Configure to Order

Report
Configure to Order
Managing Complexity While Meeting
Customer Demand
Bob White – CFO Encoder Products (EPC)
Frank Feustel – Director Product Management, QAD
Configure to Order
Safe Harbor Statement
The following is intended to outline QAD’s general
product direction. It is intended for information
purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver
any material, code, functional capabilities, and
should not be relied upon in making purchasing
decisions. The development, release, and timing
of any features or functional capabilities
described for QAD’s products remains at the sole
discretion of QAD.
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Configure to Order
Agenda
• Introduction to Configurator
-
Business drivers
Manufacturing strategies
Configurator
What is new and what will come soon
• Configurator at work
-
Encoder Products Company (EPC)
Challenges and opportunities
Configurator at work at EPC
Benefits
Future outlook
Product demo
• Question and answers
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Configure to Order
Customers Demanding
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•
•
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Lower prices
Higher quality
Faster delivery
Customized products
“Mass Customization Is (Finally)
The Future Of Products”
Forrester, April 15 2011
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Configure to Order
Manufacturer’s Pressures
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•
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Standardize, reduced margins
Reduce supply chain costs
Improve order lead times
Reduce quote and order errors
Improve customer service
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Configure to Order
Manufacturing Strategies
Variety
Delivery Lead Time
Design
Purchase
Manufacture
Assemble
Ship
Engineer-to-Order (ETO)
Ship
Make-to-Order (MTO)
Delivery Lead Time
Inventory
Manufacture
Assemble
Delivery Lead Time
Manufacture
Inventory
Assemble
Ship
Configure-toOrder (CTO)
Assemble-to-Order (ATO)
Delivery Lead
Time
Manufacture
Assemble
Inventory
Ship
Make-to-Stock (MTS)
Volume
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Configure to Order
QAD Configurator

A powerful application designed to simplify
processing of configure-to-order products
- Captures engineering knowledge
- Guides through the selling process
- Automatically generates work orders and routings
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Configure to Order
Intuitive, Informative, Intelligent
• Guided sales
- Flexible questionnaire design
- Powerful price calculations
• Instant conversion of customer requirements
into manufacturing requirements
- Product configuration rules
- Seamless integration
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Configure to Order
Your Competitive Advantage
• Meet customers’ specific requirements
• Streamlined order and quotation process
- Reduced error rates
- Reduces lead time to fulfill orders
• Bridge knowledge gap
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Configure to Order
Recent Product Enhancements
•
•
•
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Forecast consumption for planning items
Configuration rebuild
User defined warning messages
Oracle database support
New browses and browse collections
And much more...
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Configure to Order
Next Generation
• Enhanced for kits and links to sales quotes/ orders
• New attribute creation rules
• Integration with enhanced best pricing
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Configure to Order
Next Generation
• Web based configured orders
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Configure to Order: Configurator at Work at EPC
Encoder Products Company (EPC)
• EPC is a leading designer and manufacturer of
premium rotary incremental and absolute encoders
used for motion feedback
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Configure to Order: Configurator at Work at EPC
EPC Facts
• Founded in 1969
• 98,000 sq. ft. manufacturing facility 10 miles
south of Sandpoint, Idaho
• QAD customer since1986
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Configure to Order: Configurator at Work at EPC
Encoders
• Encoders are highly configurable and
governed by a complex rule set
• EPC distinguishes itself from the competition
in cost, quality, delivery and value
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Configure to Order: Configurator at Work at EPC
Challenges and Opportunities
• Customer Service
- Speeding up order entry
- Shorten training time for operators
• Engineering
- Support for MTS, ATO, MTO and ETO
- Complete and accurate BOMs
- Convert lengthy catalog numbers
• Marketing
- Sales trends by encoder options
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Configure to Order: Configurator at Work at EPC
EPC Ordering Guide
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Configure to Order: Configurator at Work at EPC
Implementation Approach
• Creation of modular BOMs
• Creation of generic router
• Creation of variant item data rules for unique
catalog description
• Capturing engineering knowledge
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Configure to Order: Configurator at Work at EPC
Quantitative Benefits
• Cutting down order entry training from 6 to 1
month
• Reduction of order entry errors by over 50 %
• Satisfying customers standard delivery times
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Configure to Order: Configurator at Work at EPC
Qualitative Benefits
• Links variant items to customer item
numbers
• Auto-label creation
• Extrapolation of sales trends on
features and options
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Configure to Order: Configurator at Work at EPC
Future Outlook
• Purchasing of configured sub-assemblies
• Configuration inside QAD CRM and QAD CSS
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Configure to Order: Configurator at Work at EPC
Demo
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Configure to Order
Metrics Affected
Process
Configure complex products
based on pre-approved
engineering and sales business
rules
Benefit
Value
•Reduce errors
•Reduce selling time
•Increase market share
•Improved sales
productivity
•$000’s
Rules automatically translate
possible configurations into
actual items, product
structures and routings
•Lower costs
•5% to 25%
•Reduce errors
•$000’s
•Reduced product leadtime
•10% to 50%
Rules based generation of
variant item numbers enable
re-order of configured items
•Increase customer
satisfaction
•10% to 20%
Product personalization /
customization by semi-skilled
sales staff
•Increase market share
•50% to 90%
•5% to 10%
•10% to 50%
•5% to 10%
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Configure to Order
Next Steps
• Attend Collaboration: From Supplier to
Customer Solutions
- Thursday at 9:45
- Speaker:
• Mark Williams QAD
• Contact your account manager to arrange
a Configurator Q−Scan
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Configure to Order
Questions & Answers
Bob White
Frank Feustel
[email protected]
[email protected]
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www.qad.com
© QAD Inc
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