A highly competitive market meeting massive engineering and development efforts - Sounds like the perfect recipe for tight margins in a high-pressure business environment. How can companies in the Manufacturing Services and Precision Engineering industry cope? And even more: How can they fathom agility and efficiency to unlock growth potential?
We spoke to our customer, a leading provider for high precision parts that are used for automotive, communication, household appliances, automation, medicals and electrical circuit control systems. Their goal is to provide the highest quality volume-appropriate production yields, all while maintaining maximum cost-efficiency.
Small Parts, Big Engineering Efforts
With the nature of this business involving massive engineering and development efforts, and difficulties stemming from multiple plants, our customer was facing a number of challenges.
Read all about our customer's challenges in our success story
"Interplex transforms their sales with In Mind Cloud"
Disparate RFQ procedures, a high error-rate for project costing together with unsatisfying cycle times and missing transparency required for accurate forecasting were just some of the issues that led our customer to rethink their sales processes:
The prospect of being able to identify and pursue initiatives that will deliver competitive advantage in the future was a pivotal argument for our customer.
“Previously it required a lot of templates, diagrams and spreadsheets, combined with a high manpower effort to consolidate details for any kind of sales reporting and forecasting. But in our industry, accurate on-the-spot reports are vital to make fast and informed decisions,” stated our customer's Project Manager.
The Sales Transformation Journey
With increasing global competition and the strategic goal to become a leading multi-technological solutions provider, our customer decided to work with us on transforming their sales. Another motivator to embark on this journey was to ensure higher satisfaction rates of their long-term customers. With typically tight margins in this industry, an exceptional customer experience is key to winning over competition.
The solution for our customer included the 'Manufacturing X' modules best suiting their needs, which were: Sales Simplification, Sales Optimization and Engineering Sales with Configure Price Quote (CPQ) functionality, all fully integrated into their backend, SAP ERP.
Functions and features in focus were:
- Fast and unified costing for specialised products
- Manufacturing simulations, global cost control and collaboration effectiveness
- Engineering features empowering a speedy time-to-market at a lowered cost of sales
- Sales management and analytics for fast and informed business decisions and prioritisation
The Results: True Mass Customisation For Agile Business Growth
We established a single source of truth for for our customer’s most valuable engineering and sales data to sustain their goal of providing true mass customisation.
How does that look like in detail?
Some of the most visible results were a lean supply chain with a smooth data flow between factory, sales and customer.
“The accuracy of the quote for us is a critical factor in our business success. For example, the cost calculation of stamping and molding tools for production also includes wear evaluations and amortisation rates which shows the complexity of our profitability targets," states the Quotation Manager of our customer.
Digitising and automating a multitude of crucial pre-project tasks, such as technical assessments from raw material calculations, to production process analysis are the key to accuracy and ultimately profitability in precision engineering.
The support of gross profit calculations - from as focused as costs per item, to entire project win-loss and profit-margin analytics - enable the company to see if a project is profitable and which features have more potential than other.
Furthermore, making the vast amount of data available to forecast customer movements and buying behaviour is a huge competitive advantage.
If you want to read the complete story of how In Mind Cloud's solution helped shape the future of our customer in the Precision Engineering industry, download it now!