ARTICLES — May 24, 2021

How C2M Model Can Improve Manufacturing Business

Recently, there is a rise in consumer to manufacturer (C2M) interaction. With the direct connection to customers, manufacturers are now able to answer customers' wants. During the pandemic this model has gained popularity due to the increasing practice of online purchase. Additionally, the connectivity provided by the IoT technology not only improves product monitoring systems but also complements the customer interaction to manufacturers.

China has experienced significant growth in the usage of the C2M model. It is considered as a disruptive development which has gained tremendous support from large companies. According to David Liu of Pinduoduo, the C2M initiative in their company has pledged to help local manufacturers to achieve $150 billion total sales in the next 5 years by supporting the development of domestic brands.

With direct customer relation, this model innovates the way supply chain works by cutting down intermediary distribution which allows effective production process and saves production cost. In general, here is how C2M model can improve manufacturing businesses:

1. Provides Data-Driven Insights

C2M utilizes big data to identify market demands. In turn, manufacturers have more control over their production in response to the demands. Manufacturers will be benefited with the data recorded from their sales. By analyzing the sales trend directly from their customers, they will be able to choose which products will sell better in the market. This is supported by the IoT technology which helps with data processing analytics from sensors and from smart devices used by consumers.

2. Appeal to Niche Market

C2M will not only boost the production sales for the most popular products. By stating demands directly to manufacturers, customers are allowed to customize their orders specific to their needs. By fulfilling these demands, which will also augment customer experience, manufacturers will likely see a repeat order. According to data by JD, the C2M model also shortens the research time by 75% compared to 67% by conventional means. This means C2M can improve market precision to gain access to niche markets.

3. Reduce Production Waste

Conventional retail models require manufacturers to guess their market demands. Their customer insights depend on how well their products are sold by resellers. Consequently some products that aren't sold well enough may be discarded and regarded as production waste. By implementing C2M models, manufacturers can tailored their production based on customer’s needs, effectively reducing excessive inventories and production waste and ultimately save production cost.

C2M improves production effectiveness, enhances customer experience, and helps manufacturers to get direct feedback on specified products. Gone are the days where consumers have to struggle finding products specific to their needs. Gone are the days where manufacturers had to make assumptions of consumer’s needs.

With the mainstream use of online purchase, IoT can enhance C2M by providing monitoring systems in manufacture which will improve connectivity between production process and consumer’s demands. With big data analytics at your disposal, you have the control over the future of your business through data-driven insight. It’s your turn to utilize IoT technology to improve efficiency and flexibility for your manufacturing process. Contact us to learn more at https://telkomseliot.com/en/contact-us.

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