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SCM-4 How to Position Customer Order Management Colleen Roberts, Product Marketing Manager

SCM-4 How to Position Customer Order Management Colleen Roberts, Product Marketing Manager. What’s the opportunity to sell Customer Order Management in 2004?. Customer Order Management was the highest PeopleSoft revenue SCM product category in target industries last year.

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SCM-4 How to Position Customer Order Management Colleen Roberts, Product Marketing Manager

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  1. SCM-4 How to Position Customer Order ManagementColleen Roberts, Product Marketing Manager

  2. What’s the opportunity to sell Customer Order Management in 2004? Customer Order Management was the highest PeopleSoft revenue SCM product category in target industries last year. Over 50% of companies plan to replace or significantly enhance their Order Mgmt systems in next two years. Source: AMR Research

  3. More than half of companies have more than one Order Mgmt system: Today’s Business Realities • the average company has 5+ • 43% of companies make one or more acquisitions per year • 61% of companies sell through an indirect channel • 45% of customers place orders through more than one channel • Challenges of Disparate Systems • 2/3 have partial or no integration, 68% of integration is hard coded • 50% have none or limited product and customer standardization Source: AMR Research

  4. Customer Example • PeopleSoft Products • Order Management • Inventory • Billing • Production Planning • Production Management Moved from three disparate order management systems to a single, flexible system. • Benefits • Order to Pick from 24 hours to < 15 min. • Near real-time order confirmations • Manage increased volume and complexity: 3,000 orders/day on 300,000 SKUs “PeopleSoft supported our needs to take thousands of stock and customized orders per day, pick and ship them within an hour of receipt, and manage lot tracking on a product line of about three hundred thousand SKUs.” Doug McClure, Director, Enterprise Applications

  5. Industries with highly fragmented systems… and available budget to fix Top Priorities: • Single, integrated order management system • Order visibility across supply chain • Single, shared customer record Top 3 Industries Chemicals High Tech Manufacturing Consumer Goods Source: AMR Research

  6. In summary: Many companies will replace their order management systems Gartner agrees… In 2004, a market resurgence for ERP will come…[from the need to] replace fragmented applications with a single …. integrated ERP application (0.8 probability). In the traditional markets (such as manufacturing and distribution), users will focus on consolidating vendor offerings…. Gartner, November 2003

  7. Q1: What percentage of companies plan to replace or significantly enhance their Order Management systems in the next 2 years? a) 20% b) 30% c) 40% d) 50% Quiz Q

  8. Agenda • The opportunity for Customer Order Management • Selling Strategy & Tactics • Target Industries • Pain Chain • Value Messaging and Power Positions • When to Position Enterprise & EnterpriseOne • Solution Overviews • Cross Sell / Upsell Opportunities • Competitive positioning • Customer Win Stories

  9. DISCOVERY QUALIFY SELECTION NEGOTIATION LEAD & CONTROL PRE-QUALIFY CLOSED/ TRANSITION Selling Strategy and Tactics

  10. Target SCM Industries Pre-Qualify Life Sciences Automotive Wholesale Distribution Consumer – Food & Beverage Consumer - Durables/Personal & Hsehld/A&F Industrial Manufacturing High Tech Electronics Chemicals & Lubricants Paper & Packaging Downstream Energy 725+ 400+ 630+ 600+ 900+ 800+ 450+ 170+ 100+ 125+

  11. Customer Order Management Pain Chain • Added new online order channel • Increased order rate 15% without added staff • Reduced build-to-order lead time 50% Qualify • Pain • “What do you mean we can’t support expanding our order channels?” • “You mean I have to talk to another dissatisfied customer??” • “We need to get revenue and profit levels up to the best in our industry” • Business Driver • Expand order channels with unified view • Reduce lost / dissatisfied customers • Revenue and profit growth CEO/CMO/Sales/CFO

  12. Customer Order Management Pain Chain • Promising orders used to take as long as 2 hours, now 45 seconds • Discount structures moved from giant Word document… now organized and easier to manage • 97% on-time delivery (up 19%) • Order processing time reduced 20% Qualify • Pain • “I don’t know how effective each promotion is, yet we spend a lot of money on promotions” • “Our order administration costs are too high… too many people…” • “We keep losing orders to competitors because they get delivery promises to people faster” • “We can’t measure our order fulfillment effectiveness, like our percentage of perfect orders” • Business Driver • Effective promotions spending • Reduce costs of order management, increase efficiency • Reduce lost orders • Ongoing performance measurement Operational Management

