Linde Consult - blog

Linde Consult incorporates into LC Management & Strategy B.V.

Thu, 26 Mar 2026 15:10:29 GMT

PRESS RELEASE 26/3/2026: Linde Consult incorporates into LC Management & Strategy B.V.

Dear valued partner,

We would like to inform you of an important organizational update regarding Linde Consult.

As of now, Linde Consult Adviesbureau will be formally incorporated into LC Management & Strategy B.V.

We kindly ask you to change your registration of Linde Consult into LC Management & Strategy B.V. - relevant details such as VAT-number and registration number below.

This step has been taken in response to the continued growth of our activities and the introduction of new strategic priorities, for which a B.V. structure is the most appropriate foundation.

What will change:

Future proposals and invoices for strategic advice, market research, and project management will be issued by LC Management & Strategy B.V.
The LC Platform (including market intelligence) will be rebranded as Venactio Platform and placed in a separate legal entity: Venactio B.V.
The Venactio team will maintain & grow the platform, using the latest AI-powered functions to supply extraordinairy insights.
Subscribers of the LC Platform will retain access and, later this year, will be migrated to the Venactio Platform — an even more advanced market intelligence environment.
The activities of LC Management & Strategy will expand outside of Food Processing & Handling Industry.

What will remain the same:

The trade name Linde Consult will remain unchanged, website and brand identity will remain the same.
Strategic advisory services will continue under LC Management & Strategy B.V.

We believe this structure enables us to serve you better, with increased focus, scalability, and long-term continuity.

Should you have any questions regarding this update, please do not hesitate to contact us. Thank you for your continued trust and cooperation.

Kind regards,

Linde Consult, now LC Management & Strategy B.V.

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LC Management & Strategy B.V.

Stijn Buysstraat 8, 6512CP, Nijmegen, The Netherlands, info@lindeconsult.nl, www.lindeconsult.eu

Chamber of Commerce registration: 83308830
VAT number: NL862823390B01

Bank account: NL34 RABO 0371 8456 45

Start-ups powering the Food Processing Industry Innovation

Mon, 04 Aug 2025 11:04:50 GMT

Fermentation, Fungi & Fish Cells: The Startups Powering the Future of Food Processing

As traditional protein supply chains face pressure from sustainability, health, and cost concerns, the alternative protein sector is emerging as a crucial innovation arena. But beyond the headlines about lab-grown burgers and oat milk cappuccinos lies a quieter revolution: the reinvention of the food processing value chain itself .

At Linde Consult, we help equipment OEMs and food system investors navigate the shifts that matter. And right now, a new generation of startups is reshaping how ingredients are made, structured, and scaled — with direct implications for machine builders, automation providers, and integrators.

Here are the 12 startups we’re watching closely :

Precision Fermentation: Animal Proteins Without Animals

1. Perfect Day (USA)
They’re producing whey and casein — the core proteins of dairy — using genetically engineered microbes. These bio-identical proteins are now powering everything from ice cream to protein bars, without a single cow.

2. Formo (Germany)
Formo is Europe’s answer to Perfect Day, bringing biotech precision to cheese. Their fermentation platform creates real dairy proteins for mozzarella, ricotta, and more — all animal-free.

3. Imagindairy (Israel)
Scaling up fast, Imagindairy is building large-scale dairy protein fermentation infrastructure to enable industrial production volumes for B2B partners.

Mycelium & Mycoprotein: Fungi as Food

4. Infinite Roots (Germany)
Raised $58M in 2024 to become Europe’s mycoprotein leader. Their fermentation process grows nutrient-rich fungal biomass for whole-cut meat alternatives — with minimal land or energy.

5. Optimized Foods (USA)
Pioneers of MycoCarrier™ , a novel technology that encapsulates fats, flavors, and micronutrients within mycelium for better alt-meat structure and mouthfeel.

Cultivated Seafood: From Bioreactor to Plate

6. Wildtype (USA)
The first cultivated salmon to reach U.S. restaurants, Wildtype grows coho salmon in bioreactors — no bones, no scales, no oceans required.

7. Atlantic Fish Co (USA)
Focused on high-value whitefish like black sea bass. They’re building cell lines and growth media optimized for scalability and taste.

8. BLUU SEAFOOD (Germany)
Europe’s cultivated fish contender. Their tech enables room-temperature bioprocessing — reducing energy costs while pushing toward whole-cut fish fillets.

