The document discusses the impact of Industry 4.0 on purchasing patterns within the industrial value chain, highlighting that industrial purchasers allocate 50% of their budgets online, making digital presence essential for manufacturers and distributors. It reveals increased pressure on distributors from manufacturers and e-marketplaces and emphasizes the importance of differentiation, particularly through post-sales service offerings. Additionally, it presents data on supplier spending and competitive points of differentiation across various countries.

1. 1
Industry 4.0
The digital disruption also
changes the purchasing patterns
strongly impacting the industrial
value chain

2. The Industrial purchasers are spending 50% of their budget on-line
> Going on-line is mandatory for industrial manufacturers and distributors
41%
39%
38%
40%
47%
47%
37%
49%
49%
44%
44%
60%
52%
43%
EUROPE FRANCE ITALY GERMANY UK US CHINA
What percent of industrial spend is spent via digital?
20172015 Source: IBD 2017

3. Digitization implies a New Deal for purchasing industrial products
> Distributors are now under pressure from both manufacturers and e-marketplaces
21%
21%
23%
22%
20%
24%
30%
36%
35%
29%
35%
40%
45%
35%
44%
44%
48%
44%
40%
31%
35%
Share of spend by suppliers type and country
MANUFACTURER
DISTRIBUTOR
E-MARKETPLACE
Source: IBD 2017

4. 4
As the supplier landscape shifts differentiation is vital
> Distributors and manufacturers should offer Post-Sales offers
86% 88%
96%
85%
74% 76%
99%
Europe France Italy Germany UK US China
DEMAND SIDE
Expect supplier to provide on-site post-sale service
SUPPLY SIDE
What is your top competitive point of differentiation for
all of the machines that you sell?
Source: IBD 2017Source: Industrial Machinery Manufacturing: Trends, Insights and Opportunities
45% 43%
12%
Machine
Performance
Machine Quality Post-Sales