Can a Venti Vanilla Latte Teach Manufacturers about Cloud-Based Technology?

Starbucks Venti Skinny Vanilla Latte with Soy and an extra shot (of espresso, of course) has it’s very own stock keeping unit, commonly known as SKU, at Starbucks.

Think about that for a second.  That specific variation on a caffeinated beverage has it’s very own SKU.  Now think about every possible combination of drink you could make at Starbucks.

Great Coffee Pic, courtesy freeimages.com / http://www.freeimages.com/photo/1424632

Pictured: A Tasty Permutation

There are almost 15,000 SKUs at the coffee retailer. Whip, no whip, skim, 2%, whole, soy, full-sugar, sugar-free – the permutations seem endless.

Who’s driving this incredible level of product granularity? The customer is, of course.  Consumers are driving the new permutation with extraordinary specificity and demand for instant service and results.

Manufacturing Reality: This Customer Demand-Driven Product Development Has No End in Sight.

Go to BMW’s website and one can build-to-order (BTO) the precise vehicle, including interior leather choices, exterior paint choices, and thousands of other variables and options.

The customers are training the manufacturing sector with this mantra:

Make what I want, when I want it, or I will take my business elsewhere.

This insistence for a one-of-a-kind (or far from “off-the-shelf”) solution requires that new products be brought to market faster than ever.

Cloud-base technologies are making this possible.

At the Accenture Technology Vision conference it was noted, “The change is revolutionary. Industrial companies are becoming customer service companies. Consumer products companies are becoming Internet companies. Energy companies are becoming information companies. And media and entertainment companies are becoming logistics companies.”

The Impacts of Rapid Time-to-Market on Manufacturing

The core objective that lean manufacturing organizations are targeting in 2015 is to cut in half the time-to-market for new products using cloud-based infrastructure.1401832_64678175

This initiative is based on need. Competition will capture new product market share and build brand loyalty simply by getting to the consumer first.

Reduced time-to-market for new product rollouts is a specific technique that is only made when the supply chain (all suppliers and enterprise-wide manufacturing process) can view real-time data worldwide as one accurate source of production information.

Fast time-to-market translates rapidly to faster time-to-revenue; improved cash flow results.

How Manufacturers Can Improve the Customer Experience While Exceeding Expectations

Improved customer experience and satisfaction is being made possible with new cloud-based technology solutions.1009860_34100924

With more than $100B in online sales during this past holiday season, up 13% from 2013, the increasing role of integrated omni-channel solutions is irrefutable. Flexible cloud-based platforms are providing the end-user customer, the warehouse and distribution center, the manufacturer, the supplier of raw materials to the manufacturer, a simplified process to meet the unique challenges of selling and activating connected devices.

Year-round consumers demand a seamless retail experience whether in brick and mortar stores, on-line worldwide, or on their phone. The transaction has to be exact and quick – whether it’s a custom luxury vehicle, personalized smart-phone case, or tall Pumpkin Spice Frappuccino.

Bringing new product to a consumer who maintains a positive experience with a brand will drive dramatic, even exponential revenue growth. A grim diagnosis awaits manufacturers and brands that ignore the customer demand for variety and unique personalized purchasing.

What do you think? Let’s have a conversation! Contact us and see how we can work together to solve these kind of data-driven challenges.

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