palfinger

PALFINGER's
Digital Commerce Advancements

Elevating the customer value and becoming an integrated solution provider.
Faster sales
80%

adoption rate

E-Commerce Features
85%

customer satisfaction

200%

increase in user accounts

    Complexities

    Decoding the Multi-Level Distribution Challenge

    Managing the complexities of global expansion and diverse business models is no small task but for PALFINGER, the pioneer in lifting solutions, it’s a reality. Operating from its base in Bergheim, Austria, PALFINGER oversees operations across 30 manufacturing sites worldwide. Each region operates under its unique business models shaped by product life cycles and localized regulations.

    As PALFINGER continues its path towards international growth, it is adapting its organizational structures to match the evolving landscape. With a vast network of around 5,000 sales and service outlets worldwide, PALFINGER provides tailored support in more than 130 countries, navigating through several complexities.

     

    Let’s dig into the layers of PALFINGER channel and product intricacies, shedding light on the challenges it faces in the dynamic markets it serves.

    Channel Complexity

    Multi-level Distribution System

    PALFINGER employs a multi-level distribution system involving distributors, service partners, and end customers. Managing the flow of parts and equipment through these layers while ensuring timely delivery and transparency presents a significant logistical challenge.

    Pricing Dynamics

    Maintaining consistency in pricing across various distribution channels, including recommended retail prices (RRP) and distributor discounts, while accommodating regional variations is a complex task. The integration of SAP for internal price calculations further adds to this intricacy.

    User Management

    Seamless integration with PALDESK, PALFINGER‘s internal system, is crucial for assigning customer roles and managing user access across the distribution network. Ensuring clear identification and authorization for each user adds complexity to the user management process.

    Product Complexity

    Extensive SKU Range

    PALFINGER’s e-commerce platform boasts an extensive catalog of around 100,000 SKUs, with 60,000 available in the web store. Managing such a vast array of products, particularly spare parts related to loader cranes, demands robust organization and navigation systems to aid customers in finding the right products efficiently.

    Technical Specifications and Drawings

    Customers often require detailed technical specifications and drawings, such as exploded views, for products like loader cranes. While these features are not directly presented on the e-commerce platform, they are accessible through PALDESK. Customers can utilize PALDESK to access detailed technical information and then seamlessly transition to the e-commerce platform for their purchasing needs.

    The challenge

    Putting the Customer Needs First

    In 2019, PALFINGER found themselves at a turning point, spurred by a growing market demand for an upgraded approach to parts identification. Their original spare parts information system was lacking the punch of real-time data and the depth of detailed product information. In order to keep providing top-notch customer service, PALFINGER was committed to closing this gap. The challenge was hefty—how to weave their complex distribution network into a user-friendly e-commerce experience without losing the essence of efficiency and reliability.

    Real-time data provision became the heart of the matter. PALFINGER’s network, spanning dealers and distributors, plays a crucial role in delivering cranes to contractors embarking on significant projects. In such high-stake situations, accuracy and timeliness in information are imperative. Any deviation or delay in data could cascade into project delays, pushing costs unexpectedly high.

    Therefore, PALFINGER’s push to ensure the flow of precise real-time, information was more than a step towards modernization—it was an essential strategy to keep projects on track and costs in check. This move supported their position as the market leader, demonstrating an understanding of the critical nature of timely and reliable information in supporting their customers’ success. It balanced professional insight with the practical needs of their client base, underlining the importance of staying ahead in a digitally evolving landscape.

    Additionally, PALFINGER prioritized enhancing user and business partner management in PALDESK, recognizing its critical role in accurate user identification and permissions allocation. It was essential for them to have a system that could swiftly recognize user roles and permissions upon entry into PALDESK.

    “As market demands evolved, we faced the challenge of displaying our multi-level distribution network effectively in our e-commerce solution. We were intensely focused on refining user and business partner management, recognizing it as the backbone of our user identification process.”

    Palfinger-logo-sana-blue Peter Jäger, Head of Project & Process Management at PALFINGER

    The solution

    Implementing Sana Commerce for seamless Commerce and Partner Management

    PALFINGER’s Vision & Strategy 2030 is based on two strategic pillars, “Go for Solutions” and “Go Digital.” The former aims at PALFINGER offering integrated complete solutions, while the latter focuses on practically leveraging the potential of digitalization. Recognizing the pivotal role of digital commerce in achieving this vision, they opted for Sana Commerce — a solution perfectly aligned with their objectives while effectively addressing their complex challenges.