Enabling Tech: The "Picks and Shovels" of Food Biotech

9. CellulaREvolution (UK)
This startup makes continuous bioreactor coatings and serum-free systems to unlock commercial-scale cultivated meat.

10. Fisheroo (Singapore)
Think of them as the AWS of cultivated food. They offer cell lines, growth media, and scaling solutions for other startups and OEMs entering the cultured space.

11. Mooji Meats (UK)
Disrupting the structural challenge of alt-meat, Mooji's 3D-printing tech can produce marbled whole cuts with unmatched speed — up to 250× faster than competitors.

Extreme Innovation: Protein From Air, Not Soil

12. Solar Foods (Finland)
Their product Solein is made from air — literally. Using microbes, CO₂, and electricity, they produce a 70% protein flour that could decouple food production from agriculture entirely.

What This Means for OEMs and Food System Leaders

These companies are not just ingredient innovators — they’re process disruptors . They're reshaping what “scaling up” looks like in food manufacturing.

Bioreactors and fermentation tanks are replacing pastures and fields.
3D-printing and encapsulation are redefining how texture and taste are built.
Low-footprint, high-yield systems are being designed from scratch — and they need equipment partners to make it happen.

At Linde Consult, we believe this convergence of food science and industrial engineering presents both a challenge and an opportunity: OEMs must adapt their equipment strategies to match this new paradigm, or risk missing the next big wave in food tech.

Ready to Engage?

Whether you're a machine builder, automation leader, or investor, Linde Consult helps you translate market shifts into strategy. Contact us to explore:

Strategic partnerships with next-gen protein startups
Go-to-market planning for new equipment lines
M&A and investment opportunities in precision fermentation or cellular agriculture

JBT Marel Acquisition - Analysis & Impact

Wed, 09 Oct 2024 09:54:36 GMT

What will be the impact of the JBT purchase of Marel?

In recent months, we have thoroughly examined the intricacies of this strategic merger, expected to transform the global food technology landscape—establishing a formidable leader in food tech innovation.

We spoke with a number of stakeholders including investors, industry watchers, JBT and Marel people and customers about the acquisition’s potential impact, to answer 20+ critical questions .

What did we find?

While you need to purchase the full report to get all answers, we can share the following in this article:

Market share of the combined company

JBT Marel is strategically positioned to emerge as a leading player in the Poultry Industry, currently holding an impressive combined market share of 20% . In addition, the company has established itself firmly in the Seafood Industry, boasting a noteworthy combined market share of 10% .

Beyond these primary markets, JBT Marel also claims a combined market share of 6% in the growing field of plant-based products, along with 8.2% in the pet food segment.

Moreover, JBT Marel benefits from a significant presence in related sectors such as pharmaceuticals and nutraceuticals, which presents exciting opportunities for expansion and innovation.

It is worth noting that many food supplements and pharmaceutical pills are produced using equipment that is similar to what is employed in food processing, particularly during the secondary and subsequent processing stages.

This overlap not only underscores the versatility of JBT Marel's technology and expertise, but also highlights the potential for cross-industry synergies that could further enhance the company's market position and growth prospects.

Share price of JBT after Marel integration

From October 2024 to December 2025, we anticipate a 12% rise in JBT FoodTech shares, followed by a 12.5% increase in 2026. The projected price per share is expected to reach 125.15 USD by year-end 2026.

Business area's in which JBT Marel would offer a winning solution

The merged company is poised to deliver a robust portfolio of comprehensive Poultry Processing solutions, encompassing equipment for every stage of the process—from live bird handling, killing, and evisceration, to cut-up and deboning, followed by weighing, grading, sorting, batching, as well as packing, boxing, and labeling.

In the realm of Further Processing Solutions (cooking, baking, cooling, freezing, coating, frying, etc.), the combined entity is expected to be able to compete well with players such as Provisur, Middleby, Handtmann, and Vemag.

We believe that exploring the niche market of ‘Rendering’ poultry and seafood offal presents a valuable opportunity for the newly formed company.

In the Petfood segment, numerous innovations from Marel—ranging from deboning and meat scrap collection to grinding, forming, baking, X-ray vision technology, metal detection, and AI-driven software—could significantly enhance the offering.

The conclusion?

The JBT FoodTech-Marel acquisition stands on solid ground, with a high likelihood of success due to the remarkable alignment of the two companies. Their shared culture, vision, and corporate DNA create a natural synergy, while the compatibility of their product and sales portfolios paves the way for seamless integration.

