Configure Price Quote in QAD. Srikanth Srinivasan

Transcription

1 Configure Price Quote in QAD Srikanth Srinivasan

2 Thirdware Overview Employees 20 Years Of Excellence Our Infrastructure Partners 2 Delivery Centers 6 Global Locations 20% owned by Ford Technology 300+ Customers Project Executed in 40+ Countries NEO, Brazil SIT, Mexico Geo Partners Carutris, France KontextE, Germany 85% Automotive 1

3 Our Journey Technology: Enterprise Apps. Vertical: Manufacturing-Auto Geography: USA Outcome Based Services Delivery Model Services Automation and Innovation Digital and Products/Solutions Focus Services Automation & Digital Services to Solutions Focus ExSights Product Start-up Initiated BI & Analytics - Expand Beyond EPM ISO 9K, 20K & 27K Certifications Ford & Pfizer ODC Services to Solutions US Expansion - Mid West /East Coast Focus Oracle and SAP Partnerships Technology Expansion in Strategic Accounts BI/Analytics - Impetus US Geography Expansion & BI/Analytics Focus Expand Technology ( Multiple ERPs, EPM/BI, Java,.Net) Ford Strategic Investment (20% Stake) Strategic Client Focus - Ford, Pfizer Delivery Expansion - Chennai Delivery Operations Technology Expansion & Strategic Client Focus ERP Implementations Large MNCs and Indian Conglomerates Manufacturing (Automotive) Focus India/APAC Focus ERP Wave 2

4 Configure Price - Quote Configure Price Quote Make Product and Component configuration Cost, List Price, Discounts Sales Quote Management Order Management, Planning and Manufacturing 3

5 Pricing engines and quoting systems help salespeople ensure that they arrive at suitable pricing for specific product mixes or bundles, and that details concerning initial estimates, confidence quotes and final quotes are represented accurately. Price analytics and cost estimation functionality help sellers evaluate different scenarios when structuring deals, and help protect deal profitability. However, pricing functionality is mainly limited to baseline price execution requirements that is, managing pricing conditions, price recommendation while price analytics and optimization capabilities for historical waterfall analyses and making forecasts are largely absent, but available through price optimization tools (see Figure 1). Gartner Study : CPQ Suite of Applications By 2015, comprehensive, integrated automation of CPQ processes will help companies grow sales by 10% more than their current growth rate. Figure 1. Why CPQ? Vision: Increase Sales Vision: Improve Margins Better integrity and accuracy Dynamic opportunity pricing Reduce sales errors Improve margins Increase average deal size Improve win rates Configuration Pricing Contract Quote Vision: Improve Satisfaction Vision: Improve Efficiency Improve retention Reduce lead-to-order time Improve compliance Improve responsiveness Risk management Improve documentation Sales Configurators enables sales team to identify product variations quicker and efficiently. This enablement facilitates qualification and assessment of opportunities easier. Reduces cycle time in responding to the prospects. Pricing engines and quoting systems help salespeople ensure that they arrive at suitable pricing for specific product mixes or bundles Price analytics and cost estimation functionality help sellers evaluate different scenarios when structuring deals, and help protect deal profitability. However, pricing functionality is mainly limited to baseline price execution requirements that is, managing pricing conditions, price recommendation while price analytics and optimization capabilities for historical waterfall analysis and making forecasts are largely absent, but available through price optimization tools Source: Gartner (July 2012) Gartner Gartner CPQ Foundational Research 2014 Leading companies realize that the sales experience is what creates customer preference. They are looking for a technology that can automate the entire lead-to-order or cash process. CPQ tools have moved beyond tactical internal sales-focused configuration solutions for 4

6 Configure Price - Quote Configure Price Quote Make Product and Component configuration Cost, List Price, Discounts Sales Quote Management Order Management, Planning and Manufacturing Rule-based Best Pricing Sales Quote Sales Order Configurator MRP MSW/PSW Work Order / Repetitive 5

