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Case Study: How Crestron Electronics Improved the Efficiency of Its Customer Service Returns Processes with SAP CRM 2007
 

Case Study: How Crestron Electronics Improved the Efficiency of Its Customer Service Returns Processes with SAP CRM 2007

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A case study on how Crestron enabled its SAP CRM 2007 to support its customer service by streamlining their Return Material Authorization (RMA) service process. Presented at the CRM 2009 Conferences ...

A case study on how Crestron enabled its SAP CRM 2007 to support its customer service by streamlining their Return Material Authorization (RMA) service process. Presented at the CRM 2009 Conferences in Nice, France and Orlando, FL.

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    Case Study: How Crestron Electronics Improved the Efficiency of Its Customer Service Returns Processes with SAP CRM 2007 Case Study: How Crestron Electronics Improved the Efficiency of Its Customer Service Returns Processes with SAP CRM 2007 Presentation Transcript

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    • Case Study: How CrestronElectronics Improved theEfficiency of Its CustomerService Returns Processeswith SAP CRM 2007Andrew HoCrestron Electronics © 2009 Wellesley Information Services. All rights reserved.
    • In This Session ...• Learn how Crestron Electronics has aligned its corporate strategy with CRM business initiatives to enable its long-term growth• Learn how Crestron has enabled SAP CRM 2007 to support their customer service by streamlining their Return Material Authorization (RMA) service process• Gain perspective on how a CRM conference room pilot (CRP) can jump start your business ownership, alignment, and involvement with the project• See how Crestron’s RMA process benefited from implementing SAP CRM 2007 2
    • What We’ll Cover …• Overview of Crestron Electronics• Examining the RMA legacy situation• Developing the project roadmap• Enabling RMA processes with SAP CRM 2007• Exploring the benefits received• Wrap-up 3
    • Crestron Electronics – Fast Facts• World headquarters: Rockleigh, NJ• Annual revenues: approximately $400 million• Offices: 53 (worldwide); 18 (U.S. and Canada)• Employees: 2,500+ (worldwide); 1,100+ (U.S. and Canada)• Founded: 1971• Ownership: Private, family-owned company• Web site: www.crestron.com• Business: s World’s leading manufacturer of advanced control and automation systems s Offers integrated solutions to control audio, video, computer, and environmental systems s Our customers are dealers and not the end users 4
    • Crestron Electronics – Business Illustration 5
    • Crestron Electronics – Business Projects Department• Formed at the end of 2005 to support Crestron’s transformation from a small “mom-and-pop” company to a mid-sized corporation• An IT department that is not the IT Department, but works very closely with them s Combines IT and business knowledge to affect change at Crestron s Responsible for all SAP-based project work at Crestron IT Business Projects Project Mgmt. Office: Technical Support: - SAP projects - IT infrastructure SAP Basis Support - Non-SAP projects - Telephony SAP Help Desk - Desktops/laptops Software Quality Control - Printers/copiers Intranet Support User manuals - Etc. User training 6
    • Crestron Electronics – SAP History • Cutover from legacy ERP system to SAP R/3 4.6c in April 2003 • Implemented SAP NetWeaver® Business Intelligence 7.0, SAP Enterprise Portal 7.0, and SAP Solution Manager 4.0 in 2007 • Upgraded from 4.6c to SAP ERP 6.0 at the end of 2007 • Approved SAP CRM 2007 implementation in early 2008 o w th SAP CRM 2007 ’s Gr Cre s tr o n Approved Business Complexity Business Projects Dept. Formed SAP R/3 Go Live Continuous SAPGAP! Enhancements andAdditional Business Process Initial SAP R/3 Functionality ChangesFunctionality (SD, FI/CO, MM, PP)Required Legacy ERP System Functionality 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 7
    • What We’ll Cover …• Overview of Crestron Electronics, Inc.• Examining the RMA legacy situation• Developing the project roadmap• Enabling RMA processes with SAP CRM 2007• Determining the benefits received• Wrap-up 8
