Digital Transformation in Action – Quote to Order
When you manufacture complex machinery, quoting and pricing can be time consuming and cumbersome. Through digital transformation of the quote to order process, Vision Engraving and Routing was able to increase both the effectiveness and efficiency of its operations. By replacing spreadsheets with digital technology, Vision Engraving was able to eliminate over 3,700 hours of work annually.
Challenges and Opportunities
For more than 40 years, Vision Engraving & Routing Systems has been manufacturing computerized marking systems and accessories. The success of their engravers and CNC routers is a direct result of producing long-lasting, high-quality machines out of Phoenix Arizona. Each machine is meticulously crafted based upon the combination of hundreds of options specified by its customers.
Using spreadsheets to quote their customers took 20 or 30 minutes each and sometimes longer. Spreadsheets contained constantly changing machine information requiring maintenance in both the spreadsheet and business management software. Timing or improper spreadsheet maintenance could result in wrong part numbers, pricing issues or even worse manufacturing issues. The production errors were usually found when the customer received the wrong part and called tech support. The most common way to identify parts was to ask the customer to take a photo and then search the warehouse for the correct part. This process could take days to complete.
Digital Tools Solve Problems
Vision Engraving implemented the SAP Business One core digital platform and initially implemented a stand-alone product configurator. Although the configurator reduced quoting time and some errors on complex product configurations it still required dual database maintenance. Subsequently Vision Engraving implemented the CIS Configurator and has achieved both improvements in efficiency and effectiveness in the quote to order process.
- Real time integration with the SAP Business One database eliminated duplicate maintenance of parts.
- Quoting speed was reduced from an average of 20-30 minutes to 2 minutes!
- CIS Configurator generates an accurate custom Bill of Materials In SAP upon converting a sales quote to a sales order.
- Employee and customer system satisfaction increased with the new ease of use and reduction of errors.
Benefits of Digital Quote Transformation
The fully integrated digital quote to order process results in multiple benefits:
- With about 7,500 quotes annually, approximately 3,700 work hours eliminated.
- Elimination of errors is estimated to save over $50,000 annually.
- Estimated salary and benefits savings of $150,000 per year.
Because Vision Engraving self-implemented the CIS Configurator and CIS Model Builder, they achieved a full return on their investment in the first year and the benefits continue to accrue. They are now looking to build the CIS Configurator into their custom web site so customers can configure their own system. Another step in the transformation journey to increase effectiveness and efficiency.