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Order Entry Quality Improvement
Order Entry Efficiency Improvement
Reduction Pre-entry Quotation Reviews
ABOUT THE CUSTOMER
Specializing in custom cabinets and countertop design, including installation of those products, The Legacy Cabinet Company ('TLCC') is a regional distributor operation in both new residential and commercial construction, as well as custom remodeling projects. TLCC's headquarters are in Niceville, Florida with fifteen additional locations across the southeastern, US.
Providing quotes to customers for highly customizable products can be very challenging. An application must support variable product attributes that are selectable, limit subsequent selections based on hierarchical relationships, ensure accurate item level pricing based on these selections, and ensure the resulting item number (SKU) is 100% accurate for procuring the products, calculating taxes, managing fuel sur-charges and installation costs. The application must also interface with SAP's Business One ERP system.
TLCC initially developed an Excel based template to support their Configure-Price-Quote needs. Although the spreadsheet worked reasonably well for providing a quote to customers it was fraught with other challenges. Version management of the Excel template proved to be very challenging, incorrect SKU's were common resulting in dirty data created in SAP Business One, and pricing was generally close but seldom 100% correct.
Additionally, every sales order created in SAP Business One from the spreadsheets had to be reviewed by the accounting department to correct pricing errors and add additional information. The manual processes consumed approximately 40 hours per week of non-value-added manpower.
The Excel based solution was not scalable. It was only being used by a single location and could not be rolled out company wide. There was no visibility or access into the CPQ process as a whole. The current design did not ensure accuracy, repeatability, and could not support the business growth rate of TLCC.
'We are utilizing our vendors item master files within the CPQ application which virtually eliminates the chance for order entry errors by our sales force, leading to less touches and increased turns'
Dave Shinn, Chief Operations Officer, The Legacy Cabinet Company
APPROACH AND DISCOVERY
TLCC needed a software platform that would solve numerous application and business process improvement opportunities. The technology needed to have business rules, workflow, and reporting and dashboarding, and the ability to interface with multiple systems for data synthetization. The software also needed to be a rapid delivery product that did not include programming skills for design. TLCC ultimately selected Configurable Management's (CM) Decisions for SAP Solutions™ BPM software to design a best of breed Configure-Price-Quote application to replace the Excel template. This state-of-the-art, web-based solution ensures accuracy, consistency, visibility, and scalability. Leveraging Decisions for SAP Solutions™ TLCC now has a web delivered application that can be accessed by their sales team and executive management via any browser and platform (PC, tablet, smart phone) and can quickly create a customer quote with 100% SKU and pricing accuracy. Upon notification of being awarded the business, the quote is automatically sent to SAP Business One and a sales order is created. Subsequently, Business One creates a purchase order(s) for the respective products and vendors.
RESULT & IMPACT
The new CPQ application powered by Decisions for SAP Solutions™ has reduced the keystrokes required by the sales team to create a new quote, streamlined communication with the customers, eliminated the manual processes and reviews, improved data quality and integrity with 100% accuracy for SKUS's, pricing, and taxes.
The application ensures process consistency, provides visibility (including Key Performance Indicator measurements), is utilized all fifteen company locations, and will support exponential business growth. The design, testing, and implementation was completed within a few months with a single CM consultant. The ease of use of the application resulted in it being readily accepted by the sales team making change management a minimal component of the project. It is estimated the project will have full ROI in eighteen-months based on labor savings alone.
'The increased visibility and access to our sales information is allowing us to make quicker business decisions with reliable data.Our sales force has embraced the ease of use and ability to access their information.'
Charlie Agnew, Chief Executive Officer, The Legacy Cabinet Company
Based on the success of the CPQ process TLCC is expanding the use case into additional order types (i.eQuotes, Service Orders). Configurable Management will simply enhance the CPQ design powered by Decisions for SAP Solutions™ to include additional order processing. The project is estimated to take six to eight weeks including design, testing, and implementation. This investment is estimated to result in a 40-day ROI after implementation.
Download the Configure-Price-Quote Solution Case Study