Recently, I was reading a white paper about contract manufacturers. Since everything they manufacture is a custom product, they have issues that are unique to them. However, some of their issues may exist in your company as well.

Their primary challenge is achieving effective communications between departments which traditionally function independently – sales with engineering and engineering with manufacturing.

This week, let’s examine sales issues. I pick this one first because I see lots of room for improvement.

• The quote process is so lengthy that it keeps the bid success rate low
• Sacrificing accuracy/completeness of customer requirements in an effort to shorten the quote process causes way more problems than it solves
• The inability to know the margin on an order at the time of the quote – will your company actually make a profit on this order
• Lengthy approval process for drawings and 3D models
• Frequently going back to the customer to re-price an order due to ‘late stage’ discoveries
  

Our Thoughts…

I believe that most companies understand their change process and I believe that they know that this is the most complex and expensive process in their organization.

I also believe that most companies understand there are problems surrounding their sales and quote process. And, I believe that most companies have no idea how much this is costing them in their relationships with their customers and in shear time [dollars]. Think of the [daily/monthly] frustrations that you and your employees must endure.

My take – On one hand, I see many companies facing these issues regularly and on the other, I don’t see much attention [$] being paid to resolve them.

Your Thoughts…