Client Context
Our client, a global industrial supply company, wanted to understand how major MRO distributors in Asia, specifically ERIKS and Fastenal, leveraged automation and digital transformation to capture market share. As customer expectations evolved toward faster fulfillment, reduced downtime, and data-driven procurement, the client sought insight into which automation tools and service models resonated most with industrial buyers.
The study’s goal was to assess these players' competitive positioning, identify best practices in automation-enabled distribution, and determine how digital technologies were shaping MRO customer loyalty in Asia’s diverse industrial sectors.
Our Approach
We structured the project around three core research modules:
Competitor Automation Benchmarking: We analyzed ERIKS and Fastenal’s automation capabilities, including vending solutions, on-site managed inventory programs, predictive maintenance offerings, and integration with customer eProcurement systems. We examined how each distributor packaged automation tools with broader service offerings to differentiate themselves.
Customer Use Case Analysis: Through interviews with industrial procurement managers, plant maintenance supervisors, and supply chain leads, we documented how automation tools were applied in real-world scenarios. We identified which features (such as real-time inventory visibility, automated restocking, and remote equipment monitoring) delivered the greatest value in terms of reduced downtime and operational efficiency.
Market Dynamics and Adoption Drivers: We evaluated sector-specific adoption of MRO automation solutions across manufacturing, oil and gas, construction, and mining. This included assessing the influence of regional factors such as labor cost pressures, local supply chain maturity, and facility automation readiness.
Impact
Our findings delivered clear, actionable insight into the competitive automation landscape:
· Automation as a Loyalty Driver: Both ERIKS and Fastenal used automation-enabled solutions, particularly vending machines and on-site inventory programs, as tools to lock in long-term customer relationships and embed themselves into client operations.
· Digital Procurement Integration: Fastenal stood out for its seamless integration with customer eProcurement systems, enabling automated order placement, approval workflows, and usage reporting.
· Predictive and Preventive Maintenance: ERIKS differentiated itself by pairing automation with technical expertise, offering predictive maintenance insights that reduced unplanned downtime for heavy industrial clients.
· Regional Adoption Patterns: Automation adoption was highest in sectors with high downtime costs and stringent maintenance requirements, such as energy and petrochemicals. Markets with lower labor costs and less supply chain digitization showed slower uptake, creating white space opportunities.
Armed with this competitive intelligence, the client understood how automation strategies could be deployed to enhance value propositions, differentiate in a crowded market, and accelerate adoption in high-potential sectors. These insights informed the client’s regional investment priorities and guided the development of automation-focused service offerings tailored to Asian industrial customers.