    • Return Material Authorization (RMA) Process Overview• RMA involves the process of a customer returning a product to Crestron and our internal business processes to deal with the return• RMA is a core component of Crestron’s business s Integral to Crestron’s perceived value to our customers s Affects multiple departments from Customer Support and Order Processing through Service and Accounting• RMA is divided across customer and internal transactions: Customer Transactions Internal Transactions • Return for repair • Repair and return to customer • Return for credit/return for • Refurbish and return to stock exchange • Advanced replacement • Scrap 9
    • RMA Customer Transactions Overview• Return for Repair s Customer sends a broken product back to Crestron for repair s Once repaired, the product is returned to the customer• Return for Credit/Return for Exchange s Customer returns a recently purchased product s Crestron credits customer for return s If exchange, new PO is placed for replacement product(s)• Advanced Replacement s Customer reports to Crestron a broken product at a job site s Crestron immediately sends new replacement product to the customer s Customer returns broken product back to Crestron within 60 days 10
    • RMA Internal Transactions Overview• Repair and Return to Customer s Product is evaluated, repaired, and sent back to the customer s If product is Out-of-Warranty (or warranty is voided), then customer is charged for service• Refurbish and Return to Stock s Returned product is evaluated and determined to be “within bounds” for being returned to stock s Product is serviced, if necessary, and returned to stock• Scrap s Returned product is evaluated and determined to be damaged beyond repair (or obsolete for Sales) s Product is scrapped 11
    • RMA Legacy Systems Environment • Legacy RMA processing occurs across three disparate systems:RightNow Technologies Microsoft SAPApplication: RightNow Service Application: MS FoxPro for Application: SAP ERP 6.0 Windows 2.6aPlatform: Third-party hosted Platform: Windows 2003 (64-bit)Web-based application Platform: Windows 2000 (32-bit) Server ServerFunction: Function:• Serves as the Customer Function: • All new products going out Support Call Log • Serves as the RMA application via exchanges or advanced• All customer calls, both RMA- • All RMAs are logged into this replacements are processed and non RMA-related, are system by Customer Support through SAP Logistics logged in this application • All RMA processing Execution processes information is updated into this • All service invoices are issued system by various departments through SAP Financials • All inventory movements are tracked within SAP 12
    • Technology Reasons for Replacing Legacy RMA• RMA is running on an obsolete platform s FoxPro for Windows is completely unsupported by Microsoft s Last supported patch was in December 1999 (for Y2K)• Limited in-house technical support of RMA s Only one Crestron person has the expertise to maintain the application and provide adequate technical support for RMA s There is no technical support documentation• Limited disaster recovery for RMA s Only consists of the FoxPro database being backed up on a nightly basis s No tools are available for recovering from a FoxPro database corruption 13
    • Functionality Reasons for Replacing Legacy RMA• No integration between FoxPro, SAP, and RightNow s Many tasks are duplicated and highly manual s No reconciliation of returned products with orders and inventory in SAP, which results in an inaccurate Cost of Goods Sold (COGS)• Very limited, and highly manual, reporting capabilities s Very time-intensive to identify return trends s Difficult to link reported defects with any potential engineering and/or production issues s Requires senior-level staff (i.e., Managers and/or Directors) with in-depth knowledge to analyze data 14
    • What We’ll Cover …• Overview of Crestron Electronics• Examining the RMA legacy situation• Developing the project roadmap• Enabling RMA processes with SAP CRM 2007• Determining the benefits received• Wrap-up 15
    • Prioritizing Corporate Initiatives Reviewed list of potential initiatives with executives to “see what boils to the top” • Determined the biggest business needs for the immediate and near future • Determined what initiative best met these needs RMA Replacement Warehouse Management Sales and Operations Planning Sales Force Automation HR Info System 16