Moreover, we believe this merger presents significant opportunities not only for growth through an expanded global presence and enhanced innovation capabilities but also for operational cost efficiencies. By combining resources and streamlining processes, the newly merged entity will be well-positioned to unlock long-term value and drive the future of food technology.

Get your full report now!

Packed with detailed analysis, data-rich tables, compelling figures, and vivid illustrations, this report is an invaluable resource for investors, decision-makers and industry leaders in Food Processing.

Don't miss out—order your copy today and stay ahead of the curve!

Trends, challenges, outlook 2025 - Food Industry

Thu, 26 Sep 2024 11:14:29 GMT

Unlock Your Competitive Edge: Key Executive Recommendations based on the Linde Consult 2025 Food Processing & Handling Industry Survey.

Embrace Technology: Supercharge your Food Processing Equipment operations by investing in cutting-edge tech like automation, AI, robotics, and IoT. These innovations can streamline production, slash labor costs, and enhance your agility to meet evolving market demands. Elevate your processes and stay ahead of the curve!
Stay on Top of Trends & Challenges: Keep your finger on the pulse of the latest consumer demands, from plant-based proteins to eco-friendly packaging. By aligning your products with market trends, you position yourself as an industry leader. Regularly engage with your audience and stay informed to fuel your R&D and drive growth.
Prioritize Process Improvements: Embrace Lean Manufacturing and Six Sigma to boost efficiency, cut waste, and speed up product launches. Focusing on continuous improvement not only enhances quality but also sets you apart from competitors. Innovate faster, deliver better, and lead the market.
Go Green: Sustainability is no longer optional; it’s a necessity. Adopt eco-friendly practices across your operations—from sourcing to waste management—to appeal to environmentally conscious consumers. Innovate with sustainability in mind and differentiate your brand as a leader in responsible manufacturing.
Collaborate for Innovation: Partner with suppliers, universities, and research institutions to access new technologies and ideas. Collaboration fuels breakthroughs in food safety, energy efficiency, and novel product development. Expand your network and leverage collective expertise to stay at the forefront of industry innovation.

Ready to transform your business? Embrace these strategies and lead the future of food processing and handling!

The 2025 Research Report on trends, challenges and future outlook is now available. ��

Q&A MeatingPoint Magazine - Competitive Intelligence (CI)

Mon, 09 May 2022 09:58:26 GMT

Q&A with Aylin Nedzhib from MeatingPoint Magazine - April 2022

Q: Mr. Schalk, what does Linde Consult offer?

Linde Consult offers Strategic Advice, Market Research and Project Management to the Food Processing & Handling Industry. At the heart of our business lies the Food Processing & Handling Database filled with details about the Competitive Landscape. We sell access via a subscription fee. Customers can also opt to buy one-off reports and lists with the data and insights they require.

Q: What does Competitive Intelligence (CI) stand for?

Competitive Intelligence (CI) is the practice of monitoring, gathering, and analysing data on your competitors and industry to make better business decisions. It can help brands identify gaps in their strategies and discover growth opportunities.

Our mission is to assist clients with this and we focus on the requirements and expectations of the customer and approach every project with a balanced mix of theory and practice.

Q: Who are your target customers?

In the past, primarily enterprise level companies and industry watchers had the resources to invest in CI of the kind we offer, but Linde Consult now makes it available to companies of all shapes & sizes, and to a much wider user-group:

Executives can use the data to define strategy and roadmap for growth.
Sales teams are equipped to fight objections and address pain points.
Marketing teams can adjust their messaging to better reach their user personas.
Product Development teams can better understand competitors’ solutions & models.

Q: Can you name some of your clients? How do you approach new prospects?

Because of the sensitive nature of our business, we cannot share too many details about our customers but amongst clients are OEMs like Marel, Baader and Peruza; Food Processors like Biovela, and various large consultancy firms, industry watchers (banks), and investment firms that use our valuable data to analyse the competitive landscape, compare OEM product offerings, view M&A activities, and find opportunities.

New clients typically reach out to Linde Consult because they have heard about our database and reports from colleagues in the Industry, but sometimes we advertise or share insights or research results on trends, challenges and future outlook which leads to new business.

Q: What is this Dashboard with Competitive Intelligence for the Food Industry?