    This strategic move towards digital commerce wasn’t just about upgrading systems; it was about keeping up a high level of customer centricity. By digitally transforming their processes, PALFINGER created a digital dimension to keep being closely aligned with the needs of customers, partners, and dealers. This alignment not only sets PALFINGER apart from competitors but also enhances the value they offer, making them a preferred choice for customers.

    In pursuit of their digital transformation goals, PALFINGER outlined the following objectives:

    • Optimize parts identification processes to enhance customer service efficiency and responsiveness.
    • Develop an intuitive interface to seamlessly showcase the multi-level distribution system within the e-commerce platform, thereby fostering transparency and trust.
    • Improve user and business partner management in PALDESK to ensure smooth integration with the e-commerce platform, facilitating accurate user identification and permissions allocation.
    • Identify and implement practical features, especially within the B2B environment for distributors, thereby boosting distributor engagement and streamlining B2B transactions.
    Sana Commerce Cloud product illustration

    “The support and understanding the Sana Team provides in helping us find the right solution is not something every company can offer. Sometimes you can feel like you are just a ticket. With Sana you feel like you’re in a business partnership.”

    Palfinger-logo-sana-blue Ramböck Florentine, E-Commerce Manager at PALFINGER

    The results

    PALFINGER’s E-commerce Transformation: Driving Growth and Operational Excellence

    Since the implementation of Sana Commerce Cloud (SCC), PALFINGER’s e-commerce journey has witnessed remarkable strides in both growth and operational efficiency:

    Empowering Customers

    PALFINGER conducted an internal survey shortly after the implementation, revealing an impressive adoption rate of 80%. Moreover, an overwhelming 85% of customers acknowledged additional advantages provided by the platform. This translated into a significant reduction in customer service emails, as the necessary information was readily available on the web store, enhancing transparency and streamlining the customer experience.

    Efficiency through Automation

    Real-time pricing and discount updates facilitated by Sana Commerce Cloud streamlined PALFINGER’s spare parts ordering process, reducing manual effort, and enabling faster operations.

    Fostering Demand

    The launch of the web store resulted in a nearly tripled number of user accounts, showcasing a surge in demand for PALFINGER’s offerings.

    Facilitating Onboarding and Adoption

    PALFINGER successfully onboarded approximately 250 users and 80 distributors. Through meticulous training sessions and demonstrations, concerns regarding user experience were addressed, leading to heightened excitement and readiness among partners. Notably, the emphasis shifted from convincing users to training them on utilizing the platform effectively.

    Empowering Partnerships

    With SCC, PALFINGER’s partners can expedite the repair process within workshops, thereby increasing productivity and revenue potential. This enhanced capability positions PALFINGER to enable partners to thrive in the competitive landscape and strengthen their position in the value chain.

    “With Sana Commerce, we’ve reclaimed valuable time for our sales team to focus on higher-value tasks, while providing our partners with an intuitive spare parts ordering system. Without Sana Commerce, our market reach would be limited. It’s not just a platform; it’s our key to finding the right sales channels and informing our dealers.”

    Palfinger-logo-sana-blue Peter Jäger, Head of Project & Process Management at PALFINGER

    Highlighted feature

    Streamlined Multi-Level Distribution Management

    palfinger home page built with sana commerce cloud

    A standout feature in this process is the implementation of an automatic information ordering system tailored to their multi-level distribution model. This innovative solution addresses the complexity of managing the flow of parts and equipment through various distribution layers. By automating the ordering process, PALFINGER ensures timely delivery and enhances transparency across its global network of distributors, service partners, and end customers.

    This feature significantly reduces manual effort and streamlines operations, enabling PALFINGER to optimize efficiency and responsiveness in its supply chain. With real-time visibility into inventory levels and order status, PALFINGER can meet customer demands better and maintain high service standards. Moreover, the automated system enhances accuracy and minimizes errors, leading to improved performance and customer satisfaction.

    The implementation of this automatic information ordering system underscores PALFINGER’s commitment to leveraging technology to overcome the challenges of multi-level distribution. By embracing digital solutions tailored to their specific business needs, PALFINGER strengthens its position as a leader in the lifting solutions industry while enhancing the value proposition for its customers and partners.

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