global compressor selling at burckhardt compression · principles of how cs-sales works at...
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GLOBAL COMPRESSOR SELLINGAT BURCKHARDT COMPRESSIONZürich, November 26, 2013Daniel Schillinger
Online - Best PracticeNovember 26, 2013
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We develop compressor systems and offer components and services that help customers to minimize life cycle costs.As the only manufacturer we cover a complete range of reciprocating compressor technologies.We aim to achieve balanced growth while constantly improving our processes, extending our geographic reach and developing superior solutions for promising applications.
Burckhardt Compression – Who are we?
Online - Best PracticeNovember 26, 2013
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Our Core Competence – Reciprocating Compressors, Compressor Components and Service
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Reciprocating Compressor Systems
In operation as a systemWith many years of experience and professional competence we design and procure all the necessary parts of a compressor system.
Online - Best PracticeNovember 26, 2013
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The Full Range –Compressor Components and Services
COMPRESSOR COMPONENTS
Valves
Piston rod packings
Packing rings
Oil scrapers
Piston rings
Guide rings
Hyper Compressor components
More components
SERVICES
Burckhardt Valve Service
Spare parts logistics
Field service
Technical support
Component repair
Engineering services
Revamps
Condition monitoring and diagnostics
Training
We keep reciprocatingCompressors running endlessly
LOWESTLIFE CYCLE COSTS
LONG RUNNINGTIMES
HIGHESTAVAILABILITY
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Our Market Segments
Upstream oil & gas
Gas transport and storage
RefineryPetrochemical/
Chemical industry
Industrial gases
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Company Profile� CEO Marcel Pawlicek� Chairman of the board Valentin Vogt� Established 1844� Stocks quoted SIX (BCHN)� Employees (worldwide) 1’078� Turnover 2012 CHF 367 million
%
Compressor Systems
Components, Services & Support
59%
41%
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Qualified Employees Around the WorldBurckhardt CompressionSubsidiaries und Service Centers
AgentsBurckhardt CompressionManufacturing Locations
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� Certified quality and reliability� Continual pursuit of improvements� Thorough in-house expertise� Responsible and sustainable business practices
What You Can Expect from Burckhardt Compression as a Partner
Leading workmanship Proven dedication
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CRM @ Burckhardt Compression� Project startetd in 2011
roll-out from January 2013 – October 2013
� CRM launched for � New machine sales
� After sales case management
� CRM-Consultant:� Infoman up to June 2013
� Online as of July 2013
� CRM replaced a Winterthur-centralized, home-grown Excel-approach
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CRM Objectives� Structure tender information;
documentation; replace former central Excel approach
� Professional tool for the daily work of each sales rep
� Coordinate global quote work
� Globally share information and cooperate
� Manage the global CS sales force
� Gain transparency of future business, qualified forecasting
Grow orderintake andmarket share
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CRM: Accounts & Contacts (Master Data)
� Most important accounts are End-Users and EPCs� Each account has a unique «owner» within BC (BCx or BCAG)� Each account is assigned to one segment and has a defined order intake
potential� Information grows over time. Incomplete info is better than no info!
Structured end-user account withdifferent (sub-) accounts (e.g. locations, subsidiaries…)
SegmentOwnerPotential
Installed compressor atlocation (BC, OBC)Contact person atlocation
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CRM: End-User-Project, Opportunities and Quote
� The end-user project s allocated to one specific site of the customer (sub-account)� It contains one or more opportunities to sell a compressor� Each opportunity contains quotes to one or more EPC’s� All quote documents are available in SharePoint directly from the quote
Structured end-user account
End-User Project
Opportunities(to sell a compressor to an end-user)
Quotes(for the same compressor to various EPCs)
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CSS
CRM vs. ERP: Global Database� CRM provides globally one and the same data base� One global opportunity/quote view; one global case view
� One global Customer Universe with all contacts and addresses
� Instantaneous availability of data (e.g. actual Group Order Intake at any minute)
� ERP varies between subsidiaries; no global access possible
CS BCAG CSS Marketing Contracting
Common CRM Database
BC global network
CS BCxCS BCx
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CS Globalized Sales ProcessPrinciples of how CS-sales works at Burckhardt Compression
1. All business starts with the end-user, be early!
2. Clear ownership of customers
3. Sales is structured in segments of end-users
4. Sales work and decisions are done as close to thecustomer as possible
5. We apply a four-eyes-principle for key decisions
Online - Best PracticeNovember 26, 2013
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CS Globalized Sales ProcessPrinciples of how CS-sales works at Burckhardt Compression
1. All business starts with the end-user, be early!
2. Clear ownership of customers
3. Sales is structured in segments of end-users
4. Sales work and decisions are done as close to thecustomer as possible
5. We apply a four-eyes-principle for key decisions
Online - Best PracticeNovember 26, 2013
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Compressor Project
CS Globalized Sales Process
RFQ
orde
r
SOP
EPC
aw
ard
Identify opportunityCollect infoAssist spec
Budgetaryquote Firm bid
End-user
BCx, BCAG
…first ideas, FEEDselect processselect EPC
EPC Engineering, Procurement and Construction of project;Select compressor vendor
time
• End-user, EPC and BCAG are typically all in different countries• Typically, several EPC’s are bidding for one project
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CS Globalized Sales ProcessTwo crucial responsibilities of sales before quoting:
Identify opportunities before an EPC requests a quote• Ask end-users for their plans• Public project announcements• Commercial databases• …
Develop these opportunities before an EPC is awarded• …contacting a customer who has not asked us to see him• Listen to the customer and do not fill him up with product info• Think in the bigger picture of the process of the customer• Prepare yourself and know what your added value to the customer is• The best you can achieve: Helping the end-user to prepare the EPC-
subscription material
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CS opportunity pipeline:l Almost 2 bn CHF for the next 2.5 yearsl Good for the near/medium term futurel More distant future can still be improved
CS Global Sales Process - CRM
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Opportunity Funnel by Country
The Challenge• How many
opportunities are in the market?
