Digital Transformation edge: ETO (Engineer To Order) Quotation Process

Digital Transformation edge: considerations on how ETO (Engineer To Order) quotation process be digitized?

Digitization in the quotation process to enhance efficiency and leverage business interface:

• Leverage digital IT capabilities in the quote process to achieve required accuracy and efficiency

• Store and retrieve past similar quote to maintain the reusability factor hence become more efficient

• Achieve digitization of the critical and time-consuming manual processes

• Integrate systems to share large files, such as design, drawings and specifications

• To accommodate change in customer requirements, implement the best way to retrieve earlier quote and the steps

• Achieve maximum digitization of the overall process to be an efficient to get the maximum turnout

Continuous improvement is a key to success and be a pacemaker, as the ETO quotation process runs through engineering, design, materials, SCM, pricing and each steps are interlinked and dependent, businesses are looking to digitize the processes to increase efficiency, accuracy of the quote considering reusability, content/knowledge management factors.

Why is it significant to handle the quote process efficiently?

Sales Quotation is heart of any business, which is expected to be as accurate as possible for companies to win business, often involves long lead items and heavy engineering content to manufacture products as per customer specifications for demanding customers!

Typically raw materials are purchased with specified engineering and drawings, which need progressive billing and regular quality, check and collect actual cost on the projects. It can substantially impact overall project execution, budget, planning, which makes it obligatory to retrieve information during the quote and needs to be tracked!

How does it impact the conversion ratio?

Efficiency and Accuracy depends on the factors such as cycle-time, reusability, integration, standard applications etc. being most efficient and as accurate as possible in the quote process is the key to accomplish and win the bids, which is achieved by leveraging digital technology and establishing dependable steps in the quotation process.

Methodology to analyse, benchmark and digitize quotation process

• Identify, evaluate and compare quotation process with cycle time

• Assess digitization opportunities for ex. retrieval of right version of the quote for quick edit/update and link change impact to the overall quotation, engineering-design, bill of materials, and supply chain management

• Measure process efficiency; differentiate according to the industry standards

• Compare benchmarking figures vs. identified improvements to foresee future state to be achieved

• Business case, process efficiency calculations, high-level plan & prototype case-to-case basis

• Combination of applications, tools, consulting and integrations can help achieving the required target

Target business values:

• Maximum E-Q turnout

• Accurate cost estimation

• Efficient solution preposition at the shortest timespan

• Adaptability/Reusability/Sustainability