Archive for White Papers, Industry Reports
NEWS RELEASE: Specialty Vehicle Manufacturers Excel at Automated Sales Functions
When compared to their peers in similar industries, transportation and specialty vehicle manufacturers are excelling at automating some of the most crucial selling strategies and critical links in the overall sales process. Looking to find out why transportation and specialty vehicle manufacturers are attaining higher sales effectiveness than comparable industries, worldwide software provider, Cincom Systems (http://www.cincom.com/acquire) recently completed a national survey of sales and IT executives (http://www.cincom.com/vehicle).
Of those surveyed, 70% have basic systems in place for tracking opportunities and responding to them, including following defined processes for nurturing and escalating sales leads through their channel partners. This is approximately 17% above the composite benchmark of comparable industries.
Of the transportation and specialty vehicle manufacturers surveyed, 70% have basic systems in place for tracking opportunities and responding to them.
“The greatest compliment any manufacturer can give a customer is to really listen to what their requirements, needs, preferences and unmet needs are during the bidding, estimating and quoting process,” says Louis Columbus, co-author of the report. “Being able to give customers the freedom to define just exactly how they want their specialty vehicles configured through the use of automated systems is turning this class of manufacturer into the leading trusted advisors of their industry.”
RFQ Most Likely Automated
When it comes to handling the request for quote (RFQ) cycle, transportation and specialty vehicle manufacturers are the most likely of those surveyed to use an automated workflow system (20%), where opportunities are captured in a system to classify, organize and escalate them.
Transportation and specialty vehicle manufacturers are the most likely of those surveyed to use an automated workflow system (20%) for request for quotes, where opportunities are captured in a system to classify, organize and escalate them.
“Manufacturers attaining best practices in managing the RFQ cycle don’t leave accuracy or product quality to chance,” continues Columbus. “These manufacturers are exceptionally thorough in how they manage RFQ development, scheduling and product delivery to make sure that customers’ expectations are met and exceeded often.
“The bottom line from this report is that exceeding customer expectations on a regular basis is the best strategy to compete in a tough economic climate – and using automated RFQ systems and processes is an accelerator to getting there,” says Columbus.
Yet a Large Gap Exists
Despite the use of best practices in the top echelons of the industry, 50% of those surveyed manually track RFQs or track them in separate systems. A technique that can, says Columbus, “leave the door open for competitors when accuracy or product reliability drops as a result of not capturing customers’ needs thoroughly enough.”
While 50% report that the status of sales opportunities is tracked by process mapping the majority of the time (21% higher than composite benchmark), another 40% admitted to tracking sales opportunities informally via email.
“If you want to see sales intensity, go on a sales call with a transportation and specialty vehicle manufacturer sales rep or distributor. Every sales call counts. Regardless if a bus or a fire truck or any other emergency vehicle is being specified, the discussion invariably turns to making the vehicles as responsive as possible at saving lives – and that is the best ROI of all,” says Columbus.
For a copy of Cincom’s “2009 Transportation and Specialty Vehicle Industry Survey Report,” visit http://www.cincom.com/vehicle.
For over 40 years, Cincom’s problem-solving software, services and people have helped thousands of companies all over the world grow and manage their businesses. For more information about Cincom’s products and services, contact Cincom at 1-800-2CINCOM (USA only), send an e-mail to info@cincom.com or visit the company’s website at www.cincom.com.
Related Links:
Cincom Systems website
http://www.cincom.com
Cincom Acquire™ manufacturing website
http://www.cincomacquire.com
Cincom Enterprise manufacturing website
http://www.cincomerp.com
2009 Transportation and Specialty Vehicle Industry Survey Report
http://www.cincom.com/vehicle
NEWS RELEASE: Specialty Vehicle Manufacturers Have Issues with ERP: Cincom Report
When it comes to ERP systems, specialty vehicle manufacturers have apparently chosen unwisely. None of those surveyed said their ERP systems exceeded their expectations. Most (50%) classified themselves as having an ERP system that “sometimes inhibits their ability.” While 40% report that their ERP systems provide “valuable information but also require frequent workarounds and customized data extracts.”
None of the transportation and specialty vehicle manufacturers surveyed said their ERP systems exceeded their expectations.
This is according to a 2009 research report by software maker Cincom Systems (http://www.cincom.com/erp) based on a national survey to sales and IT executives that sheds light on how these transportation and specialty vehicle manufacturing organizations are managing their businesses for increased efficiency and effectiveness.