The Linde Consult FP&H Database has been in development for over two years now and includes detailed data on the 250+ most prominent OEMs active in segments Poultry, Meat, Seafood, Bakery, Vegetables/ fruits/nuts, Beverage and Dairy. The level of detail is unmatched! Users with access can filter through a treasure of relevant competitor data on e.g. industry segment, company size, revenues, strength of vision, and ability to execute. As well, they can drill down on the product portfolio as marketed by the OEMs and analyse data per processing (sub) step, category, species, to answer specific questions like:

Which OEMs offer the best Poultry cut-up & deboning solution?
What are potential fits/ gaps between product offerings of supplier A, B and C?
Which equipment manufactured by a Poultry OEM could also be adjusted cross-segment to fit Meat or Plant based requirements?
Which OEMs are strong in onboard equipment for shrimp grading?
How does equipment compare on throughput, no. of operators needed, or price?
What are strategic groups, and why are they clustered?
Which OEMs offer the best End-of-line solutions for the Baking industry, packing & labelling or stuffing & filling? Are they also present in Poultry, Meat and Beverage segments?

The dataset is growing fast, but at the time this is written is contains 10K+ machines and solutions described and scored on technology level, design sophistication and build quality. You can even view estimated installed base, equipment prices, strategic partnerships, ownership, and M&A activities.

Q: What is your competitive advantage? What’s your highest achievement as a company?

The main competitive advantage of Linde Consult is that we manage the largest Food Processing & Handling Database in the world. In total, it includes 60000+ accounts (600 OEMs and 60000 Food Processors around the world). The OEMs are registered with tonnes of data you cannot find anywhere else. Users of our database get a full overview of the OEMs equipment offerings with loads of variables to slice, dice and filter.

To illustrate, uses can filter all sorting machines in segment ‘Meat’ and processing step ‘Secondary processing’ on variables ‘technology level’, ‘design sophistication’ and ‘build quality’.

Till now, our best achievement as a company is to have designed and build this database that is now being used by hundreds of users. We are leading the way in defining the Food Processing & Handling Industries best-practise to use market intelligence and hope to assist many clients in the future to optimise their business based on our insights and data.

Competitor Intelligence (CI)

Thu, 17 Feb 2022 09:39:30 GMT

Competitive Intelligence (CI) is the practice of monitoring, gathering, and analysing data on your competitors and industry to make better business decisions. It can help brands identify gaps in their strategies and discover growth opportunities. This article presents the new Linde Consult Competitive Intelligence Dashboard, dedicated to the FP&H industry, and explains why you should start using it right away.

What is this Dashboard with Competitive Intelligence for the Food Industry?

The Linde Consult FP&H Database has been in development for 2 years now and includes detailed data on the 250+ most prominent OEMs active in segments Poultry, Meat, Seafood, Bakery, Vegetables/fruits/nuts, Beverage and Dairy. The level of detail is unmatched!

Users with access can filter through a treasure of relevant competitor data on e.g. industry segment, company size, revenues, strength of vision, and ability to execute. As well, they can drill down on the product portfolio as marketed by the OEMs and analyse data per processing (sub)step, category, species, to answer specific questions like:

Which OEMs offer the best Poultry cut-up & deboning solution? What are potential fits/gaps between product offerings of supplier A, B and C?
Which equipment manufactured by a Poultry OEM could also be adjusted cross-segment to fit Meat or Plant based requirements?
Which OEMs are strong in onboard equipment for shrimp grading? How does equipment compare on throughput, no. of operators needed, or price? What are strategic groups, and why are they clustered?
Which OEMs offer the best End-of-line solutions for the Baking industry, packing & labelling or stuffing & filling? Are they also present in Poultry, Meat and Beverage segments?

For whom? For everybody!

In the past, primarily enterprise-level companies and industry watchers had the resources to invest in CI like this, but Linde Consult makes it available to companies of all shapes & sizes, and to a much wider user-group:

Executives can use the data to define strategy and roadmap for growth.
Sales teams are equipped to fight objections and address pain points.
Marketing teams can adjust their messaging to better reach their user personas.
Product Development teams can better understand competitors' solutions & models.

Start now!

It has never been easier to start. Once you have access, you can begin taking advantage while the Linde Consult team continues to add OEMs, equipment, and relevant data, ensuring data quality. No need to hire an expensive business analyst or build your own reporting tool. It is all there!

Now available - 2021 FP&H OEM Research Report and Competitive Landscape

Mon, 16 Aug 2021 14:27:38 GMT

Now available: The 2021 FP&H Food Processing & Handling OEM Research Report and Competitive Landscape.

The 2021 report includes even more value than last year’s report. We added more insights about market size and market dynamics, and we received a significantly larger number of responses to the survey that was extended with several relevant questions about trends, challenges and future outlook for the Industry.

