on deck to engage customers through webinars and e-conferences, he rationalised. “We are also equipping our partners with frequent, more intensive training on 3D printing so that they can better support customers with troubleshooting. This multi-prong approach helps us stand ready to seize opportunities when the pandemic is over,” added Benjamin.

Making realistic changes

According to Benjamin, many of the conversations that took place pre-COVID may no longer stand. Customers may face greater budget constraints and decision making may take longer.

“We will have to look out for changes in customers’ behaviours and sentiments, and respond accordingly. There may be a need to re-evaluate policies and agreements to work around the issues. We anticipate that there will be operational impacts. With a reduction in global demand, factories will not be producing at the same volume as they used to. This means a direct hit at the supply side. All these macro changes will require deeper discussions with our customers, so we can see how to better support them and cater to their needs,” he detailed.

Benjamin commented, “We can’t control what’s happening around the world, but we can control how we react to the crisis. As leaders, our employees turn to us to guide them through the crisis. From a business point of view, it may no longer be business as usual. Companies will be forced to digitise or change their business model. At Ultimaker, we have always been a digital-first company. Hence, from a technological standpoint, there would not be a drastic shift or transition.”

Strategically, the fundamentals will not change, he added. “However, the way we engage our customers has to change. We now have to adjust to a virtual mindset, encouraging virtual visits and workshops. We are still focused on giving our customers the support they require, physically or virtually. Team members will need to take on a more nimble approach towards remote working, empowered by tools such as Zoom, Microsoft Teams and Google Hangouts. This will be the new norm of working post-COVID,” he declared.

Repositioning for stability and growth

Benjamin believes that companies will be responding to competitive pressures, looking to reduce overheads and improving profit margins. He is positive that 3D printing technology which is an essential part of progressive business solutions and processes, is poised to transform the way companies do business.

“There are immense opportunities for 3D printing to be successfully harnessed in multiple use cases in key industries. Many manufacturers have already embarked on their digital journey, utilising 3D printing as an essential part of their automated workflow, boost their supply chains, or simply to help humans work smarter and more efficiently,” Benjamin expressed.

He conveyed, “We will continue to support our customers through the identification of areas of improvement and help them discover new applications to enhance their workflows and processes. With the right 3D printing infrastructure in place, companies can remain commercially viable through increased productivity and greater savings, as well as faster time to market. “

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Conclusion

Benjamin set out to enunciate that every crisis brings about opportunities and this is no different. “The pandemic has exposed vulnerabilities in global supply chains. With manufacturing environment becoming more volatile, businesses will be looking to simplify their supply chains. 3D printing has proven that it can plug the gap in a centralised manufacturing model and augments the need for digital manufacturing,” he stated.

Finally, he highlighted the imperative need for companies to transform or shape their business model to accommodate greater use of 3D printing, enabling sustainable growth.

Benjamin places a lot of value on the practical applications of 3D printing, specifically how this can help businesses in Asia Pacific region. He works closely with its network of sales partners to determine the best applications of Ultimaker’s solutions.

E-zine: http://edms.industrysourcing.com/ezine/20/06/imna.html?pagenum=36

Website: http://www.industrysourcing.com/article/unlocking-power-3d-printing-time-crisis