Manufacturer Gains Edge Over The Competition
A manufacturing company’s product was a machine that consisted of thousands of parts. No two machines were the same, so each machine had to be customized based upon the configuration and needs of the customer.
When a salesperson conducted a sales meeting with a potential customer, he/she would ask the customer what attributes the machine should contain, would return to the factory and would pass the details to Engineering. The engineers would then create a drawing of the machine’s “footprint” and spend almost two weeks detailing the parts and quantities of parts that would be required to build the machine. The engineering QA team would verify the design and bill of materials.
Then, Engineering would send the bill of materials to Manufacturing to get a sense of the labor required to assemble the machine. The Manufacturing team would spend a few days estimating the labor costs.
After Manufacturing determined its estimate of labor, Manufacturing would send the bill of materials created by Engineering, attach their labor estimates for assembly and send the documents to Accounting to cost-out the machine.
After approximately a week, Accounting determined the cost of the machine. Then, Sales would mark-up the price of the machine and inform the salesperson with the selling price of the machine. The salesperson, then, contacted the client with an estimated cost.
All of this effort from the time of the initial potential customer meeting to the communication of the estimated cost to the client took almost three weeks.
The CSSC Group was assigned to expedite the process. Upon completion of the coding and testing, an application was written that executed on the salesperson’s laptop. The CSSC Group met with the President and his executive staff to demonstrate the software on the wall projector in the Boardroom.
Prior to the demonstration, an employee of the sales department created a contrived configuration and played the role of the customer. The contrived configuration was sent to Engineering, Manufacturing, Accounting and Sales to determine the final sales price.
Then a salesperson, unfamiliar with the software application, spent about 10 minutes with a representative of CSSC to learn the application.
The “client” then came into the Boardroom, sat across from the salesperson and answered questions asked by the salesperson who completed various data entry fields on his laptop. After the needs of the client was entered, the salesperson depressed the “Process” button and within a minute, a sales quote was presented plus a bill of materials for Manufacturing.
The Director of Sales had the calculated cost in a sealed envelope. When the salesperson reported the quote generated by the software of $19,765.62, the Director of Sales opened the envelope and the amount calculated by Accounting was $19,765.87. The executive team was delighted because they were happy to come in within $1,000 of the estimate.
So, the salesperson was now able to quote accurate numbers to clients in minutes rather than in weeks, which gave them an edge over the competition.