Key questions answered:

Who are the ~130 key manufacturers of slaughterhouse & food processing equipment?
What is their size (no. of employees, turnover)?
What is their position in the Competitive Quadrant (leader, challenger, visionary, niche player)?
How strong is their equipment offering in the various segments of the value chain?
Filter on Primary, Secondary, Further processing / Value-add, Software, End-of-line equipment.
What is their relative competitive strength, categorised per industry segment, (sub)process?
What will the food processing equipment manufacturing market look like by 2030?
What are the key market trends in industries Poultry, Meat, and Seafood?
What is driving these markets?
What are the challenges to market growth?

What's included in my purchase?

Access to full written report
Full PPT slide deck
Full PDF report
Power BI report with tables, graphs, lists and various filters.
Access to updates of the report within the year.

Need a customization to the report? An analysis of a certain OEM or market segment? Or perhaps you are looking for a Prospect List of FP&H equipment buyers ? Contact us to discuss the possibilities!

Click here to read more and order your copy of the report now.

Case Study - How Business Intelligence helps OEMs to be succesful, fast!

Fri, 25 Jun 2021 10:54:59 GMT

Good market intelligence can be the banks to the river, the lamp to the fire and the ravine to the rockslide. This case study describes how Linde Consult supplied a Food Processing & Handling Equipment OEM with the right market intel and prospect lists to catapult their sales.

Case - compile CRM-ready marketing list, fast

This OEM had spent years to develop a new and innovative automatic sorting & batching solution with enourmous throughput capabilities, more waste reduction, and low operational cost. When the solution was ready-for-sale, a competitor also launched a similar machine on the market. How do you effectively market & sell that machine to the right customer target group in a matter of weeks and convince them to buy your solution?

Solution - FP&H database query

Linde Consult owns the largest FP&H database in the world, containing data on supply & demand sides.

We started out with a definition of the ´perfect customer profile´ based on the variables Food Processing Industry Segment, Geographical Area, Company Size, and Type of Products.
Then, we queried the database and found around 250 potential buyers for this new automatic sorting & batching solution. We checked which other competing robotic sorting & batching solutions were already in the field, and also which potential buyers had been requesting proposals for such equipment recently.
Finally, we cleaned the list and added contact person´s names, titles and e-mail addresses and entered the list into the client´s CRM system.

Results - optimised prospect lists & quick sales cycle

Our client managed to reach out to the targeted group of prospects much quicker than their competitors, which gave an advantage. The list only contained eligible prospects that had shown an interest and/or need for a sorting & batching solution.
A good number of targets reacted positively and were invited to the demo-center.
Many of the prospects asked for a proposal and accepted it.

If you also want to receive CRM-ready prospect lists with FP&H equipment buyers from all over the world just reach out via info@lindeconsult.nl.

Digital Services Design for Equipment Manufacturing Companies

Fri, 23 Oct 2020 11:44:07 GMT

Digital Services Design for Equipment Manufacturing Companies

In this article Aart Schalk , Senior Management Consultant at Linde Consult and Noventum , shares how you can start designing digital services and how to manage the service transformation.

Equipment manufacturing companies increasingly innovate their (service) product portfolio by creating solutions that combine product and service components. However, shifting from a product-centric perspective to a service-centric perspective is challenging for a number of reasons. In this article I explain how to successfully transform into a service-centric organisation by using the Product Service System (PSS) approach in combination with Service Dominant (SD) logic to design and deliver the right digital services for your customers. In simpler terms: combining product related and customer business related service design.

From product-related to customer business related service design

Typically, equipment manufacturing companies apply product related service design and do not pre-produce value but strictly offer value propositions that customers convert into value through usage. Think of product related services such as (extended) warranty, preventive maintenance schedules, and availability services through service level agreements.

Here, customers are always co-creators of value by integrating the company’s offerings with their collection of resources, including personal skills and capabilities. Example: A food processing customer has an issue with a cutting machine and orders a spare part via an online portal. The part arrives the next day in the hands of the maintenance crew who replaces it as described in the manual and restarts the machine. Problem solved, right?

This product-oriented perspective has influenced how services are designed and led to a) the development of product related service offerings that facilitate customer value co-creation processes and b) to focus on service levels and outcomes for customers. While good reactive service and quick delivery of parts is appreciated by customers, the manufacturing industry has the opportunity to offer more advanced services that generate higher customer satisfaction, loyalty, and more margin at the same time. Let’s see how!

