Information Technology can indeed help companies to stand out in handling the information in sales related processes. First of all, an industry-specific order entry system helps sales teams to find existing designs and their availability in stock, based on the customer requirements. Systems offers an advanced search possibility to find designs using characteristics such as: application, number of elements, cross section area, etc.
In addition, the sales team will be able to capture the details of the customer requirements in the system. In the wire & cable industry, these details typically include: the length break-down, the length tolerance, the drum type, length and clamp marking (e.g. marine cables). This information will travel downstream in the supply chain so that the customer gets the products delivered in time and in the exact conditions as agreed.
An important challenge in the sales of many cable types is the risk management of the price volatility of the conducting materials such as copper and aluminum. IT can be used to execute various strategies of risk management. Amongst others, these strategies include automatic price adjustments on sales lines, hedging strategies, periodic automatic settlements with customers and vendors or mass updates of price lists, all based on actual copper prices.
A US based cable manufacturer who uses InnoVites Cable ERP to manage their customer pricing saves 2 FTE by automating their pricing strategies with their industry-specific ERP system.
IT helps companies to deal with information about customer requirements more effectively and at the same time reduce the risk of commodity price volatility. This will result in a better customer experience and ultimately better margins for the company.
In our next blog we will discuss how IT can contribute to Planning.
10 December 2015
Making IT work in the wire & cable industry: Sales and InvoicingWritten by Albert Groothedde
In our previous blog we discussed the added value IT in the wire & cable industry specifically for Product Engineering and Quoting. We will now explore how to improve business performance by investing in IT for Sales and Invoicing.
The main priority in sales is to respond to customer needs fast and accurately. In today’s world the information associated to customer requirements are increasing both in volume and volatility. A successful company is able to deal with this information effectively.