7 Configured Product Vs Configurator Standard Features (Configured Products) Advanced (Configurator) Configuration in Sales Quotes Sales Orders Sales Quotes Sales Orders Standalone Configuration of SO BOM Standard Routing only BOM / Product Structure Routings Item Code Sales Quote / Sales Order Rules-based No (guided selling) Configuration Types ATO, PTO/Kits Assembly Simple No pre-assembly Work Orders Final Assembly (FAS) backflush Pricing Component-based Yes ATO, PTO/Kits, CTO Simple to Complex Pre-assembly possible Standard (MRP) Component-based, option-based or any combination 6

8 QAD Configurator Key Features Embeds product knowledge into configuration model vs. tribal knowledge Presents user with a plain English questionnaire to define the desire configuration Enforces configuration rules Identifies existing or new configurations Automatically builds master data to eliminate Engineering overhead Items, BOM, Routings, etc. 7

9 QAD Configurator Creates Configurable Item A configurable item is the parent item for a particular generic product structure It is usually not an item that can be manufactured, held in inventory or sold It is an identifier for the complete list of component items that can be configured in a product For example, Instrument Clusters, Pressure Seal Valves, Wheel Chair, Wheel etc. Variant Item 1 A variant item is a configured end product created from a configurable item As opposed to a configurable item, which is virtual and non-buildable, a variant item can be ordered and manufactured A configurable product structure consists of all possible components and subassemblies that can be used to manufacture or assemble any variant of the product. A configurable routing consists of all possible manufacturing operations that can be performed to produce any variant of the product. Configurable Structure Configurable Routing Variant Item 2 Configurable Structure Configurable Routing 8

10 Configurator determines Configurations by Sales Configuration is the process of Defining the Variables and Features that represent configurable product characteristics Presenting Features as questions in the guided sales process (Questionnaire) Setting up Sales Configuration Rules to ensure data collected from the Questionnaire is valid Variables are characteristics of products that can have a range of different values. Variable Options are possible values for Variables. Features are Variables that have been linked to a Configurable Item. Feature Options are possible values for Features Instrument Cluster : ZYZ High Power Instrument Panel LED 001 Variable Variable Options Features Options Available Gauge LED Lights Whites Cool 6500K Whites Cool 6500K Included Whites Natural 4000K Whites Natural 4000K Included Whites Warm 3200K Whites Warm 3200K Included Blue Blue Excluded Green Green Included Amber Amber Excluded UV (Blacklight) Added 9

11 Configuration Process Define Variables & Options Link Variables & options as features & options related to a configurable item Sequence the features Add rules (IF THEN ELSE) OR ASSIGN Identify the features that form unique variant and create Configuration Key Variant Item Number Rule to define Item Number Variant Item Data Rule to assign value to specific Item Data field like Desc., Item Type, Group etc. General & Variance product structure rule selects product structure and components for the BOM. Variant Routing rule selects routing and operations applicable 10

12 Configuration Process Configurable Item Sales Configuration Rules Questionnaire Features (and Options) Answer Questions QAD ERP Data Item-Site Data Product Structure Routing Create Variant Product Configuration Rules Variant ERP Data Variant Item Item-Site Data Product Structure Routing 11

13 Price Feature Feature Option 1 Pricing Part P1 Feature Option 2 Pricing Part P2 The QAD pricing engine supplies to Configurator the best net price and the best list price for the Pricing Part. By adding these prices for all Pricing Parts, the best net price and the best list price of the Variant Item can be calculated. Price List or Item Master Price Price List or Item Master Price 12

14 Benefits and Learnings Request for Quote Enter selections in the Configurator Configurator creates configured Part, BOM & Routing QAD builds Quote & its sent to customer Win the Quote? Yes Convert Sales Quote to Order No Benefits v Every quote is configured, priced & costed automatically to allow comparisons & Best Solution. v Order entry is simply the up lift of quote to sales order at touch of a button. v Pricing controlled via QAD Price list. v Increased standardisation of products allowing greater operational efficiency. v Eliminate manual data entry. Learnings End v Variables and Features are defined by Engineering not by Sales or Manufacturing. v Simplify Questionnaire for the End User. v Configurator Support Pricing but not pricing tool. Avoid pricing for complex configurations. 13

15 THANK YOU