Bundling product related service solutions: Servitization

To address globalization and rapid technological development, manufacturing companies now start to use the customer business related service design approach in combination with product related service design in an attempt to integrate services in their product offerings to create more complete solutions. This transition is referred to as ´Servitization´. It consists of shifting the business from selling products to offering product-service system solutions.

Product related service solutions are bundles of product and service components intended to co-create value-in-use for customers and are usually supported by organisational networks and systems. Good examples here are Rolls-Royce (power by the hour) and Xerox (managed print service).

This perspective has influenced how services are designed as well and has led to a) customer business related services and b) addressing latent customer business needs through proactive service delivery. These more automated and advanced services typically include customer process and business optimisation via outcome-based services, business transformation and even value chain optimisation. To become a successful proactive service organisation enabled by digital services takes time and effort. Let’s take a look at how you can achieve your goals.

How-to-guide: Service transformation journey

So, where do we start? Noventum Service Management defined a three-phased transformation journey grounded in research; tried and tested for over 20 years in various industries and all around the world.

1. Setting the climate for Servitization

Identify customer service needs
Calculate growth potential
Design customer experience per segment
Assess internal operations
Calculate the profitability potential

2. Deal with organisational resistance

Set up regular steerco’s with senior management
Design transformation and engagement strategy
Inform organisation with senior management
Execute transformation and engagement strategy

3. Develop internal skills and capabilities

Design and pilot the value proposition and service business models
Design service delivery model
Define IT infrastructure
Redesign organisation with senior management
Fill in the new organisational design and train people on new role
Implement net organisation
Scale up services

To conclude: Service transition is a journey, not a destination. So approach it accordingly. Celebrate your successes along the way; and use failures as learnings so you can do better next time.

Note1: This article was first published on the Noventum LinkedIn pages and website in October 2020.

Note2: In case if you want to learn more about how to develop new digital value driven business models, Noventum just launched the Leadership in Digital Service Transformation , an online training about how to lead a service transformation.

How-to-guide: Driving Growth in the Food Processing Equipment Manufacturing Industry 2021 - 2030

Wed, 23 Sep 2020 09:47:14 GMT

How-to-guide: Driving Growth in the Food Processing Equipment Manufacturing Industry

Early 2020, Linde Consult started an extensive research project with the objective to create a full insight in the competitive landscape of the 100 most prominent manufacturers of food processing & slaughterhouse equipment in the industries of Fish, Meat and Poultry ( see here ).

Research results

Besides describing, analysing and presenting conventional market data such as company size, turnover, number of employees, product portfolio and head quarter location we mapped the relative competitive power of the big-100 (using strength of vision, and ability to execute as coordinates) and presented current trends and challenges that influence how manufacturers develop their business. The research results are in fact the recipe for growth in the food processing equipment manufacturing industry.

How trends influence growth

One of the main findings of the research are that currently, technological and economical mega-trends affect the Food Processing Equipment Manufacturing Industry most. Political, Sociological and Environmental trends also play a role but have less impact on growth so we focus on technologic and economic trends in this how-to-guide. Factually, trends have the power to influence a whole industry, forcing the complete set of competitors into a certain direction with regards to product & business development.

Not surprisingly, the technological trend has a big impact on the equipment manufacturers thanks to new Industry 4.0 functionality becoming readily available, and thanks to customers now demanding more digitalisation and automation in products, services, and solutions that are a combination of both products and services. This drives the development of connected ‘smart’ equipment.

I n parallel, the economical trend drives manufacturers to develop new business models with focus on outcome-based services that have become available and deliverable with the new technologies they developed as a result of the technological trend.

Combining the two strongest trends (blending new technology-driven services with a new service-delivery business model) is currently the juiciest recipe for growth in the Food Processing Equipment Industry.

How can your manufacturing business drive growth?

What can you do right now to capitalize on these new insights? How can you drive growth?

To follow the technological trend, think about starting initiatives around integration of smart sensors in critical parts and equipment; connecting client-site equipment to the internet; and collecting, analysing and enhancing big data from Installed Base to name a few.

To follow the economical trend, think about how to adapt or develop your business model so customers pay for a service contract including SLAs (service level agreements on uptime, performance, and outcomes); explore leasing of equipment instead of selling it; and investigate how you could provide valuable data & knowledge to your customer with dashboards showing enhanced data on uptime & performance; applying data mining and algorithms to find and predict patterns on e.g. wear & tear of critical parts; and development of new remote service capabilities and pricing strategies.

