How the Concept of the Connected Manufacturer Accelerates Growth in the Aftermarket

In a keynote at the Aftermarket Business Platform 2024, Herbert Pesch and Vincent van Hellemondt from Valtech B2B unveiled how this approach drives growth in the aftermarket. 

By embracing connectivity across teams, technology, and customer experiences, manufacturers are unlocking new avenues for success. Here’s how the connected manufacturer concept is shaping the future of the aftermarket industry.

A Fragmented Industry in Need of Connection

Many manufacturers face a familiar set of challenges:

• Siloed Operations: Teams and systems often operate independently, leading to inefficiencies and misaligned objectives.
• Complex Distribution Channels: With global operations and varied customer profiles, consistency becomes a significant hurdle.
• Legacy Systems: Outdated IT infrastructure limits the ability to deliver seamless and personalised customer experiences.

Moreover, as products and spare parts become increasingly commoditised, manufacturers must shift their focus to service-oriented models. This transition promises higher margins, predictable revenue streams, and competitive differentiation, but it is not without its challenges.

The Connected Manufacturer: Redefining Relationships

The connected manufacturer addresses these challenges by fostering integration across four key areas:

• Connected Teams: Aligning all internal stakeholders under a unified service fosters collaboration across markets, brands, and departments.
• Connected Technology: Modern IT ecosystems enable easy integration of data, insights, and customer-facing platforms, supporting scalability and innovation.
• Connected Content: Tailored, relevant content helps manufacturers effectively engage customers, whether it’s through technical documentation, personalised recommendations, or marketing campaigns.
• Connected Data: As the “new oil” of business, data drives relevance and decision-making. Insights drawn from telemetry, customer activity, and operational metrics empower manufacturers to deliver solutions that matter.

This connected framework allows manufacturers to deliver more meaningful customer experiences while streamlining internal processes.

The Customer-Centric Lens: Creating Connected Experiences

Today’s customers expect more than products—they demand solutions tailored to their unique challenges. The connected manufacturer delivers on this through:

• Personalised Experiences: By analysing customer data, manufacturers can provide bespoke recommendations, such as suggesting the right spare part or showcasing how refurbished components can reduce carbon footprints.
• Simplified Journeys: A smooth customer journey reduces friction, allowing customers to move from inquiry to purchase with minimal effort.
• Omnichannel Touchpoints: Customers interact with brands through multiple channels, from online platforms to field service teams. The connected manufacturer ensures a consistent experience across these touchpoints.

The Aftermarket Advantage: Growth Opportunities

The aftermarket presents fertile ground for connected manufacturers. Key opportunities include:

Upselling and Cross-Selling

Using insights from connected data, manufacturers can identify opportunities to introduce complementary services or upgrades to existing customers. For example, predictive analytics can flag when a customer’s equipment might need an upgrade, providing timely interventions.

Service Monetisation

Service models like as-a-service offerings equip manufacturers to move from one-off sales to recurring revenue streams. Predictable income from these models can stabilise cash flows and foster long-term customer relationships.

Customer Loyalty

A seamless, personalised experience builds trust and loyalty. When customers know they can rely on manufacturers for proactive solutions and consistent support, they’re more likely to return.

Real-World Examples: Connectivity in Action

Pesch and van Hellemondt brought the concept of the connected manufacturer to life with tangible examples of innovation in action:

1. The Pit Stop Programme

Imagine a Formula 1 pit stop—but for technicians in the field. A European wholesaler developed a programme where service vans became hubs of efficiency:

• Stock Optimisation: Digital tools checked van inventory to ensure technicians were always equipped.
• Personalised Touch: Based on real-time data, technicians received suggestions for tools or parts to improve their work.
• Customer Care: Van cleaning and refreshments rounded out the experience, blending practicality with a human touch.

The Result: Increased customer satisfaction and a noticeable boost in sales for premium products, proving that thoughtful, hybrid strategies deliver results.

2. Sustainable Spare Parts

An industrial machinery manufacturer turned a dense R&D spreadsheet into an online tool that customers actually wanted to use:

• Ease of Use: Customers could calculate savings—both in cost and carbon footprint—by choosing refurbished parts.
• E-Commerce Integration: The tool simplified buying decisions by linking directly to the online store.
• Marketing Win: It became a powerful lead-generation tool, showcasing the company’s forward-thinking approach to sustainability.

The Impact: Customers felt empowered, sales grew, and the company positioned itself as a sustainability leader in the aftermarket space.

3. Breaking Down Silos

A global manufacturer struggled with overlapping digital services across multiple departments. Customers often encountered redundancy and inconsistency when interacting with different divisions.

To solve this:

• Teams unified their digital platforms to deliver a cohesive experience across departments.
• Shared goals and streamlined processes eliminated internal inefficiencies.
• Customers now navigate a seamless, singular system that reflects the brand.

The Result: Customers enjoyed a smoother, more consistent experience, while internal collaboration and efficiency improved dramatically.

Overcoming Barriers to Adoption

Transitioning to a connected manufacturer model has its obstacles. Common challenges include:

• Internal Resistance: Teams often hesitate to adopt new digital platforms or processes, especially if they lack training or alignment with organisational goals.
• Complex Customer Profiles: Catering to diverse customer needs requires balancing a unified platform with personalised experiences.
• Legacy Mindsets: Moving from a product-centric to a service-centric model demands cultural change within an organisation.

To overcome these hurdles, Pesch and van Hellemondt recommend starting small. Identify low-hanging fruit—such as improving a single touchpoint or aligning one department—and build from there. Early successes can create momentum and demonstrate the value of connectivity.

A Connected Future

Transitioning to a connected manufacturer model isn’t without its challenges. Internal resistance, diverse customer needs, and entrenched ways of working can all slow progress. But, as Pesch and van Hellemondt emphasised, starting small can make a big difference.

Optimise one touchpoint. Align one department. Prove the value of connectivity step by step. This isn’t just about technology—it’s about redefining how manufacturers think about their customers, their teams, and their growth. 

The connected manufacturer isn’t just the future of the aftermarket, it’s the key to staying ahead in an ever-changing industry. And as this transformation unfolds, one thing is clear: success will belong to those willing to connect the dots.