Srikanth SrinivasanConfigure Price Quote in QAD

1

Thirdware Overview

1200+Employees

20 Years Of

Excellence

Our Infrastructure

Partners

2 Delivery Centers6 Global Locations

20% owned by Ford Technology

300+Customers

85% Automotive

Project Executed in

40+ CountriesGeo Partners

NEO, BrazilSIT, MexicoCarutris, FranceKontextE, Germany

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Our Journey

1995 - 2000ERPImplementationsLargeMNCsandIndianConglomeratesManufacturing(Automotive)FocusIndia/APACFocus

2001 - 2005ExpandTechnology(MultipleERPs,EPM/BI,Java,.Net)FordStrategicInvestment(20%Stake)StrategicClientFocus- Ford,PfizerDeliveryExpansion- ChennaiDeliveryOperations

2006 - 2010USExpansion- MidWest/EastCoastFocusOracleandSAPPartnershipsTechnologyExpansioninStrategicAccountsBI/Analytics- Impetus

2011 - 2015ServicestoSolutionsFocusExSights– ProductStart-upInitiatedBI&Analytics- ExpandBeyondEPMISO–9K,20K&27KCertifications–Ford&PfizerODC

2016-2020Outcome BasedServicesDeliveryModelServicesAutomationandInnovationDigitalandProducts/SolutionsFocus

ERP Wave

Technology Expansion & Strategic Client Focus

US Geography Expansion& BI/Analytics Focus

Services toSolutions

Services Automation

& Digital

Technology:Enterprise Apps.

Vertical:Manufacturing-Auto

Geography:USA

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Configure – Price - Quote

Configure Price Quote MakeProduct and Component configuration Cost, List Price, Discounts Sales Quote Management Order Management, Planning and Manufacturing

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Gartner Study : CPQ Suite of Applications

This research note is restricted to the personal use of dharm@thirdware.com.

This research note is restricted to the personal use of dharm@thirdware.com.

salespeople to substantially reduce cycle times in responding to prospects' requests. It also helps inquoting error reductions, reducing rework and identifying the appropriate product combination.

Pricing engines and quoting systems help salespeople ensure that they arrive at suitable pricing forspecific product mixes or bundles, and that details concerning initial estimates, confidence quotesand final quotes are represented accurately. Price analytics and cost estimation functionality helpsellers evaluate different scenarios when structuring deals, and help protect deal profitability.However, pricing functionality is mainly limited to baseline price execution requirements — that is,managing pricing conditions, price recommendation while price analytics and optimizationcapabilities for historical waterfall analyses and making forecasts are largely absent, but availablethrough price optimization tools (see Figure 1).

Figure 1. Why CPQ?

Contract

Configuration

Quote

Pricing

Vision: Increase Sales• Better integrity and accuracy• Reduce sales errors• Increase average deal size

Vision: Improve Margins• Dynamic opportunity pricing• Improve margins• Improve win rates

Vision: Improve Satisfaction• Improve retention• Improve compliance• Risk management

Vision: Improve Efficiency• Reduce lead-to-order time• Improve responsiveness• Improve documentation

Source: Gartner (July 2012)

Leading companies realize that the sales experience is what creates customer preference. They arelooking for a technology that can automate the entire lead-to-order or cash process.

CPQ tools have moved beyond tactical internal sales-focused configuration solutions forsalespeople to use for configuring a product and pricing, and quoting that information to thecustomer in response to a customer request. CPQ tools are being adapted to become an entire

Gartner, Inc. | G00234291 Page 3 of 7

• Sales Configurators enables sales team to identify product variations quicker and efficiently.

• This enablement facilitates qualification and assessment of opportunities easier.

• Reduces cycle time in responding to the prospects.• Pricing engines and quoting systems help salespeople ensure that

they arrive at suitable pricing for specific product mixes or bundles • Price analytics and cost estimation functionality help sellers evaluate

different scenarios when structuring deals, and help protect deal profitability.

However, pricing functionality is mainly limited to baseline price execution requirements — that is, managing pricing conditions, price recommendation while price analytics and optimization capabilities for historical waterfall analysis and making forecasts are largely absent, but available through price optimization tools

By 2015, comprehensive, integrated automation of CPQ processes will help companies grow sales by 10% more than their current growth rate.