    • Mapping the Path to Project Success• Locked in executive agreement that RMA replacement was the next major corporate initiative• Developed the Project Roadmap s Determined any dependencies or “project pre-requisites” s Determined the actual project scope s Determined if the project, or any dependencies, could/should be done in phases (vs. all at once) s Mapped the project scope and all dependencies against a timeline• Communicated Project Roadmap to the company• Began work! 17
    • Determining RMA Project Dependencies• SAP requires Solution Manager in order to get license keys s Implemented SAP Solution Manager• Need to establish structured quality control for SAP enhancements s Implemented HP (formerly Mercury) Quality Center s Established a dedicated SAP testing team• SAP R/3 4.6c entered “Extended Support” as of December 2006 s Upgraded SAP R/3 4.6c to SAP ERP 6.0• Legacy RMA processes leverage existing SAP SD, FI, and MM functionality s Improved existing Order-to-Cash processes in preparation for CRM s Improved existing Supply Chain processes in preparation for CRM• Complex RMA analytics will require SAP NetWeaver BI to calculate properly s Implemented SAP NetWeaver BI and SAP Enterprise Portal 18
    • Determining RMA Project Scope• Replace FoxPro RMA system with SAP CRM 2007 s Replace all RMA-related functionality with SAP CRM s Primarily affects Customer Support and Service departments• Integrate SAP CRM with SAP R/3 s Tie new CRM RMA functionality with existing R/3 functionality (e.g., order entry, inventory management, invoicing, etc.) s RMAs flow seamlessly from department to department within one system• Integrate SAP CRM with SAP NetWeaver BI s Consolidate reporting to one system s Provide more powerful tools to analyze trends• Replace RightNow Service with SAP CRM 2007 s Track all calls, both RMA and non-RMA, within one system s Fully integrated Customer Support Call Center 19
    • Breaking Project Scope into PhasesPhase 1• Replace FoxPro RMA system with SAP CRM 2007 s Replace all RMA-related functionality with SAP CRM s Primarily affects Customer Support and Service departments• Integrate SAP CRM with SAP R/3 s Tie new CRM RMA functionality with existing R/3 functionality (e.g., order entry, inventory management, invoicing, etc.) s RMAs flow seamlessly from department to department within one system• Integrate SAP CRM with SAP NetWeaver BI s Consolidate reporting to one system s Provide more powerful tools to analyze trendsPhase 2• Replace RightNow Service with SAP CRM 2007 s Track all calls, both RMA and non-RMA, within one system s Fully integrated Customer Support Call Center 20
    • Splitting Phase 1 into Two Key Steps Phase 1• Develop a Conference Room Pilot of • Implement the new CRM RMA system the new CRM RMA application s Leverage findings from the Pilot to s Install “out-of-the-box” SAP CRM implement CRM RMA system 2007 (DEV and QAS environments s Integrate with SAP NetWeaver BI only) and develop necessary reports s Integrate with existing SAP ERP s Conduct iterative User Acceptance s Implement basic RMA functionality Testing to ensure continued s Actively demonstrate new business user buy-in functionality to key business users s Develop comprehensive user s Refine and finalize requirements manuals and conduct training for new CRM RMA system s Go live with new system when ready 21
    • Reasoning for a Conference Room Pilot• Keeps initial project focus on SAP CRM installation and not configuration s Flushes out and isolates any potential installation issues s Mitigates risk from implementing a newly introduced version of SAP CRM (2007 was still in early Ramp Up at the start of the project)• Serves as a “proof-of-concept” to demonstrate to the business that SAP CRM can handle the RMA processes• Dispels “myths” about SAP CRM and how it works• Sets the baseline for all CRM RMA business requirements• Reduces the business’ anxiety over change and helps with user acceptance 22
    • Uncovering Additional Functionality from the Pilot• Required SAP ERP changes were uncovered that directly affected the CRM RMA project s Obsolescing Materials – Updated the process in which materials are made obsolete in SAP (i.e., separate obsolete materials in Sales vs. Service) s Consignment – Updated existing consignment processes so that they flow more seamlessly with new CRM RMA functionality s Foreign Trade – Extended Foreign Trade functionality so that commercial invoices and HS Codes are automated for both Sales and Service• Scope creep is minimized when requirement “gaps” are identified earlier in the project timeline 23
