How to migrate your manufacturing process to the cloud
Cloud services are transforming virtually every facet of modern manufacturing. Whether you like it or not, the future of manufacturing is cloud manufacturing, and it’s looking bright! From lowering the cost of production to accelerating innovation, the benefits of cloud services in manufacturing are endless.
Whether you’re a traditional company or high-tech startup, cloud manufacturing offers many strategic advantages for organizations. From the start, a cloud manufacturing platform eliminates the costly and time-consuming processes of selecting the right manufacturing partners, obtaining attractive offers, quality assuring new partners and handling all production logistics. The time and resources saved can fuel innovation and be spent developing products that will make the world better.
But how do you make this move to the cloud? We know that moving all of your manufacturing demand to the cloud may feel daunting, and you may not know where to begin. But we’re here to walk you through it! We’ll show you how to make the transition as seamless as possible in just five simple steps. And we’ll share some examples of companies who did it successfully with great results.
Experts predict that 80 percent of companies will have closed their traditional data centers by 2025. Everything is moving in this direction, for good reason!
Here’s why cloud services are the right solution to drive growth and remain competitive today.
The impact of cloud manufacturing:
- Significant cost savings—you only pay for what you use, without a large capital investment.
- Access to the best manufacturing capacities worldwide
- Improved technical support and consulting from cloud service providers.
- Ease of use—the cloud does not require implementation or adjustments of the internal data infrastructure.
KREATIZE Manufacturing Cloud—the optimal solution
Our KREATIZE Manufacturing Cloud gives customers access to production capacities without additional investments. It is as if you owned an expensive machine park without having to buy all the equipment and build it from the ground up. The acquisition of expensive manufacturing systems and lengthy inquiry and quotation processes are a thing of the past thanks to KREATIZE.
Here’s how to migrate your processes to the cloud in five simple steps with the help of our Manufacturing Experts:
1. Analysis & Discovery:
To start, we get to know each other and define your current needs and challenges. We will analyze all your parts and requirements in a joint workshop where we will identify opportunities and areas where KREATIZE can help optimize your product development process.
2. Roadmap Definition & Proof of Concept:
The next step is to define our specific use cases and determine a roadmap for how we will proceed. We always start with concrete and actionable use cases that will add immediate value for your business. Most importantly, we will define measurable goals to be achieved through your collaboration with KREATIZE.
3. Activate KMS & Initial Testing:
Your team will receive access to the KREATIZE Manufacturing Cloud, where you will upload your parts, together with one of our experts. With just a few clicks, you can now optimize each component, adjust the quantity, the material and the further processing and place an initial test order.
4. Begin Production:
KREATIZE will find the right manufacturing capacities for your specific part, process and material. In order to make everything as easy and convenient as possible for you, KREATIZE is your only contact during the entire production process. We guarantee that your custom parts meet all of your requirements and take care of the logistics. This means that you do not need to deal with suppliers or quality issues as we work hard to reduce the workload for you to a minimum.
5. Increase Project Scope + Long-term Partnership:
We work in close contact with each supplier and will be in constant communication with you to ensure maximum customer satisfaction. Over time, we can work together to increase the component complexity, introduce new projects, and explore strategies for our longer-term partnership.
See it in practice! Here are three companies who made the transition to the cloud and the business results they have achieved.
Example 1: International company meets global sourcing partner
Company at a glance
- International manufacturer of assembly tools for the furniture industry.
- Sales = EUR 2 billion
- Employees = approx. 10,000
- Procurement volume = approx. EUR 50 million
Cumbersome, expensive and time-consuming purchasing of special parts due to local procurement and central procurement system. In order to remain successful internationally, they needed to:
- Optimize their procurement process to be less resource intensive
- Enable their teams to be more agile in the design and development process
- Reduce local dependencies with a broader supply network
KREATIZE was brought on as their global sourcing partner to automate their procurement processes. As a result, collaboration between procurement, engineering and production planning was increased and improved.
Additionally, the company gained:
- Access to an global manufacturing network
- A single source for managing their entire supply-chain (including: manufacturing, post-processes, shipping, warehousing and payments)
- Expertise in scaling
With our approach, this company saved 10% in unit costs by securing more attractive hourly rates through an expanded global supplier network (via KREATIZE).
Example 2: Agile product development reduces procurement bottlenecks
Company at a glance
- Provider of weighing, cutting and weigh-price labeling technologies for the food industry
- Sales = EUR 700 million
- Employees = 5,000
- Procurement volume = EUR 25 million
Lengthy time-to-market due to long-standing, rigid internal processes and inefficient iteration loops. As a result, the company was facing:
- High project costs—up to 30% due to purchasing
- Lack of systematic approach to control product development and manufacturing costs (could be reduced by up to 70%)
- Procurement bottlenecks put workflow up to 5 days behind schedule
We recommended adjustments to the development process to make maximum use of valuable time. The more agile processes recommended will have a lasting positive impact on the price and design of the product. Additionally, KREATIZE helped them achieve:
- Reduction in headcount due to decrease in purchasing resources needed
- Design-to-cost techniques immediately implemented in engineering
- Scaling for series production with optimized cost through machine hourly rates
- Elimination of the RFQ process
This company achieved a 25% reduction in time-to-market with KREATIZE.
Example 3: One-stop shop manages entire purchasing process
Company at a glance
- High-tech startup
- Sales = EUR 3m
- Employees = 50
- Procurement volume = EUR 500k
As you can imagine, the challenges are different for a company of this size. For this company, challenges included:
- No existing supplier network
- Successful growth heavily reliant on seamless scaling of production
- Viability of the product concept depends on agility and rapid response times
KREATIZE provided a one-stop solution for handling this company’s entire purchasing process, allowing them to:
- Manage and expand their production technologies
- Receive the highest level of expertise in ramp-up
- Ensure reliable procurement via KREATIZE cloud manufacturing service
- Benefit from expertise and advice on product development from our experts
With KREATIZE this company saved 80% in its total cost of procurement.
We are proud to say that our offer has been well received by businesses of all sizes and we work hard to offer each customer the right solution. Get your account for the KREATIZE Manufacturing Services today
If you would like to learn more about the KREATIZE Manufacturing Cloud, our experts will be happy to speak with you. The best thing to do is to make an appointment with them today: Book a meeting with our Cloud Manufacturing Specialists.