Price quoting solution boosts efficiency, drives sales increase
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- Deirdre Hawkins
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1 CUSTOMER SUCCESS STUDY Price quoting solution boosts efficiency, drives sales increase To grow revenue, material handling manufacturer replaces timeconsuming processes Powering Modern Commerce with Dynamic Pricing Science
2 Summary A top global manufacturer of material handling equipment wanted to simplify and accelerate its complex quoting process, improve back-office efficiency, and use those changes to drive an increase in overall sales. With win rates closely correlated to how quickly prospects received quotes, and greater sales efficiency creating cost savings, a pilot program built around PROS Smart CPQ solution provided substantial gains. Going live in early 2017, the PROS solution delivered a 58% reduction in time-to-quote, a 17% increase in sales efficiency, and is expected to deliver an estimated USD $6 million gain in profitability. The project success is now poised to roll out globally. 2 CASE STUDY: TOYOTA MATERIAL HANDLING QUINT PROJECT CASE STUDY
3 Challenge Fragmented and ad hoc sales processes were causing major inefficiencies and limiting the company s growth potential. Every local sales and marketing organization utilized its own quoting processes. Those workflows were almost entirely manual, involved hard-to-document , text and phone communications, and required multi-level approvals. In addition, extensive duplication of data entry wasted time and created multiple opportunities for human error. After an extensive evaluation of several vendors, the manufacturer chose a PROS solution pilot program that would focus on several European marketing/ It was obvious that even a small improvement in the quoting and order processes would have a dramatic effect on sales and revenue. sales units in a specific region. This European region typically produced 55,000 final quotes and as many as 25,000 orders per year. Time-tracking showed that the 650 salespeople in the pilot region spent 30% of their time generating quotes and orders and that 200 sales support personnel spent 60% of their workday on those tasks. By addressing these quoting practices, the PROS pilot program targeted a major opportunity to gain efficiencies. CASE STUDY: TOYOTA MATERIAL HANDLING QUINT PROJECT CASE STUDY 3
4 Solution The PROS Smart CPQ solution helped automate and simplify the configuration, pricing and quoting process for sales teams. This enables sales to instantly create accurate, personalized solutions for each customer while driving down back-office costs. With configuration and quoting capabilities of the PROS solution, this manufacturer of material handling equipment was able to: Build an entirely new quoting process a single process that works across all marketing/sales units. Accommodate a complex product range, including 11 product families and 249 different models along with a virtually unlimited set of options. Create a harmonized price structure and quote process that could be rolled out successfully to business units that were accustomed to more autonomy in the pricing process. PROS offered extensive experience in European markets, and the proven ability to deliver significant efficiencies. The PROS Smart CPQ toolset was deployed atop Oracle CRM to create a single customer database, enable simplified workflows, set up a single price structure, and build a highly automated quoting and order-management system. The process improvements delivered by PROS are expected to be worth greater than USD $6 million in additional profit per year. 4 CASE STUDY: TOYOTA MATERIAL HANDLING QUINT PROJECT CASE STUDY
5 With systems support and a lean process in place, we save time. And when we do the right things in the right sequence, we save time. Which enables our salespeople to meet more customers, and our back-office to do more value-added activities. Conclusion With greater process efficiency, marketing/sales units can sell more effectively, and sales support personnel can focus more on sales enablement. The gains from streamlining the sale quoting process are significant. For example, the manufacturer discovered that its existing processes required data to be input into siloed systems between five and 10 times for every quote/order--- with the opportunity to generate errors with every entry. The new PROS-based quoting process required data to be entered only once. The PROS solution also reduced the time-to-quote from more than seven minutes to less than three minutes a 58% reduction multiplied by 55,000 quotes per year. Results Significant benefits delivered by the PROS Smart CPQ solution start with a 58% reduction in time-toquote for the region in the pilot program. Fewer hours spent managing quotes was the key to a 17% increase in sales efficiency an improvement that is expected to deliver USD $6 million additional profit. In addition, the PROS solution offers huge potential for further improvements, including additional gains in quoting/ordering efficiency and approvals workflow. Its single price list will also ensure price accuracy and require less maintenance. And, as marketing/sales units gain experience with the system, the company will likely realize new efficiencies. Based on the success of the European pilot program and the value it provided the manufacturer is planning to roll out the PROS price quoting solution worldwide. CASE STUDY: TOYOTA MATERIAL HANDLING QUINT PROJECT CASE STUDY 5
6 About PROS PROS Holdings, Inc. (NYSE: PRO) is a cloud software company powering the shift to modern commerce by helping companies create personalized and frictionless buying experiences for their customers. Fueled by dynamic pricing science and machine learning, PROS solutions make it possible for companies to price, configure and sell their products and services in an omnichannel environment with speed, precision and consistency. Our customers, who are leaders in their markets, benefit from decades of data science expertise infused into our industry solutions. To learn more, visit pros.com. Copyright 2017, PROS Inc. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error -free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. CASE STUDY: TOYOTA MATERIAL HANDLING QUINT PROJECT CASE STUDY
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