    • Creating the CRM RoadmapPhase 11 Phase 33 Phase 5 Phase Phase Phase 5§§ Order-to-Cashprocess Order-to-Cash process §§ RMAReplacement –– RMA Replacement §§ ExpandedManagement Expanded Management improvements ––Phase 11 improvements Phase Phase 11(Conference Reporting Reporting Phase (Conference Room Pilot) Room Pilot) §§ AdditionalCRM RMA Additional CRM RMA §§ RMAReplacement –– RMA Replacement improvements (TBD) improvements (TBD) Phase 11(CRM RMA) Phase (CRM RMA) §§ CRMfor Sales (TBD) CRM for Sales (TBD) Phase 1 Phase 2 Phase 3 Phase 4 Phase 5 Phase 6 2006 2007 2008 2009 2010 2011 2012Phase 00 Phase 22 Phase 4 Phase 66 Phase Phase Phase 4 Phase§§ RMAReplacement RMA Replacement Order-to-Cash process § § Order-to-Cash process §§ RMAReplacement –– RMA Replacement §§ CRMfor Sales (TBD) CRM for Sales (TBD) improvements –– Phase 2 initiative isisgiven initiative given improvements Phase 2 Phase 22 §§ CRMfor Marketing CRM for Marketing the “Green Light” Supply Chain process § § Supply Chain process Phase the “Green Light” improvements §§ ExpandedManagement Expanded Management (TBD) ) (TBD§§ DevelopRoadmap Develop Roadmap improvements Implement Mercury § § Implement Mercury Reporting Reporting Quality Center §§ AdditionalCRM RMA Additional CRM RMA Quality Center Implement SAP § § Implement SAP improvements (TBD) NetWeaver BI, EP, and improvements (TBD) NetWeaver BI, EP, and SolMan §§ CRMfor Sales (TBD) CRM for Sales (TBD) SolMan Upgrade from 4.6c to § § Upgrade from 4.6c to ECC 6.0 ECC 6.0 24
    • What We’ll Cover …• Overview of Crestron Electronics• Examining the RMA legacy situation• Developing the project roadmap• Enabling RMA processes with SAP CRM 2007• Determining the benefits received• Wrap-up 25
    • Breakdown of RMA Replacement Phase 1• Business/Functional Solution Scope: • SAP Solution Scope: s Service Management s SAP CRM 2007 s Customer Service and Technical „ Interaction Center Support „ Service Management with s Installed Base Management WebUI s SAP ERP 6.0 s Warranty and Claims Management s SAP Enterprise Portal 7.0 s Complaints and Returns s SAP NetWeaver Business Processing in CRM Intelligence 7.0 s In-house Repair Processing in CRM s SAP Solution Manager 7.0 s Integration between SAP CRM and SAP ERP • Additional Technical Solution Scope: s Integration to SAP ERP for Inbound s HP Test Director 9.2 and Outbound Orders s Financial Management• Expanded Key Performance Management: s CRM Service Metrics Reporting 26
    • RMA Replacement – SAP CRM System Landscape SAP CRM 2007 – Crestron Specific CRM Scope SAP ERP 6.0 Customer Facing Communication Channels Configuration Data Master Data Transactional Data Interaction Center WebUI Master Data Transactional Data P Customers P Notifications and Escalations P Contact Persons P Service Level Agreements P Subcontractors P Entitlement SAP NetWeaver 7.0 BI P Employees P Complaints Processing Configuration Data P Employee Qualifications P In-House Repair Orders Master Data P Business Partner Relationships P Employee Calendar Transactional Data P Organization Structure P Service Confirmations (T&M) P Products P RMAs P Warranty Data P Billing Requests P Installed Base P Financials (Cost and Revenue) P Equipment P PartsThird-Party Applications P Pricing Interfaces P Service Templates Configuration Data 27
    • Recap of RMA Transactions• Customer transactions s Return for Repair s Return for Credit/Return for Exchange s Advanced Replacement• Internal transactions s Repair and Return to Customer s Refurbish and Return to Stock s Scrap 28
    • RMA Cycle in SAP CRM 2007• All RMA Customers Crestron Electronics, Inc. transactions Data Entry effectively run Customer Warranty through the same Support Check SAP cycle• Detailed example is an end-to-end Receiving Repair scenario: Accounting s Customer Transaction: Return for Product Delivery Service Repair s Internal Packaging Transaction: Repair and Return to Customer 29
    • Return for Repair (Walkthrough) 31 4 2 Enter call info into RightNow Service Customer Support Create Return forCustomer calls Representative takes Repair RMA w/complaint call Enter RMA info into SAP CRM • Some information from RMA calls Check Product will still be dual entered until RMA Warranty Replacement Phase 2 (Replacing RightNow with SAP CRM) is • SAP Customer Master and completed Material Master data are seamlessly integrated with • In the original legacy processes, RMA data entry information was dual entered into RightNow and FoxPro • Product warranties are checked when product is selected • RMA number is provided to customer 30
