configure price quote in qad - midwest user group · iso –9k, 20k & 27k certifications...
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Srikanth SrinivasanConfigure Price Quote in QAD
1
Thirdware Overview
1200+Employees
20 Years Of
Excellence
Our Infrastructure
Partners
2 Delivery Centers6 Global Locations
20% owned by Ford Technology
300+Customers
85% Automotive
Project Executed in
40+ CountriesGeo Partners
NEO, BrazilSIT, MexicoCarutris, FranceKontextE, Germany
2
Our Journey
1995 - 2000ERPImplementationsLargeMNCsandIndianConglomeratesManufacturing(Automotive)FocusIndia/APACFocus
2001 - 2005ExpandTechnology(MultipleERPs,EPM/BI,Java,.Net)FordStrategicInvestment(20%Stake)StrategicClientFocus- Ford,PfizerDeliveryExpansion- ChennaiDeliveryOperations
2006 - 2010USExpansion- MidWest/EastCoastFocusOracleandSAPPartnershipsTechnologyExpansioninStrategicAccountsBI/Analytics- Impetus
2011 - 2015ServicestoSolutionsFocusExSights– ProductStart-upInitiatedBI&Analytics- ExpandBeyondEPMISO–9K,20K&27KCertifications–Ford&PfizerODC
2016-2020Outcome BasedServicesDeliveryModelServicesAutomationandInnovationDigitalandProducts/SolutionsFocus
ERP Wave
Technology Expansion & Strategic Client Focus
US Geography Expansion& BI/Analytics Focus
Services toSolutions
Services Automation
& Digital
Technology:Enterprise Apps.
Vertical:Manufacturing-Auto
Geography:USA
3
Configure – Price - Quote
Configure Price Quote MakeProduct and Component configuration Cost, List Price, Discounts Sales Quote Management Order Management, Planning and Manufacturing
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Gartner Study : CPQ Suite of Applications
This research note is restricted to the personal use of dharm@thirdware.com.
This research note is restricted to the personal use of dharm@thirdware.com.
salespeople to substantially reduce cycle times in responding to prospects' requests. It also helps inquoting error reductions, reducing rework and identifying the appropriate product combination.
Pricing engines and quoting systems help salespeople ensure that they arrive at suitable pricing forspecific product mixes or bundles, and that details concerning initial estimates, confidence quotesand final quotes are represented accurately. Price analytics and cost estimation functionality helpsellers 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 optimizationcapabilities for historical waterfall analyses and making forecasts are largely absent, but availablethrough price optimization tools (see Figure 1).
Figure 1. Why CPQ?
Contract
Configuration
Quote
Pricing
Vision: Increase Sales• Better integrity and accuracy• Reduce sales errors• Increase average deal size
Vision: Improve Margins• Dynamic opportunity pricing• Improve margins• Improve win rates
Vision: Improve Satisfaction• Improve retention• Improve compliance• Risk management
Vision: Improve Efficiency• Reduce lead-to-order time• Improve responsiveness• Improve documentation
Source: Gartner (July 2012)
Leading companies realize that the sales experience is what creates customer preference. They arelooking 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 forsalespeople to use for configuring a product and pricing, and quoting that information to thecustomer in response to a customer request. CPQ tools are being adapted to become an entire
Gartner, Inc. | G00234291 Page 3 of 7
• 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
By 2015, comprehensive, integrated automation of CPQ processes will help companies grow sales by 10% more than their current growth rate.
© Gartner – Gartner CPQ Foundational Research 2014
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Configure – Price - Quote
Configure Price Quote MakeProduct and Component configuration Cost, List Price, Discounts Sales Quote Management Order Management, Planning and Manufacturing
Rule-basedConfigurator
Best Pricing Sales Quote Sales OrderMRP
MSW/PSWWork Order / Repetitive
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Configured Product Vs ConfiguratorStandard Features(Configured Products)
Advanced(Configurator)
Configuration in Sales QuotesSales Orders
Sales QuotesSales OrdersStandalone
Configuration of SO BOMStandard Routing only
BOM / Product StructureRoutingsItem CodeSales Quote / Sales Order
Rules-based(guided selling)
No Yes
Configuration Types ATO, PTO/Kits ATO, PTO/Kits, CTOAssembly Simple
No pre-assemblySimple to ComplexPre-assembly possible
Work Orders Final Assembly (FAS) backflush Standard (MRP)Pricing Component-based Component-based, option-based or any
combination
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Key FeaturesQAD Configurator
Embeds product knowledge into
configuration model vs. “tribal knowledge”
1Presents user with a
plain English questionnaire to define the desire
configuration
2Enforces configuration
rules
3Identifies existing or new
configurations
4Automatically builds
master data to eliminate Engineering overhead -Items, BOM, Routings,
etc.
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QAD Configurator Creates …
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Configurable Item
Variant Item 1• Configurable
Structure• Configurable Routing
Variant Item 2• Configurable
Structure• Configurable Routing
• 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.
• 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.
Configurator determines Configurations by …
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• 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 001Variable Variable Options Features Options AvailableGauge 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
Configuration Process
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Define Variables & Options
Link Variables & options as features & options related to a configurable item
Sequence the featuresAdd 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 selectsproduct structure and components for the BOM.
Variant Routing rule selects routing and operations applicable
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Configuration Process
Questionnaire
Answer Questions
Features(and Options)
Sales ConfigurationRules
Configurable Item
Product ConfigurationRules
QAD ERP DataItem-Site DataProduct StructureRouting
Variant ERP DataVariant ItemItem-Site DataProduct StructureRouting
Create Variant
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Price
Feature
Feature Option 1Pricing Part P1
Feature Option 2Pricing Part P2
Price List orItem Master
Price
Price List orItem Master
Price
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.
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Benefits and LearningsRequest for
QuoteEnter selections in the Configurator
Configurator creates configured Part, BOM
& Routing
Win the Quote?
Yes
End
Convert Sales Quote to Order
No
QAD builds Quote & its
sent to customer
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.
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.
Benefits Learnings
THANK YOU
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