Customer Self Service for Configured

ProductsHank Canitz – Sr. Dir Industry

Marketing

Midwest User Group Meeting

Mass Production to Mass Customization QAD Configurator QAD Customer Success Story Recommended Actions

AgendaMidwest User Group Meeting

3

Lower prices Higher quality Faster delivery Customized products

Customers DemandingMidwest User Group Meeting

“Mass Customization Is (Finally) The Future Of Products”

Forrester, April 15 2011

Mass Production …Midwest User Group Meeting

… Mass CustomizationMidwest User Group Meeting

6

The challenge– In a recent study more than 35% of consumers were

interested in purchasing build-to-order products

– A polarized economy will develop

The Impact– To meet CTO requirements manufacturers must adopt:

SC technologies that enable more efficient production Customer-facing technologies, like order configurator More effective management of engineering changes More accurate new product demand projections

The Emergence of Mass Customization

Midwest User Group Meeting

Commoditized Products High Value Offerings

7

Manufacturing StrategiesMidwest User Group Meeting

Variety

Volume

Design Purchase Manufacture Assemble Ship

Inventory Manufacture Assemble Ship

Manufacture Inventory Assemble Ship

Manufacture Assemble Inventory Ship

Delivery Lead Time

Delivery Lead Time

Delivery Lead Time

Delivery Lead Time

Engineer-to-Order (ETO)

Make-to-Order (MTO)

Assemble-to-Order (ATO)

Make-to-Stock (MTS)

Configure-to- Order (CTO)

8

QAD Configurator

Midwest User Group Meeting

9

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

QAD ConfiguratorMidwest User Group Meeting

10

Guided sales– Flexible questionnaire design– Powerful price calculations

Instant conversion of customer requirements into manufacturing requirements– Product configuration rules– Seamless integration

Intuitive, Informative, IntelligentMidwest User Group Meeting

11

Uses the QAD .NET UIMidwest User Group Meeting

12

Integration with– Sales Quotations– Sales Orders– Items and Item-Site records– Product Structures– Routings– Costing– Pricing

Available for QAD SE and EEMidwest User Group Meeting

13

Configurator uses QAD Enterprise Applications language infrastructure

Available in all QAD core languages

Externalization of labels & full translation

Midwest User Group Meeting

13

14

Meet customers’ specific requirements Streamlined order and quotation process– Reduced error rates– Reduces lead time to fulfill orders

Bridge knowledge gap

Your Competitive AdvantageMidwest User Group Meeting

15

Forecast consumption for planning items User defined warning messages Enhanced for kits and links to sales quotes/

orders New attribute creation rules Integration with enhanced best pricing

Key Recent Product EnhancementsMidwest User Group Meeting

March 2013 Release

QAD Configurator 5.4 Enhancements

Midwest User Group Meeting

16

17

Enhancement Release, March 2013– Variant Item Master Comment creation– EMT support: Supplier Item creation– Cost Roll-up control flag in Configuration

Rebuild– Usability and layout improvements in

Questionnaire

Configurator 5.4 ReleaseMidwest User Group Meeting

18

Creates master comments for configured item

Perfect to add configuration description and notes

Visible with item, sales order print, invoice print, et cetera

Can also be used to create comments in multiple languages

Variant Item Master Comment Creation

Midwest User Group Meeting

• EMT Process• Supplier Item is the cross-reference

to convert PBU SO/PO line items into SBU SO line items

• Master Comments can be used for Configuration Description

• Configuration Model• One central model• One Configurable Item

• Item• Set up Configurator Variant Item-

Site Records for both sites• BOM/Routing

• Linked to item number

Domain A

PBU Entity

SO Site

SBU Entity

Ship-From Site

SO SOPO

VItemVBOM

VRout.

VItemSite

VItemSite

CItem

COP

PC Rules

SC Rules

Supp.Item

EMT Support: Supplier Item Creation

Midwest User Group Meeting

20

Allows to rebuild configuration with or without a cost roll-up– A rebuild without cost roll-up is often done when

cost are frozen for a certain period (typically a financial year), but the actual configuration changes within this period

Cost Roll-up Control Flag in Configuration Rebuild

Midwest User Group Meeting

21

Less “white space” Logical features

display in one line Browse shortcut Alt-B Auto-complete

feature/option search text

Visual separation header data, configuration description in browse

Hide tabs without feature

Usability and Layout Improvements in Questionnaire

Midwest User Group Meeting

Configured Products Through the Web

Midwest User Group Meeting

22

23

Configured Products through the Web

Midwest User Group Meeting

CSS /Configurator

24

Five Simple StepsQAD CSS and Configurator Integration

1. Select configurable product from catalogue

25

Select Configurable ProductQAD CSS and Configurator Integration

CSS /Configurator

26

Step 2QAD CSS and Configurator Integration

2. Review standard configurations

1. Select configurable product from catalogue

27

Review “Promoted” Configurations

QAD CSS and Configurator Integration

CSS /Configurator

28

Step 3QAD CSS and Configurator Integration

2. Review standard configurations

3. Use as-is or change configuration

1. Select configurable product from catalogue

29

Select or Change ConfigurationQAD CSS and Configurator Integration

CSS /Configurator

30

Step 4QAD CSS and Configurator Integration

2. Review standard configurations

4. Add to shopping cart

3. Use as-is or change configuration

1. Select configurable product from catalogue

31

Add to CartQAD CSS and Configurator Integration

CSS /Configurator

32

Step 5QAD CSS and Configurator Integration

2. Review standard configurations 5. Check out

4. Add to shopping cart

3. Use as-is or change configuration

1. Select configurable product from catalogue

33

Check OutQAD CSS and Configurator Integration

Conclusion

Midwest User Group Meeting

35

Value of Using the QAD Configurator

Midwest User Group Meeting

Process Benefit Value

Configure complex products based on pre-approved engineering and sales business rules Product personalization / customization by semi-skilled sales staff

•Reduce errors •Reduce selling time •Increase market share•Improved sales productivity

•$000’s•50%-90%•5% to 10%•10% to 50%

Rules automatically translate possible configurations into actual items, product structures and routings

•Lower costs•Reduce errors•Reduced product lead-time

•5% to 25%•$000’s•10% to 50%

Rules based generation of variant item numbers enable re-order of configured items

•Increase customer satisfaction•Increase market share

•10% to 20%•5% to 10%

36

Determine the market for configured products in your industry…

Does your company have the desire and capability to design, manufacture, and sell configured products?

Build a business case to support getting into or improving your configured product capabilities through the use of the QAD Configurator.

To Configure … Or Not to Configure

Midwest User Group Meeting

Schedule an on-site discovery / vision engagement to let QAD help you determine how to efficiently & effectively offer configured products.

Let QAD HelpMidwest User Group Meeting

1

2

3

Discovery / Vision Engagement

• Rapid value assessment•Map QAD potential solutions

to business goals / strategies / tactics & processes• Recommendations & ROI

analysis of high potential areas

Process QSCANs4

Hank CanitzSenior Director Industry MarketingHCC@QAD.com

Questions?

Midwest User Group Meeting