Product Engineering and Quoting the customer are about volumes and conversion rates: the success of these processes depend on the ability to process Requests For Quotation (RFQ’s) efficiently while converting a high percentage of the quotes into orders. As the win ratio in the industry typically is around 10%, it’s important to use the resources that process customer RFQ’s efficiently.
IT can certainly contribute to the success of a company in this area. Industry specific engineering and quoting software can automate the complex costing calculations and keep the designs consistent and up-to-date. This software can automatically produce a high quality data sheet, 2D or 3D drawings, quotations, etc. This results in significant savings for the company and at the same time the sales organization becomes more responsive to customer requests.
Modern workflow capabilities enable an efficient routing of the tasks throughout the organization, further reducing the turnaround times for customer RFQ’s.
The engineering software, when integrated to ERP and MES systems, will also enable the automatic and real-time distribution of product data across the company. The availability of up-to-date product information in all parts of the company is crucial to support and leverage product and process innovation and stay ahead of competition.
The largest cable manufacturer of India, Polycab, implemented CableBuilder, the leading engineering and quoting software in this industry and reported significant benefits. It enabled them to establish efficient and consistent procedures in their engineering processes. The time needed to create new designs dramatically reduced to minutes rather than hours. Mass updates of product data became an automated routine rather than a time consuming task.
By reducing costs and becoming more responsive to customer needs, IT can help improve margins in the business domain Product Engineering and Quoting.
In our next blog we will discuss how IT can contribute to Sales and Invoicing.