The Business Situation:
Loss of a major national customer focused attention to the bidding process for a product and services provider. The company realized that it was bidding for business without considering cost of product or service. Resulting in some deals being profitable, loosing money on others, and loosing the customer in some but increasing number of cases.

What was done:

Customer master data was extracted and scrubbed to establish a customer master data file.

All historical transactional raw data from the source ERP systems was analyzed to establish capacity, time trends, seasonality of demand and past profitability.

This established a single view of the customer’s business with the company.

To overcome the complexity of some products and services being free for some transactions and not for others. A data model was established to determine cost basis for products and services. Cost raw data was then applied against this cost model.

The cost and bid data was then synched to provide a consistent way to calculate profitability.

data was only half the problem and the rendering it in a usable format by the sales team was the other key challenge.

The tool was designed to:
work offline and online
Work with minimal data input
Provide detailed input capabilities to be within 10% of final bid
Increase profitability
NOT LOOSE THE CUSTOMER

Business Results:

The loss of customers was stemmed, deal profitability increased and  sales cycle time was reduced by at least 40% as this tool empowered the sales team with baseline numbers and facts.

The tool provided a historical view of the customer, provided “not less than” profitability numbers.

reduced the cycle time of endless sign offs that were previously required from each layer of management who were also essentially flying blind

enabled the sales rep to model what if product and service option scenarios along with the customer leading to a higher sell price point

Technical Environment:
CRM System:
ERP Billing System:
Reporting Dashboard:
Database Warehouse Platform:
Data Model:
Data Cleansing:
ETL Tools:
Customer Data Integration:
Portal System:
EDI Platform:

Glossary:

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