© Gartner – Gartner CPQ Foundational Research 2014

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Configure – Price - Quote

Configure Price Quote MakeProduct and Component configuration Cost, List Price, Discounts Sales Quote Management Order Management, Planning and Manufacturing

Rule-basedConfigurator

Best Pricing Sales Quote Sales OrderMRP

MSW/PSWWork Order / Repetitive

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Configured Product Vs ConfiguratorStandard Features(Configured Products)

Advanced(Configurator)

Configuration in Sales QuotesSales Orders

Sales QuotesSales OrdersStandalone

Configuration of SO BOMStandard Routing only

BOM / Product StructureRoutingsItem CodeSales Quote / Sales Order

Rules-based(guided selling)

No Yes

Configuration Types ATO, PTO/Kits ATO, PTO/Kits, CTOAssembly Simple

No pre-assemblySimple to ComplexPre-assembly possible

Work Orders Final Assembly (FAS) backflush Standard (MRP)Pricing Component-based Component-based, option-based or any

combination

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Key FeaturesQAD Configurator

Embeds product knowledge into

configuration model vs. “tribal knowledge”

1Presents user with a

plain English questionnaire to define the desire

configuration

2Enforces configuration

rules

3Identifies existing or new

configurations

4Automatically builds

master data to eliminate Engineering overhead -Items, BOM, Routings,

etc.

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QAD Configurator Creates …

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Configurable Item

Variant Item 1• Configurable

Structure• Configurable Routing

Variant Item 2• Configurable

Structure• Configurable Routing

• A configurable item is the parent item for a particular generic product structure• It is usually not an item that can be manufactured, held in inventory or sold• It is an identifier for the complete list of component items that can be configured in a product• For example, Instrument Clusters, Pressure Seal Valves, Wheel Chair, Wheel etc.

• A variant item is a configured end product created from a configurable item• As opposed to a configurable item, which is virtual and non-buildable, a variant item can be ordered and

manufactured

• A configurable product structure consists of all possible components and subassemblies that can be used to manufacture or assemble any variant of the product.

• A configurable routing consists of all possible manufacturing operations that can be performed to produce any variant of the product.

Configurator determines Configurations by …

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• Sales Configuration is the process of• Defining the Variables and Features that represent configurable product characteristics• Presenting Features as questions in the guided sales process (Questionnaire)• Setting up Sales Configuration Rules to ensure data collected from the Questionnaire is valid

• Variables are characteristics of products that can have a range of different values.• Variable Options are possible values for Variables.• Features are Variables that have been linked to a Configurable Item.• Feature Options are possible values for Features

Instrument Cluster : ZYZ High Power Instrument Panel LED 001Variable Variable Options Features Options AvailableGauge LED Lights Whites Cool 6500K Whites Cool 6500K Included

Whites Natural 4000K Whites Natural 4000K Included

Whites Warm 3200K Whites Warm 3200K Included

Blue Blue Excluded

Green Green Included

Amber Amber Excluded

UV (Blacklight) Added

Configuration Process

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Define Variables & Options

Link Variables & options as features & options related to a configurable item

Sequence the featuresAdd rules

(IF – THEN – ELSE) OR ASSIGN

Identify the features that form unique variant

and create Configuration Key

Variant Item Number Rule to define Item Number

Variant Item Data Rule to assign value to specific Item Data field like Desc. , Item Type, Group etc.

General & Variance product structure rule selectsproduct structure and components for the BOM.

Variant Routing rule selects routing and operations applicable

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Configuration Process

Questionnaire

Answer Questions

Features(and Options)

Sales ConfigurationRules

Configurable Item

Product ConfigurationRules

QAD ERP DataItem-Site DataProduct StructureRouting

Variant ERP DataVariant ItemItem-Site DataProduct StructureRouting

Create Variant

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Price

Feature

Feature Option 1Pricing Part P1

Feature Option 2Pricing Part P2

Price List orItem Master

Price

Price List orItem Master

Price

The QAD pricing engine supplies to Configurator the best net price and the best list price for the Pricing Part. By adding these prices for all Pricing Parts, the best net price and the best list price of the Variant Item can be calculated.

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Benefits and LearningsRequest for

QuoteEnter selections in the Configurator

Configurator creates configured Part, BOM

& Routing

Win the Quote?

Yes

End

Convert Sales Quote to Order

No

QAD builds Quote & its

sent to customer

v Every quote is configured, priced & costed automatically to allow comparisons & Best Solution.

v Order entry is simply the up lift of quote to sales order at touch of a button.

v Pricing controlled via QAD Price list.

v Increased standardisation of products allowing greater operational efficiency.

v Eliminate manual data entry.

v Variables and Features are defined by Engineering not by Sales or Manufacturing.

v Simplify Questionnaire for the End User.

v Configurator Support Pricing but not pricing tool. Avoid pricing for complex configurations.

Benefits Learnings

THANK YOU