Of course, changing your organization is never easy and you should prepare for a lot of strategy work and fulfilling prerequisites. Don’t let it stop you! Start to identify your low hanging fruits and go from there.

(Remote) Service in times of Covid-19

Tue, 31 Mar 2020 10:59:53 GMT

(Remote) Service in times of Covid-19

Service providers are going through a difficult period now that the SARS-2 Corona Virus spreads the earth, wreaking devastating havoc. Never before was remote Service so important. Remote service providers around the world are bracing for a tremendous increase in demand: Customers will use the internet to order goods & services as much as they can, staying away from physical human interaction. How does this affect the manufacturing industry? How can you (the manufacturer) make the best of the situation? A few thoughts.

Impact on Service in the manufacturing industry

Despite lots of automation, the Service departments in the make industry are run by people, our most valuable resource. Think about Service Planners, Technical Support Engineers and Field Service Engineers who maintain & repair equipment out in the field and assist users with their issues via telephone, e-mail, chat, and VR equipment.

Currently, all those people are very limited in their freedom to act due to the world-wide effort to control the virus. They are infected, have sick relatives they need to care for, or are not allowed to travel (in some countries not even out of their homes). The domino effect has turned the stock market into the red sea, which in turn affects the ability of companies to finance themselves and continue with various initiatives and will have more social and economical impact than any other event in the past 50 years.

Next on, we may expect rigorous changes where manufacturing companies swiftly adjust to the new reality and shift field work to remote service. Governments will want to ensure that crucial machinery (e.g. in the medical sector, food industry, and power-supply, utilities) continues to run properly and new regulations and legislation may be expected. If you are in manufacturing, now is the time to act!

How can you deal with the situation?

First task on your to-do list (besides ensuring the safety of your workforce obviously) is to find out where you stand with your organization. How mature is your Customer Support Center and your E-commerce process / system? How quickly can you fit your Installed Base (equipment out in the field) to be ready for full remote service and automated parts ordering? Can you quickly enable field service engineers to handle remote service jobs? What are the costs and benefits? Also, re-evaluate where your competitors stand because the ones that are a little ahead in the game might just be the ones to survive and become market leaders. Secondly, define a short-term and long-term plan. On the short term (next 1 - 3 weeks) focus on your people and their health so they can keep the business running. On the longer term (next 2 -12 months) you should plan to totally transform to a fully automated remote service organisation.

How can you scale up your Remote Service?

To scale up remote service at the expense of onsite service, your equipment, organizational set-up (infrastructure) and technological processes need to be ready for it. Pick the low-hanging fruits first. Let's be honest - we cannot transform the complete global service organization overnight. But we can define the steps, prioritize them, and start improving. An easy first step could be to extend your internet connections and expand authorizations and licenses so people can work from home. Perhaps your customers want to help you to install those remote connection devices if you sent them. Doing the right things, in the right order, at reasonable speed is the essence here.

As a concluding remark: There is always opportunity in chaos. It is up to you to keep calm and make the best of the situation. If you need any help defining your key strategy, feel free to reach out!

Service should be the backbone of your manufacturing business!

Sat, 06 Apr 2019 11:16:16 GMT

In the Manufacturing Industry, Service is King; in fact, Service is the backbone of the manufacturing organization, adding value to the bottom line through high margins on spare parts, service products and contracts. If it isn't, something is wrong and you need to fix it. Let´s start with explaining why Service should be the backbone of your manufacturing business.

Customer Relationship

First reason is customer relationship: While your Sales Organization initiates the business relationship with a customer only once (closing the deal might take 12-16 months), your Service Organization will continue to grow and foster that relationship after the deal was sealed, for many years to come. If your customer spent 1 million EUR to buy your equipment initially, it is likely that over the next 10-15 years (depending on equipment lifetime) this customer will spend at least 1 million EUR more on maintenance, spare parts, consultancy/training, and break/fix services to keep it running optimally. The cost of sales of selling the Service Products is much lower than the cost of selling equipment initially. In particular if the customer has bought a Service Agreement where they pay a fixed amount for parts and services.

Margin

Second reason is margin: The average margin on sales of OEM spare parts, according to bench-mark data from McKinsey, is around 25%, while the margin on the initial sale of equipment is much lower (around 10%). So for every euro invoiced by Service, around 50 euro cent adds to the profit. There is a caveat here - this only works if your customers don't buy pirate parts online, or at the hardware store on the corner. It is recommended to offer parts in optimized (modularized) packages, preferably also via a Service Agreement so you can plan ahead in time on manufacturing & delivery.