    • Return for Repair (SAP CRM Demo) 31
    • Repair and Return to Customer (Walkthrough 1 of 4) 1 2 3 4 Product is Product is scanned Customer ships received Service Tech assigned into Service inventory to product product • Receiving validates receipt• Customer attaches • Product enters into SAP • Repair Order(s) are of product Crestron-provided as “Blocked Customer automatically created s If RMA label is affixed to RMA label to package, then validating Sales Order” stock upon product receipt package (preferred, is very simple s Product can be easily • Service Manager but not mandatory s If no RMA label, tracked, but not on reviews Repair Order step) Receiving can still Crestron’s books and assigns it to Product is shipped validate receipt by Service Tech• s Product physically back to Crestron checking serial number moved to Service facility in NJ • If RMA match cannot be made, then new RMA created department and Customer Support • Confirmation of receipt is contacted to research automatically emailed or • RMA will be created for faxed to the customer anything that is received from a customer (even a non- Crestron product!) 32
    • Repair and Return to Customer (Walkthrough 2 of 4) 5 6 7 9 8 Repair estimate CSR contacts Customer Service Tech created w/ estimate and confirms repair Customer approves inspects product repair estimate• Service Tech • If product is under • RMA is “flagged” once determines any parts warranty, skip to Step the estimate has been and labor required to 10 (next slide), created repair product otherwise a repair • CSR can discount• If product is under estimate is created estimate as necessary warranty, Service Tech • Estimate includes • CSR gets customer’s determines if any both parts and labor decision for next steps: damage voids the • If repair estimate is s Continue with repair warranty (e.g., coffee greater than 80% of s Return product (as-is) was poured into the product price, then circuits) to customer product is s Scrap product for “uneconomical to repair” customer 33
    • Repair and Return to Customer (Walkthrough 3 of 4) 10 11 12 13 Service Tech Parts automatically Service completed Total repair cost enters and updates requisitioned recorded repair steps• More service metrics • SAP performs • Specific defect • Repair costs are requested by Available-to-Promise categories for each reported against management = More (ATP) check on any repair are recorded in Service Cost Center repair steps! parts needed SAP • Service metrics can • Parts are properly • Product defects can be tracked and decremented from be tracked and reported in SAP Raw Materials trended in SAP NetWeaver BI inventory NetWeaver BI • Greater executive visibility to the Service department 34
    • Repair and Return to Customer (Walkthrough 4 of 4) 14 17 16 Repaired product shipped back to Customer 15 Customer pays Crestron, if applicable Accounts Receivable processes payment, if applicable • Service Revenue will post to Service Invoice Service G/L automatically created • Service Revenue/Profitability will• Upon Service completion, product is sent to be more visible for tracking and Packaging, who then re-packages and ships reporting product back to customer• Nightly Post Goods Issue (PGI) runs and generates Service Invoice – similar to regular Sales Invoice• Repairs under warranty generate a $0 Service Invoice 35
    • Repair and Return to Customer (SAP CRM Demo) 36
    • What We’ll Cover …• Overview of Crestron Electronics• Examining the RMA legacy situation• Developing the project roadmap• Enabling RMA processes with SAP CRM 2007• Determining the benefits received• Wrap-up 37
    • Objectives for Determining Benefits• Understand impact and benefits of the CRM RMA solution on specific key business areas• Create an active feedback loop that will measure further improvements (or setbacks) as users become more familiar with the new system• Establish baseline for determining Return on Investment (ROI) for future CRM projects 38
