eCommerce 4 Manufacturing

EeCommerce 4 Manufacturing (sm) Solutions

AT Agent Technologies, Inc.

Agent Technologies, Inc.

www.agenttech.com

Ben Moore

OverviewOverview What is eCommerce? eCommerce Facts & Predictions eCommerce benefits for Manufacturers Price Quoting Process Our Implementation Process Determining Your eCommerce

Readiness Questions & Answers



What is eCommerce?What is eCommerce?

Deals with using the Internet, digital communication and IT applications to enable the buying/selling process

The Gartner Group



What is eCommerce?What is eCommerce?Online Price Quote System - allowing customers to generate

price quotes online

Selling Products Online - allowing customers to configure and purchase online

eFactory (tm) - sending online customer configured orders to the plant floor



eCommerce Facts & eCommerce Facts & PredictionsPredictions

Over 80% of US companies have experimented with some form of online procurement

Nearly 40% of manufacturers provide customer order status online

Investment in e-business initiatives is on the rise driven by productivity increases and cost savings.



eCommerce BenefitseCommerce Benefits



Grow Revenues

CustomerService

Cut Costs• Internet orders normally

cost less than $1/order while phone/fax/mail orders cost more than $4/order

• Elimination of errors and duplication of effort, fewer shipment returns

• Redeployment of key personnel used in generating price quotes Customer Service

• Enhance loyalty

• Improve customer satisfaction

• Share informationSource: Gemini C4 Lab Analysis.

Grow Revenues• Open for business 24

hours/day - 7 days/week

• More Qualified Leads - leading to more sales

• Ability to cross sell

Cut Costs AT

eCommerce Benefits for eCommerce Benefits for ManufacturersManufacturers

Companies that have electronic access to their suppliers’ inventory data turn their inventory 13 times per year, versus nine for those that do not.

Companies with online order processing can turn an order over in 21 days, versus 26 days for companies that do not have such capabilities.

Companies that enable their sales force to view customer orders and product information online have between 27 percent to 38 percent fewer employees in their sales departments.

Companies that allow customers to configure their order at the point of sale ship orders in 14 days versus 29 days for companies without such a feature.

E-Commerce Trends Index by Ernst & Young and the National Association of Manufacturers



CurrentCurrentPrice Quoting ProcessPrice Quoting Process



Future Future Price Quoting ProcessPrice Quoting Process



Online Price Quote/ Online Price Quote/ Configurator benefitsConfigurator benefits



Product Configurators offer a 25% reduction in cost of sales by decreasing the number of technical sales support staff to the number of sales staff required.

Product Configurators will provide sales organizations with a 2% increase in

win rate and order size resulting in a 5.4% increase in revenues.

Product Configurators offer a 50-70% reduction in rework expenses for organizations with a 25% or greater order error rate. 25% is the industry average for made-to-order/assemble-to-order manufacturers.

Gartner Research

Our Implementation ProcessOur Implementation Process Assess Current Manufacturing/Sales Process for Product Assess Current Manufacturing e-Commerce Readiness Identify Product Components from Bill of Materials Identify Sub-Assemblies and Overall Product Hierarchy Identify Configuration Rules including Configuration Order Identify “Rules” to Map Sales Process to the Configuration Get People to Use the System !!!



The ValueThe Value e-Commerce Assessment - identifies how the

organization will support the e-commerce vision

Sales Process Assessment - standardizes sale process

manufacturing Process Assessment - identifies areas for Process improvement and product standardization



Our AssessmentOur Assessment



Opportunity AS-IS TO-BE The Road Ahead

e-Commerce Assessment

Quantify the e-Commerce Value Proposition for company <xyz> (size of market, etc.)

Documentation of current Manufacturer’s e-Commerce Readiness

Architected solution to deliver the opportunity

Steps in moving from current e-Commerce Readiness State to Final State

Sales Process Assessment

What is the Sales Process Opportunity, How much can be saved in terms of time off of sales cycle, How much can the cost of a sale be lowered

Detailed Diagram of current sales process with current bottlenecks highlighted (normally points where expert knowledge is needed).

Architected sales process that will deliver the opportunity

Steps in modifying sales process in order to move the current state to the final state with time milestones and quantifiable deliverables

Manufacturing Process Assessment

What is the Manufacturing Process Opportunity, How much can be saved in terms of cycle time, financial impact of manufacturing process improvement (job shop routing, shop floor layout, manufacturing cells, lean manufacturing concepts, supply chain strategy, machining capabilities, workforce capabilities, etc.)

Detailed Diagram of current manufacturing process with current bottlenecks/opportunity areas highlighted

Architected manufacturing process that will deliver the opportunity

Steps in modifying manufacturing process in order to move the current state to the final state with time milestones and quantifiable deliverables (steps could include systematizing parts, process, etc.)

Benefits of SystemizationBenefits of Systemization Standardize the Variability Offered in the Product, Not the Product

– cost benefits of standardization– market benefits from offering wide range of custom products

Group Technology Coding Scheme For– immediate pricing– immediate delivery quotes– template-based product engineering– dynamic creation of Bill-of-Materials



>>> Cost reductions with increased market opportunities

GE Service PartsGE Service Parts 115 machine tools, 24 NC, ~250 direct employees 350,000 products per year 25,000 unique product designs per year 15,000 orders per year a classic job shop Won Society of Manufacturing Engineers’

prestigious LEAD Award for their PRC concept and supporting systems



GE’s MethodologyGE’s Methodology



•Divide Product Offering into Families–members of a family have similar blueprints and production processes

•Create Blueprint Templates for Each Family

•Create Coding Scheme

•Create Software Utilizing PRC System–sales support

–generative engineering / process planning

–scheduling system



Determining Your Determining Your eCommerce ReadinesseCommerce Readiness

What is your Ns%? - Ns% = Hours of non-sales personnel/total hours to generate rough price quote

How much does an order cost?- personnel time, facility time, rework, etc.

Calculating your Internet Opportunity- lowering operating costs, improved turn around, expected volume, keeping existing customers, etc.

How will you support eCommerce- accessing current customer service and computer abilities of your organization

For our detailed eCommerce Readiness Assessment, contact us at [email protected]



Questions & AnswersQuestions & Answers



For More Information:

Agent Technologies, Inc.eCommerce 4 Manufacturing (sm)www.agenttech.com866-561.7756513.942.9444

http://www.agenttech.com/

Date post:	07-Sep-2014
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