Economic Cycle

Third reason is economic cycle: In times of economic upswing, investments in new equipment are high because borrowing money is relatively easy and cheap.This is very good for Service organizations in the manufacturing industry, as they typically source installations of new equipment in factories. In times of economic recession, businesses hold back on major investments, such as buying new equipment. They rather spend money on repairs and maintenance (Service hours and Spare Parts) to get the best performance out of their initial investment. This is also good for the Service organization for the obvious reasons.

Conclusion

Concluding, whatever the economic situation, there is a steady demand for Service and Spare Parts. If your Service Organization has the correct set-up of processes, people, and systems it will be the backbone of your business, adding considerable profits to the bottom line. If not, there are several actions you can take to fine-tune the above mentioned variables.

How can you link your business with IT and vice versa?

Thu, 20 Dec 2018 12:35:19 GMT

Have you ever wondered how large (multinational) organizations ensure that their most important business initiatives are supported by the correct IT solutions? How do they choose the right priorities and sequence of IT projects if there are dozens of topics on the list? Since you read this article, your business is probably already well organized but you want to optimize the cooperation between IT and the business, am I right? I expect you have great specialists, clever Business Process Owners and busy managers that make sure all the projects on your road map are professionally covered. As well, you presumably have an IT department that makes sure all IT maintenance and governance are in fairly good shape.

However, how do you convert the most important business requirements towards IT into successful solutions that benefit colleagues, customers and the so-called bottom line? This is where many companies struggle, especially when there are many business units that all have their own processes and systems.

Here are five handy pointers that can help you to link your IT & Business needs effectively and efficiently.

1) Adjust your Organizational Structure

Consider establishing a dedicated department where all global processes are maintained with correct master data definitions. When that is in place, you can start routing all business initiatives with IT components to pass through it via e.g. a global initiative list, along with descriptions, definitions, a business case, KPIs and a scored priority. When done, you’re all set up for the next step: The Linking Pin.

2) Install the ‘Linking Pin’

The next step is appointing one or more IT Business Partners, who will function as ´linking pin´ between your functional domains and your IT department. Some companies make do with only a few business partners while others have a need for many. These key people typically work in the Business Services department or in the IT organization – whatever works best for you.

The IT Business Partner(s) will take care of one or more functional domain(s). They know the business- and IT stakeholders in that area, the business processes, the applications that support these processes, issues and the improvement areas. He or she is the go-to person for people on both sides, building the bridge between Business and IT, and then crossing that bridge every day back and forth! A known pitfall is to have a business partner with too many different functional domains and hence too many stakeholders and initiatives to manage. So beware of that. Most important benefits of having dedicated business partners visualize in strong communications, alignment and agreement.

3) Establish Key User Groups and Decision Boards

Your business partners will make sure that on the business side there are Key User Groups consisting of people that actually 'push the buttons´. Key users are one of your most valuable assets when it comes to defining business requirements, execute user acceptance tests, drive implementation and training of colleagues on new functionality or processes. Each functional domain should have a decision board (DB), consisting of a few managers only that can decide which initiatives get highest priority and are therefore processed into actual IT projects; and which ones will not be worked on. The business partners should ensure that the decision boards meet regularly to review and score the initiatives that made it to the priority list. The most important benefit of the KUG and DB for your organization is that only the most important initiatives (those that are in line with mission, vision, strategy; have a positive business case; matter most to users and customers) will be worked on. A known pitfall in many companies is that business people over shouting others consume most of the available (IT) resources for system changes or enhancements that do not necessarily benefit the company as a whole.

4) Organize Portfolio Management

When all of the ideas for projects, new functionality and changes to current systems have gone through the IT business partners you end up with a reliable project list that all stakeholders agreed upon with regard to content, timeline, costs, benefits and deliverables. Imagine how little discussion you will have throughout the company when all bases are covered! Your portfolio manager will only recognize projects and changes that come in via the defined channel and disregard anything else.

5) Implement effective Project Management

With your business processes managed and the business partners in place, it is now time to ensure that the prioritized list of initiatives needing IT input is actionable and that functionality is delivered according to requirements. Agile Scrum teams can do a great job here, working with resource- & project managers. Extra tip: Prince2 or similar is a great method for project management of IT projects as a whole. Good luck!