    • Approach for Determining Benefits• Identify the business areas most affected by the RMA solution s Within each business area, determine the business benefit of the SAP CRM solution s For the business benefits determined, identify Key Performance Indicators (KPIs)• Define methods to measure each KPI s Interview business users and observe day-to-day processes s Analyze existing data captured within the legacy RMA systems (FoxPro and SAP R/3) s Define measurements quantitatively and qualitatively• Conduct research and analyze KPI measurements• Develop ROI conclusions 39
    • Identifying Areas Most Affected by New RMA Solution• Customer Support s Major change from legacy RMA processing – RMAs entered into SAP CRM instead of FoxPro s Changes affect all customer-facing operations for RMA request, approval, and inquiry• Service s Major change from legacy RMA processing – Repair information entered into SAP CRM instead of FoxPro s Changes affect all repair estimates, repairs, and packaging 40
    • Identifying Other Areas Affected by New RMA Solution• Logistics (Shipping/Receiving) s Some change from legacy RMA processing s Changes affect receipt and shipping of all RMA orders in SAP• Accounting s Some change from legacy RMA processing s Changes affect issuing credits and billing for Service in SAP 41
    • Identifying Customer Support KPIs – SamplesKey Performance Indicator Description Average time a Technical Support Representative (TSR) takes forWaiting Time to Receive the gathering the RMA details from the customer and providing back anAdvanced Replacement RMA RMA number to end the call Time it requires to submit an Advance Replacement order comprisedTime to Enter Advance of the following activities: Time for TSR to send email request to theReplacement Orders Advanced Replacement group + time it takes for the Advanced Replacement group to enter order in SAP Percent of orders that are not input into SAP until the next day of% of Adv. Repl. Orders request. Orders falling in this group are input in SAP the next day afterSubmitted Day After Request the RMA submission in FoxPro. This is usually due to orders being requested for input at end of day or outside working hours.Customer Inquiry Calls for RMA Percent of RMA Customer Inquiry Calls (calls simply asking for status)Status (% of Total RMA Calls) out of the total RMA calls in a day 42
    • Measuring Customer Support KPIs – SamplesKey Performance Initial Initial Expected Actual ImpactIndicator Measurement Perception ImpactWaiting Time to Receive Green Minimal (0) Time to enter an Advancedthe Advanced 2 minutes Replacement RMA remains atReplacement RMA approx. 2 minutes Yellow High (+) Time to “enter” an AdvancedTime to Enter Advanced 5 minutes Replacement order drops toReplacement Orders less than 1 minute% of Adv. Repl. Orders Red High (+) Percent of Advanced Replacements Submitted DaySubmitted Day After 13% After is expected to drop toRequest near 0% * Percent of Inquiry Calls Yellow Slight (+) expected to slowly butCustomer Inquiry Calls steadily drop as both customers and CSRsfor RMA Status (% of 43% acclimate to increasedTotal RMA Calls) automated communications (e.g., automated RMA Confirmation Notice) * * Full Actual Impact not thoroughly measured at time of this presentation 43
    • Identifying Service KPIs – SamplesKey Performance Indicator DescriptionCustomer Repairs – Service Average number of days it takes for a repair item to move fromTurn Around Time Receiving (to go to Service) to Packaging (when it completes Service) Percent of repairs orders that are otherwise ready for Packaging, but% of Repairs Staged for some part or accessories from the ship-with materials is missing and,Packaging that are Incomplete therefore, needs to be searched or procured Amount of time it takes for Crestron staff to build a quarterly or annualTime to Trend Analysis Report defect trend analysis report 44
    • Measuring Service KPIs – SamplesKey Performance Initial Initial Expected Actual ImpactIndicator Measurement Perception Impact Repair order processing times increase in SAP CRM vs. FoxPro due to increasedCustomer Repairs – number of service steps Yellow Slight (-) related to metrics dataService Turn Around 10 days capture. While overall ServiceTime Times are not severely affected, some significant bottlenecks have been identified.% of Repairs Staged for Red High (+) Better tracking of “ship- withs” is expected toPackaging that are 25% dramatically reduce thisIncomplete percentage * 3 days (standard Red High (+) SAP NetWeaver BI trendingTime to Trend Analysis reports) reports can be generated inReport 1 week (complex minutes vs. days reports) * Full Actual Impact not thoroughly measured at time of this presentation 45