“Clearly there is tremendous opportunity for those specialty vehicle manufacturers willing to invest in new technology to leapfrog their competition and realize a significant market advantage,” says Lou Washington, co-author of the report.
REPORTING VARIES
Only 30% of respondents initially integrate their accounting, finance and sales systems first. Fifty percent of transportation and specialty vehicle manufacturers have no project-management integration with accounting, finance or customer management systems. This creates a large gap between rapidly advancing manufacturers that are creating profit and loss statements per project and those that lack insight into the profitability by project on an ongoing basis.
50% of transportation and specialty vehicle manufacturers have no project-management integration with accounting, finance or customer management systems.
“Given these disparities, this segment is probably looking at a shakeout in the near future,” says Washington. “The recovery will bring the strong more opportunity faster and leave the weak in a weaker position than they occupy now.”
For a copy of Cincom’s “2009 Transportation and Specialty Vehicle Industry Survey Report,” visit http://www.cincom.com/vehicle.
ABOUT CINCOM SYSTEMS
For over 40 years, Cincom’s problem-solving software, services and people have helped thousands of companies all over the world grow and manage their businesses. For more information about Cincom’s products and services, contact Cincom at 1-800-2CINCOM (USA only), send an e-mail to info@cincom.com or visit the company’s website at www.cincom.com.
RELATED LINKS:
Cincom Systems website
http://www.cincom.com
Cincom Acquire™ manufacturing website
http://www.cincomacquire.com
Cincom Enterprise manufacturing website
http://www.cincomerp.com
2009 Transportation and Specialty Vehicle Industry Survey Report
http://www.cincom.com/vehicle
Commercial HVAC/R Manufacturers Lack Guided Selling: Cincom Report
Despite selling complex engineer-to-order products that are challenging to sell, none of the commercial HVAC/R manufacturers that responded to a recent Cincom survey stated that they had true predictive guided selling systems.
None of the commercial HVAC/R manufacturers that responded to a recent survey stated that they had true predictive guided selling systems
This is according to a 2009 research report by software maker Cincom Systems (http://www.cincom.com/acquire) based on a national survey to sales and IT executives that sheds light on how these commercial HVAC/R (heating, ventilation, air conditioning and refrigeration) manufacturing organizations are managing their businesses for increased efficiency and effectiveness.
“Long sales cycles, highly unique customer requirements, accuracy in pricing, configuration and manufacturing execution—these all combine to make this industry one of the most complex in managing the sales process,” says Louis Columbus, co-author of the report. “A truly predictive guided selling system is one of a handful of tools that help simplify this process.”
The research also showed that 27% of HVAC/R manufacturers have real-time availability of catalog content, pricing and sales data, including integration to engineering specifications and drawing—indicating this may be a best practice.
Lack of Dealer Tracking
Most commercial HVAC/R manufacturers use an indirect sales force in whole or in combination with a direct sales force. Yet none of those surveyed rely on advanced analytics and lead escalation in regard to opportunity tracking to ‘learn’ which channel partners can deliver the best sales performance by each type of lead. As a result, HVAC/R manufacturers are leaving money on the table in terms of understanding their customers and channel partners more effectively, and serving them more profitably as a result.
None of the commercial HVAC/R manufacturers surveyed rely on advanced analytics and lead escalation in regard to opportunity tracking to ‘learn’ which channel partners can deliver the best sales performance by each type of lead.
“The HVAC/R industry is the most demanding in terms of accurately communicating complex product information and knowledge throughout its distributor, dealer and partner networks,” says Columbus. “Relying on manually based processes constrains the ability to sell, and over time, steals profits from HVAC/R manufacturers. Automating pre-sales, sales and post-sales processes has proven to make a direct contribution to profitability in this industry.”
However, when it comes to measuring and managing the sales plan, 27% extensively use analytics and dashboards to optimize processes. This is 14% above a composite benchmark of similar industries.
For a copy of Cincom’s “2009 HVAC/R Equipment Industry Survey Report,” visit http://www.cincom.com/hvac.
About Cincom Systems
For 41 years, Cincom has helped thousands of clients worldwide by solving complex business problems with ideas, information, software and services.
Related Links
Cincom Systems website
http://www.cincom.com
Cincom Acquire™ manufacturing website
http://www.cincomacquire.com
Cincom Enterprise manufacturing website
http://www.cincomerp.com
2009 HVAC/R Industry Survey Report
http://www.cincom.com/hvac
NEWS RELEASE: Commercial HVAC Manufacturers Have Issues with ERP
When it comes to ERP systems, not all commercial HVAC/R manufacturers have chosen wisely. While 18% say their ERP systems exceed their expectations, 36% say it impairs their ability to react to market changes or to implement new business initiatives, and another 36% report that their ERP systems provide valuable information but also require frequent workarounds and customized data extracts.