• How can we identifymore?
• If we knew more, couldwe chase them andhow?
Source: CRM March 3, 2013Bubble Size corresponds to total value of opportunities
For «unknown» , the end-user is not known, i.e. we only have RFQ from EPC
Online - Best PracticeNovember 26, 2013
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CS Globalized Sales ProcessPrinciples of how CS-sales works at Burckhardt Compression
1. All business starts with the end-user, be early!
2. Clear ownership of customers
3. Sales is structured in segments of end-users
4. Sales work and decisions are done as close to thecustomer as possible
5. We apply a four-eyes-principle for key decisions
Online - Best PracticeNovember 26, 2013
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• End-customer is the origin of our business• Clear Customer Ownership• Sales force is segmented (both in BCAG and in all BCx)
Customer Ownership
Country a
Agent
Country b
BCx / Agent
BCAG
End-customersin segments
• The owner is responsible for the data (completeness, correctness)• The sales-person who owns the HQ of an international account is in charge to coordinate
Online - Best PracticeNovember 26, 2013
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CS Globalized Sales ProcessPrinciples of how CS-sales works at Burckhardt Compression
1. All business starts with the end-user, be early!
2. Clear ownership of customers
3. Sales is structured in segments of end-users
4. Sales work and decisions are done as close to thecustomer as possible
5. We apply a four-eyes-principle for key decisions
Online - Best PracticeNovember 26, 2013
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Sales is structured in segments of end-customers• A segment is a group of end-customers with similar needs• MRP (our strategy) defines 5 segments we focus on
CS Globalized Sales Process
Customers expectsegment specific know-how and added value froma CS sales person• Each sales person in both
BCAG and BCx isallocated to one specificsegment
• Eases introduction of newpeople/training
• Ensures that we add valuefor end-customers
Online - Best PracticeNovember 26, 2013
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CS Globalized Sales ProcessPrinciples of how CS-sales works at Burckhardt Compression
1. All business starts with the end-user, be early!
2. Clear ownership of customers
3. Sales is structured in segments of end-users
4. Sales work and decisions are done as close to thecustomer as possible
5. We apply a four-eyes-principle for key decisions
Online - Best PracticeNovember 26, 2013
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Who does what in the bidding process?
CS Globalized Sales Process
RFQ Order SOPEPCaward
…first ideasFEED
IdentifyOpportunity;Collect info;Assist spec
Budgetaryquote
Firm bid
End-user
BC
Opportunity
Budget Quote
Firm Bid (first EPC)
CRM-Entities
Order
End-user
BCx1sales
BCAGsales
EPC
BCx2sales
Firm Bid (second EPC)
Bid-Coordinator
coordinates between theBCx’s involved;
Supports and coaches
Opportunity-Owner
Owns the end-user;Knows first abot the project
Quote-Owner
Makes the quoteand leads nego
Online - Best PracticeNovember 26, 2013
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CS Globalized Sales ProcessPrinciples of how CS-sales works at Burckhardt Compression
1. All business starts with the end-user, be early!
2. Clear ownership of customers
3. Sales is structured in segments of end-users
4. Sales work and decisions are done as close to thecustomer as possible
5. We apply a four-eyes-principle for key decisions
Online - Best PracticeNovember 26, 2013
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3 Gates to be released by segment manager for every projectCS Globalized Sales Process
RFQ Order SOPEPCaward
…first ideasFEED
IdentifyOpportunity;Collect info;Assist spec
Budgetaryquote
Firm bid
end-user
BCx, BCAG
3 opportunity gates,released bysegment manager
Bidyes/no?
Release budgetquote
Release firm bid
Online - Best PracticeNovember 26, 2013
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Sales Management with CRMCRM Dashboard to follow-up opportunities (example T&S):
In-PlayOpportunities with quotesent to customer
WIP (Work in Progress)Opportunities team preparesquote for
ProspectsOpportunities team is not yetworking on
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Sales Management with CRM
Orders
� We are a partner to our end-user and identify opportunites early� We measure indicators that lead the order intake…
…and use those to manage the sales force (Opportunity Mgmt)
Opportunities KPI examples:
• # Customers (current and potential), i.e. the Customer Universe
• # Customers without open opportunities
• # Customers not visited in last 6 months
• # Visits per month
• # Opportunities without activity in last 3 months
Prospects
Work in Progress
In-Play
Time
Seite 30CRM Training CS-Process May 2013
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Learnings so Far• Process first, then CRM; Top-Management attention/involvement• Acceptance in the beginning lower than expected – good old
Excel-solutions… now increasing• Have a consultant who knows/shows standard functions before
customizing• CRM made forecast much easier and substantially more accurate• Global cooperation works well – but only if data is accessible to
all (data integrity/security issue)• Increased pressure on sales people due to high transparency• Substantial increase in order intake• Define KPI’s and visualize in dashboards; otherwise, overview
and priorities might get lost