  13. Customer Order Management Pain Chain • 20% increase in order accuracy • 10% increase in sales volume • Effectively handled 400% increase in call volume • Automatically generating 300 customer price quotes daily based on changing commodity costs Qualify • Pain • “We spend so much time fixing order and fulfillment errors for customers” • ““It takes too long to enter orders and keep pricing up to date” • “We can’t see all the information we need to take orders from customers and answer inquiries” • Business Driver • Accurate order management • Fast order entry, automated efficient price management • Information visibility for customer service excellence Evaluation Team

  14. Customer Order Management Pain Chain • 50% reduced Quote Lead Times (30 days to 15 days) • 97% to over 99% inventory accuracy • 2.0 to 0.5 FTE IT Support Staff • 100% System Reliability (no downtime since inception) Pain “We can’t cope with the integration of too many fragmented order management systems“ “We need a system that can scale as our company grows, so we don’t have to replace the software again too soon” “We have to handle too many questions from our order entry staff… the software is too difficult to use” Qualify Pain “We can’t cope with the integration of too many fragmented order management systems“ “We need a system that can scale as our company grows, so we don’t have to replace the software again too soon” “We have to handle too many questions from our order entry staff… the software is too difficult to use” • Business Driver • Total cost of ownership • Scalability • Ease of use, ease of maintenance Technology Team

  15. “Value” Messages Lead & Control Integrated, single view of all order management Consistent customer service excellence Reduce costs, increase revenue and profits

  16. Q2: Which of the following are target industries for PeopleSoft Customer Order Management? • a) Life Sciences • Consumer Products • All of a, b and c • Paper & Packaging Quiz Q

  17. Q3: By what percentage did PepsiAmericas improve order accuracy? • a) 50% • 0% • 10% • d) 20% Quiz Q

  18. Lead & Control The $10 million dollar question: Which SCM Product Family do I sell?

  19. What should I consider before recommending Enterprise or EnterpriseOne Supply Chain Management? Lead & Control Areas to Consider: Leverage software already installed Existing Customer? What is the customer’s financial solution? • If Enterprise, then position Enterprise SCM • If EnterpriseOne, then position EnterpriseOne SCM

  20. What should I consider before recommending Enterprise or EnterpriseOne Supply Chain Management? Lead & Control EnterpriseOne Areas to Consider: Leverage software already installed Existing Customer? Must have iSeries? • EnterpriseOne and World run natively on IBM iSeries (AS/400) • 30+% of EnterpriseOne customers, 100% of World customers • EnterpriseOne is the leader in SCM solutions on iSeries • No other Tier 1 competitors run natively on iSeries

  21. What should I consider before recommending Enterprise or EnterpriseOne Supply Chain Management? Lead & Control EnterpriseOne EnterpriseOne Areas to Consider: Leverage software already installed Existing Customer? Must have iSeries? Mid-market Buying Criteria? How does the prospect Deploy, Buy and Use software?

  22. What should I consider before recommending Enterprise or EnterpriseOne Supply Chain Management? Lead & Control EnterpriseOne EnterpriseOne Areas to Consider: Leverage software already installed Existing Customer? Must have iSeries? Mid-market Buying Criteria? Consider Industry Matrix Which Industry?

  23. Industry Matrix Lead & Control

  24. What should I consider before recommending Enterprise or EnterpriseOne Supply Chain Management? Lead & Control EnterpriseOne EnterpriseOne Areas to Consider: Leverage software already installed Existing Customer? GUIDELINES ONLY Must have iSeries? Mid-market Buying Criteria? Consider Industry Matrix Which Industry?

  25. Q4: If your prospect insists on the iSeries platform, you will position the EnterpriseOne solution. • I don’t know • I don’t remember • False • True Quiz Q

  26. Power Positions Lead & Control Industry Proven Configurable and Flexible Comprehensive

  27. Target SCM Industries Lead & Control Life Sciences Automotive Wholesale Distribution Consumer – Food & Beverage Consumer - Durables/Personal & Hsehld/A&F Industrial Manufacturing High Tech Electronics Chemicals & Lubricants Paper & Packaging Downstream Energy 725+ 400+ 630+ 600+ 900+ 800+ 450+ 170+ 100+ 125+

  28. Industry Fit – PSFT solves Industry “Must Haves”                       

  29. Industry Fit – PSFT solves Industry “Must Haves” (cont’d)         

  30. Configurable and Flexible Lead & Control • Enterprise • Business rules • User preferences • Tool set • Process Modeler for both Enterprise and EnterpriseOne • EnterpriseOne: • Order Activity Rules • Advanced Preferences • Processing Options

  31. Comprehensive: EnterpriseOne Supply Chain Management Solution • Manufacturing Management • Quality Management • Requirements Planning • Engineer-to-Order • Procurement and Sub-contract Management • Buyer Workstation • Supplier Self-Service • Inventory Management • Bulk Stock Logistics • Warehouse Management • Transportation Management • Demand Forecasting • Demand Consensus • Strategic NetworkOptimization • Production andDistribution Planning • ProductionScheduling-Process • ProductionScheduling-Discrete • Sales Order Management • Advanced Pricing • Order Promising • Agreement Management • Product Variants • Base Configurator • Product Data Management • Service Management • Customer Self-Service