When asked “What is the state of your current Enterprise Resource Planning (ERP) system?” 36% of HVAC/R manufacturers say it impairs their ability to react to market changes or to implement new business initiatives.
This is according to a 2009 research report by software maker Cincom Systems (http://www.cincom.com/erp) based on a national survey to sales and IT executives that sheds light on how these commercial HVAC/R (heating, ventilation, air conditioning and refrigeration) manufacturing organizations are managing their businesses for increased efficiency and effectiveness.
“HVAC is unique to other manufacturers,” says Lou Washington, co-author of the report. “The ability to react to changes in demand and changes in regulations as well as other dynamics make responsive ERP a requirement. Products for high-demand geographies have widely divergent characteristics. Products for India vary greatly from products designed for China and Western Europe, Brazil or Russia. Where that demand will occur over time is a real wild card when it comes to production planning.”
Mixed Mode Is Mostly Manual
Many commercial HVAC/R manufacturers manufacture products in a mixed mode, employing different production strategies for different product lines. Yet commercial HVAC/R manufacturers are not as advanced in managing these processes as their counterparts. Of those surveyed, 36% rely on a combination of manual processes and separate systems to manage mixed-mode manufacturing processes. This is 10% more than the composite benchmark of comparable industries. Manual mixed-mode processes often result in overtime and expediting as process workarounds.
When asked “How do you manage your mixed-mode processes?” 36% of HVAC/R manufacturers said they rely on a combination of manual processes and separate systems to manage mixed-mode manufacturing processes. This is 10% more than the composite benchmark of comparable industries.
Of the HVAC/R manufacturers surveyed, 18% have implemented an automated and integrated system to manage their mixed-mode manufacturing processes. That’s 5% below the composite benchmark.
“This market is becoming more and more sophisticated and complex,” continues Washington. “Green initiatives, ever-changing architectural elements in new construction and the increased preference for updating existing structures have placed a huge flexibility requirement on HVAC manufacturers. This is reflected in an increased need for nimble mixed-mode capability.”
For a copy of Cincom’s “2009 HVAC/R Equipment Industry Survey Report,” visit http://www.cincom.com/hvac.
About Cincom Systems
For over 40 years, Cincom’s problem-solving software, services and people have helped thousands of companies all over the world grow and manage their businesses. For more information about Cincom’s products and services, contact Cincom at 1-800-2CINCOM (USA only), send an e-mail to info@cincom.com or visit the company’s website at www.cincom.com.
Related Links:
Cincom Systems website
http://www.cincom.com
Cincom Acquire™ manufacturing website
http://www.cincomacquire.com
Cincom Enterprise manufacturing website
http://www.cincomerp.com
2009 HVAC/R Industry Survey Report
http://www.cincom.com/hvac
NEWS RELEASE: Electrical Equipment Manufacturers Excel at Mixed-Mode Manufacturing
CINCINNATI, Ohio ― Nearly half (48%) of electrical equipment manufacturers use an automated, integrated system to manage their mixed-mode manufacturing processes. This is 18% more than the composite average of comparable industries. An automated, integrated system often results in reduced inventory cycle times and costs.
When asked “How do you manage your mixed-mode manufacturing processes?” 48% of electrical equipment manufacturers said they use an automated, integrated system.
This is according to a 2009 research report by software maker Cincom Systems (http://www.cincom.com/acquire) based on a national survey of sales and IT executives that sheds light on how these electrical-equipment manufacturing organizations are managing their businesses for increased efficiency and effectiveness.
“In the face of accelerating product lifecycles compounded by a continual increase in product complexity, electrical-equipment manufacturers are finding mix-mode manufacturing strategies very effective in staying competitive,” says Louis Columbus, co-author of the report.
“Staying demand-driven, close to the customer and capable of meeting or exceeding their expectations is critically important in how competitive electrical-equipment manufacturing is becoming. Mixed-mode manufacturing gives companies the ability to flex in response to customers’ changing expectations and needs.”
OPPORTUNITY FOR ADVANCED ANALYTICS
The majority (86%) of electrical-equipment manufacturers rely on a combination of direct and indirect (distributors and dealers) sales channels. That’s 15% more than the composite benchmark. Yet, none of the survey participants rely on advanced analytics and lead escalation to ‘learn’ which channel partners can deliver the best sales performance by each type of lead. Instead, most (59%) rely on basic systems for tracking opportunities and responding to them, including following defined processes.
