As we have moved to virtual briefings, I have increasingly been excerpting short video segments (with permission) as part of my Analyst Cam series.
This time it is Achyut Jajoo · SVP and GM, Manufacturing and Automotive presenting an update on their Manufacturing Cloud.
Unlike other industries Salesforce has presented in recent Analyst Cam episodes, the Manufacturing Cloud is not new. It was launched in 2020. Salesforce is focused on the customer facing side of manufacturing – what it calls “digitizing the front and middle office”, not operational functionality for the shop floor or product lab that many ERP vendors target.
Achyut identifies that for most manufacturing businesses, less than 10% of revenue is net-new business. Most of the business is in “run rate, long term customer agreements, or you're bidding on long term projects and programs”. Most companies were using Salesforce as a CRM for net new business. 90+% of the business was being done in Excel spreadsheets or by tapping into the ERP or other sources where long-term customer agreements are recorded.
Some of the use cases the Manufacturing Cloud focuses on – modernizing commercial operations, simplifying partner engagement and transforming service experiences. That translates to focus on functionality identified below
Achyut also identifies 4 “sub-sectors” they are focused on: a) complex equipment manufacturers, b) production parts suppliers (like automotive suppliers) whose products are inputs for other manufactured products and equipment. c) chemical manufacturers. d) distribution-oriented manufacturers that distributing their products through a channel ecosystem.
He presents on 2 customers – Swissbit (sensors and chips) and Tenneco (automotive components).
He also asked me to pass along that Salesforce is hosting a Manufacturing Summit on December 1 in Chicago. If you're interested in connecting with the team at the event, you can find the agenda and registration information here.