  32. Comprehensive: Enterprise Supply Chain Management Solution • Manufacturing • Flow Production • Quality Management • Catalog Mgt • eSupplier Mgt • Collaborative Supply Mgt • SRS • Strategic Sourcing • Purchasing • eProcurement • Services Procurement • Inventory • Demand Planning • Inventory Policy Planning • Supply Planning -- Multisite Material Plannetr • Supply Planning –Advanced Multisite Planner • Order Management • Order Capture Self Service • Product Configurator • Promotions Management • Billing • eBill Payment • Engineering • eProduct Management • Support • Field Service • HelpDesk

  33. Power Positions Lead & Control Industry Proven Configurable and Flexible Comprehensive

  34. Q5: Which solution family has configurable order activity rules? • a) Enterprise • EnterpriseOne Quiz Q

  35. Lead & Control EnterpriseSolution Overview

  36. Enterprise Customer Order Management products (SCM 8.8) • ________________________ • Inventory • Analytics • Order Capture Self Service • Support • Sales Other Enterprise products to position: • Order Management • Promotions Management • Product Configurator • Billing • eBill Payment

  37. SCM 8.8 – Customer Order Management enhancements • Release Themes: • Compliance and Best Practice • Total Ownership Experience • Global and Industry Enhancements Order Entry Self Service Enterprise Pricer Cross Docking Fulfillment Workbench Additional Trade Promotion Types Generic Credit Card Integration

  38. Customer Order Management Key 8.9 Enhancements • Mass Maintenance • Cost-plus Pricing • Enterprise Order Management Integration to EnterpriseOne • First step towards Shared Services/Distributed Demand Management (DDM)

  39. Lead & Control EnterpriseOneSolution Overview

  40. EnterpriseOne Customer Order Management products • ________________________ • Sales Management Analytics • Customer Self Service • Sales • Support Other EnterpriseOne products to position: • Sales Order Management • Advanced Pricing • Base Configurator • Order Promising • Agreement Management • Product Variants

  41. SCM 8.9 – Customer Order Management enhancements • Release Themes: • New ways to drive revenue and gain operating efficiencies • Meet industry-specific business process needs Product Variants (Size/color/style) Pricing and Promotions Order-to-Cash enhancements Reservations Management (Order Promising) Cross Docking Dual Units of Measure (Catchweight) Enhanced Lot Control

  42. Results of SCM 8.9 release • 300+ enhancements, 30 new/enhanced modules • 230+ shipments ww (Install Base/New), first live • Analyst coverage: reports/articles “The new modules and enhancements, which are far too many to list here, follow in J.D. Edwards' tradition...to provide good, pragmatic solutions that address the heart of their customer base...”John Moore, ARC Advisory Group

  43. Nth Am Press Coverage: 50+ articles, coverage in 90% supply chain publications, 60% of coverage put enhancements in industry context J.D. Edwards has announced a slew of enhancements to its ERP and supply-chain applications. Many of the upgrades cluster in particular vertical market areas, such as... – CRMDaily For consumer goods companies, the software provides pricing and promotion management, inventory and order management, enhanced lot control and cross docking and profit management. For industrial manufacturers and distributors, the software enhancements are in engineering project management, product configuration management, …. – InternetWeek J.D. Edwards has [kept its] vow to push out more products in the next 24 months than it has in any other two-year time frame – Computerworld

  44. PeopleSoft EnterpriseOne Customer Order Management Summary Roadmap 2004 Q2 Q4 Future functionality plans subject to change

  45. What is Demand Scheduling / Release Accounting? Many order management business models in industrial manufacturing look like: Customer Places Order Order Promise Order Accepted Manufacture & Deliver Release accounting supply chain model looks like: Long term contract negotiated Net schedules calculated Daily schedules/ forecasts received Manufacture, deliver, send ASN • Requirements: •Track contract compliance • Calculate CUMs • Auto pack-size rounding calculations • Packaging BOM, Pack records & scanning, ASN & Acknowledgements

  46. Cross-Family Opportunities • Into Enterprise deals: • Order Promising (custom integration / roadmap) • Into EnterpriseOne deals: • Promotions Management (custom integration / roadmap) • Enterprise CRM (shared services model) • Order Capture (gateway to Enterprise CRM) • Order Capture self service (B2C) • Sales / Support and other CRM

  47. Q7: Is Enterprise CRM integrated to EnterpriseOne SCM? • a) No • Yes Quiz Q

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