Motion Industries Digital Transformation Strategy

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Motion Industries Digital Transformation Strategy

Key Takeaways

  • Motion Industries generated $6.33 billion in sales in 2021.
  • Motion Industries' mission statement reads: "To meet or exceed our customers needs in a timely manner by providing quality products and continuously improving our internal operations and the services we provide."
  • Motion Industries existing marketing tech stack (martech) include Facebook, Twitter, Branch Metrics, Adobe Marketing Cloud, Campaign Monitor, Google Map, and IBM Z Series Mainframe.
  • Stiff competition and customers' demand for faster delivery are identified as some corporate challenges faced by Motion.

Introduction

The research brief first provides the company analysis of Motion Industries, including their products, annual revenues, values, missions, existing martech, etc., and then two corporate challenges faced by the company. Although the information was available on Motion's strategic initiatives related to digital technology, it was limited. We prioritized strategic initiatives related to digital technology before broadening the search to highlight any other strategic efforts. Below are our findings, and further details about our logic can be found in the research strategy section of this report.

Overview

  • Motion Industries distributes industrial parts and conveyance solutions from the MRO (Maintenance, Repair, and Operating) and OEM (Original Equipment Manufacturer) markets across North America and Mi Asia Pac in Australasia.
  • The industrial parts group classifies its products under 19 categories, including Abrasives, Adhesives, Bearings, Chemicals, Cutting Tools, Electrical, Facility Maintenance, Hand & Power Tools, Hose & Fittings, Hydraulics, Janitorial, Linear Motion, Material Handling, Mechanical Power Transmission, Pneumatics, Process Pumps, Raw Materials, Safety, and Seals, Gaskets & Accessories. Customers can instantly access more than 10.4 million unique MRO/OEM parts.
  • The company has been operating since 1946 and doesn't seem to require financial backing from external investors, having acquired 22 organizations in its history, with the latest acquisition of $1.3 billion in 2021. However, Motion Industries has been a subsidiary of Genuine Parts Company (NYSE: GPC) since 1976.
  • According to the latest report regarding its annual revenue, the company generated $6.33 billion in sales in 2021.

Corporate Value and Missions

  • Motion Industries' mission statement reads: "To meet or exceed our customers needs in a timely manner by providing quality products and continuously improving our internal operations and the services we provide."

Strategic Initiatives

  • After thoroughly searching through its official website, press releases, and reliable media sites, Motion Industries seems to have provided limited information to the public about its strategic initiatives related to digital technology.
  • In February 2022, Motion Industries announced the launch of their new website, Motion Ai, to equip users with the information to understand their technical applications, i.e., automation, robotics, and motion control, and the list of solutions to meet their specific needs. Customers also have access to a team of experts to query regarding a product or system design.
  • In addition, Motion Industries has future plans of launching a contemporary eCommerce platform.
  • The company recently rebranded from Motion Industries to simply 'Motion', a move aimed at solidifying the company's structure and presence in the marketplace.

Quotes On Digital Strategy

  • Aurelio Banda, Motion's Senior VP, Automation Intelligence, said this about the new website and their future digital strategy: "The new Motion Ai website provides more innovative resources and enhanced information for users who want to learn anything and everything automation, robotics, and motion control. As an automation industry leader, Motion Ai delivers consistent, relevant news and trends via this new website, while allowing for rapid-response functionality. We also look forward to launching a contemporary eCommerce platform in the near future."
  • The President of Motion, Randy Breaux, said, "Blending the acquired technical brands under Motion Ai has been a huge success, and the resulting synergies are a major benefit for our customers. Now, this new website makes assistance and solutions more accessible than ever for users who want to optimize automation and IIoT in their organizations."

Existing Marketing Tech Stack

Additional Facts

Corporate Challenges Faced

A Highly Competitive & Fragmented Industry
  • To comprehend the business challenges impacting Motion Industries, consider the stiff competition in the OEM/MRO parts market. As a result, a company in this industry must continue being innovative.
  • The competition is not only from other vendors or part suppliers but from original equipment manufacturers (OEMs) as well. This challenge affects OEM parts distributors in all industries as "increasingly efficient logistics systems allow manufacturers to sell more products directly to end users, bypassing distributors."
  • According to Motion's financial report, "We face substantial competition in the industries in which we do business." The company pursues innovation to wade off the stiff competition by offering superior customer and value-added services. At times, the company is forced to reduce prices below its desired pricing level or increase ad spending.
Customers Demanding Faster Delivery
  • Motion's nature of business requires that adequate inventories are maintained, and customers have instant access to MRO/OEM parts through its vast distribution network.
  • However, the availability of these parts strictly depends on the original equipment manufacturers' (OEMs) efforts to avail them to the distributors in time. This challenge is one of the common challenges affecting businesses in this industry.
  • As a result, Motion aims to fill orders immediately from existing stock and "deliveries made within 24 hours of order receipt."

Research Strategy

For this research on "Motion Industries Digital Transformation Strategy", we leveraged the most reputable sources of information that were available in the public domain, including the company's official website, press releases, financial reports, third-party business intelligence platforms such as BuiltWith, Sintel, Crunchbase, etc. We located all the requested information through the strategy. However, the data about Motion's strategic initiatives related to digital technology was limited. Hence, We prioritized strategic initiatives related to digital technology before broadening the search to highlight any other strategic efforts.

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