Adjust your quoting to the demand

Jesús Martínez, Director of Global Project Office of Lantek

For this reason, when designing a quoting model, it is essential that we choose the right approach in the calculation of these quotes considering what our specific characteristics as a business are and what kind of experts we have at our disposal. Based on this premise, we will be able to choose the right software, so we can win the quotes that best suit our activity.

If our plant produces metal parts with little variation for the same customers or the same parts we can be much more predictable when quoting. We will want to base the calculation of the cost of the part on the simulation of the nesting and machining that will be used in production. This option takes up more calculation time and more system resources, but in predictable and repetitive environments we can afford to do it this way since the order that we will execute in production will most likely be the same or very similar to the one we quote for.

However, in highly variable, flexible, very competitive environments with lots of different suppliers that are not exclusively available to us, it is difficult to predict how the quoted parts will eventually be produced. Instead, we need to approach the quote calculation in an agile way, based on previous experience which allows us to keep modifying our quotes as we start to see where our advantages lie.

In this type of environment, a calculation based on experience of use and consumption patterns extracted from real production data is much more realistic. It is also more efficient in the consumption of resources and is obtained at the speed required to ensure we are in the customer’s inbox before anyone else. Based on experience gained from previous operations we can accurately calculate an efficient configuration of material without undermining the profit margin and fulfilment of other orders.

Choosing one calculation mechanism or the other is essential when deciding on a quoting system and can be the key to ensuring quotes are accepted by our customers.

For any of these forms of calculation, we must consider additional costs regarding other logistical aspects associated with our production processes.

It would also be good to have a system of rates associated to each customer or type of customer that considers the differential treatment we want to provide based on the relationship we have with them.

Once the approach to the calculation of the quote has been chosen and the quote generation system has been put into operation, the next essential element in the success of this process is the configuration of the team that performs the calculations and prepares the quotes.

Traditionally, the sales forces of metal companies looking to convert quotes to win orders are usually comprised of mixed technical and sales roles. The technical side (receiving or designing the part, deleting the drawing or preparing it for use in the CAM system, nesting, refining the nesting, launching associated orders, etc.) requires a technical profile with engineering skills. The sales side (calculation of cost and price, preparation and presentation of the quote, negotiation and closing of the order, etc.) requires a sales profile with good prospecting and negotiation skills. Finding, training and retaining professionals who encompass both profiles is very laborious and difficult. A replacement process can ruin months of hard work on the customer portfolio.

Having a quoting system adapted to our characteristics allows us to specialize when it comes to our employees and have technical experts who are responsible exclusively for the technical side and salespersons who work solely on the quoting side. This reduces the training needs in each case and facilitates the recruitment of suitable experts. It would even be possible to geographically separate the two functions, or group them as appropriate, providing greater flexibility and less effort in getting new employees up and running.

When you have a specialized quoting system you can automate certain processes, customize the software to follow a calculation model, or have an online store integrated with this system. Implementing these functions provides access to 24/7 quote generation while expanding the scope of your sales effort.

Lantek provides experts in software system configuration and implementation that have created a service for generating quotes that are as dynamic and efficient as possible. This system ensures that we maintain and strengthen our competitive advantages and that we will have a greater chance of winning orders for customers.