“Clearly multichannel management is a major issue for electrical-equipment manufacturers, and making channels effective begins with an aggressive approach to educating resellers and giving them the tools to be effective at selling,” says Columbus. “There is significant room for improvement in managing sales funnels, earning trust and creating loyal customers based on the results of our research.”
Despite the heavy use of indirect sales channels, when asked “How do you plan, manage and collaborate with the sales teams to properly direct and fulfill opportunities?” none of the surveyed electrical equipment manufacturers stated that they rely on advanced analytics and lead escalation to ‘learn’ which channel partners can deliver the best sales performance by each type of lead.
In addition, none of the survey participants have automated the critically important RFQ process nor use predictive guided selling systems.
For a copy of Cincom’s “2009 Electrical Equipment Industry Survey Report,” visit http://www.cincom.com/electric.
ABOUT CINCOM SYSTEMS
For more than 40 years, Cincom’s problem-solving software, services and people have helped thousands of companies all over the world grow and manage their businesses. For more information about Cincom’s products and services, contact Cincom at 1-800-2CINCOM (USA only), send an e-mail to info@cincom.com or visit the company’s website at www.cincom.com.
RELATED LINKS:
Cincom Systems website
http://www.cincom.com
Cincom Acquire™ manufacturing website
http://www.cincomacquire.com
Cincom Enterprise manufacturing website
http://www.cincomerp.com
2009 Electrical Equipment Industry Survey Report
http://www.cincom.com/electric
NEWS RELEASE: Nearly Half of Electrical-Equipment Manufacturers Use “Gut Feel” for Project Tracking: Cincom Report
CINCINNATI ― Nearly 50% of electrical-equipment manufacturers use manual tracking and “gut feel” to track project reporting, including project cost and profit. That’s 14% more when compared to a composite benchmark of comparable industries.
When asked “How is profit performance, cost and/or project reporting tracked, managed and communicated?” nearly 50% of electrical-equipment manufacturers said they used manual tracking and “gut feel.”
This is according to a 2009 research report by software maker Cincom Systems (http://www.cincomerp.com) based on a national survey to sales and IT executives that sheds light on how these electrical-equipment manufacturing organizations are managing their businesses for increased efficiency and effectiveness.
One of the reasons for the large lack of formal project tracking may be the lack of project-management integration. A full 50% of electrical-equipment manufacturers have no project-management integration with accounting, finance or customer-management systems. This creates a large gap between rapidly advancing manufacturers that are creating profit and loss statements per project and those that lack insight into the profitability by project on an ongoing basis.
“Without integrated project management, the company is blind to projects hemorrhaging quietly in their respective silos and equally unaware when projects are running ahead of schedule and under budget,” said Lou Washington, co-author of the report. “The end result is the same: assets mismanaged and resources wasted.”
ERP SYSTEMS CREATE FREQUENT WORKAROUNDS
Most electrical-equipment manufacturers surveyed report that their ERP systems provide valuable information. However, 86% of those surveyed stated their ERP systems also require frequent workarounds and customized data extracts. Slightly less than 50% of the composite benchmark had similar problems.
When asked “What is the state of your current Enterprise Resource Planning (ERP) system??” 86% of electrical-equipment manufacturers stated their ERP systems require frequent workarounds and customized data extracts.
“Manufacturers with hybrid sales channels should consider a project-based approach to defining processes with ERP,” said Washington. “Traditional ERP lacks the flexibility and responsiveness needed to support hybrid sales channels and project-management-based businesses.”
For a copy of Cincom’s “2009 Electrical Equipment Industry Survey Report,” visit http://www.cincom.com/electric.
ABOUT CINCOM SYSTEMS
For over 40 years, Cincom’s problem-solving software, services and people have helped thousands of companies all over the world grow and manage their businesses. For more information about Cincom’s products and services, contact Cincom at 1-800-2CINCOM (USA only), send an e-mail to info@cincom.com or visit the company’s website at www.cincom.com.
RELATED LINKS:
Cincom Systems website
http://www.cincom.com
Cincom Acquire™ manufacturing website
http://www.cincomacquire.com
Cincom Enterprise manufacturing website
http://www.cincomerp.com
2009 Electrical Equipment Industry Survey Report
http://www.cincom.com/electric
Media Contact:
Donna Hedge Burns
Corporate Public Relations
Cincom Systems
dburns@cincom.com
513-612-2305