    • Identifying Logistics KPIs – SamplesKey Performance Indicator Description Percent of products received that have RMA discrepancies (e.g.,% of RMA Items Received with products do not match what is expected on an RMA, products do notDiscrepancies have an RMA associated with them, etc.)Average # of Days to Resolve Average number of days a product sits “on hold” in Receiving while anDiscrepancies RMA discrepancy is resolved 46
    • Measuring Logistics KPIs – SamplesKey Performance Initial Initial Expected Actual ImpactIndicator Measurement Perception Impact Automated RMA labels should make it easier for Yellow Slight (+) customers to properly label shipments and prevent some% of RMA Items Received discrepancies. Also, greater 10%with Discrepancies ease of matching products received against an RMA in SAP CRM than in FoxPro should resolve other discrepancies * Yellow Slight (+) Greater tools in SAP CRM for Receiving to capture andAverage # of Days to 7 days notify Customer Support ofResolve Discrepancies any discrepancies should help reduce this number * * Full Actual Impact not thoroughly measured at time of this presentation 47
    • Identifying Accounting KPIs – SamplesKey Performance Indicator Description Average time to issue an invoice after a repaired product has beenTime to Invoice shipped to the customerTime to Provide Credit to Average time to issue a credit back to the customer after a returnedCustomer product has been received 48
    • Measuring Accounting KPIs – SamplesKey Performance Initial Initial Expected Actual ImpactIndicator Measurement Perception Impact Yellow High (+) Service Invoices will automatically generate nightlyTime to Invoice 4 days once the repaired product is shipped so Time to Invoice drops to 1 day Credit Memos will Yellow High (+) automatically generate nightly once the product is inspectedTime to Provide Credit to and the credit is approved. 21 daysCustomer While inspection time is relatively unaffected, the time to generate the memo drops to 1 day. 49
    • What We’ll Cover …• Overview of Crestron Electronics• Examining the RMA legacy situation• Developing the project roadmap• Enabling RMA processes with SAP CRM 2007• Determining the benefits received• Wrap-up 50
    • Resources• Official SAP CRM brochures and white papers s www.sap.com/usa/solutions/business-suite/crm/brochures/ index.epx s Most pertinent Solution Brief is “Service: Maximize Service Profitability”• Additional white papers can be located using www.findwhitepapers.com (free registration required) s “Seeing the Big Picture: A Corporate Guide to Better Decisions through IT” (Technology Evaluation Centers, 2007) „ www.findwhitepapers.com/whitepaper1686 s “CRM Without Compromise: A Strategy for Profitable Growth” (SAP AG, 2007) „ www.findwhitepapers.com/whitepaper1711 s “Differentiation through Service Excellence: Driving Customer Loyalty and Service Profitability” (SAP AG, 2008) „ www.findwhitepapers.com/whitepaper2831 51
    • 7 Key Points to Take Home• Clearly define the reasons for why you are implementing SAP CRM at your business s Identify both functional and technical reasons s Set foundation for which all future CRM work can be based upon• Create a project roadmap to plan out your timeline and resources s Identify exactly what needs to be done for a successful project s Help set expectations with executives and the business users• If implementing SAP CRM for the first time, consider starting with a Conference Room Pilot s Equalize your users’ understanding of SAP CRM before finalizing any new business requirements s Mitigate risk by helping to separate installation issues from configuration issues 52
    • 7 Key Points to Take Home (cont.)• For Customer Call Center functionality, always be aware of how new CRM functionality may affect call times• For Service functionality, always be aware that more Service metrics can mean more Service steps s Find the right balance!• Identify and define your planned CRM benefits and Key Performance Indicators (KPIs) s Remember to establish a baseline measurement before the project begins s Have both quantitative and qualitative measurements• Acknowledge both positive and negative metrics garnered from your KPI analysis s Use negative metrics to plan out next steps, as well as for Lessons Learned 53
    • Your Turn! How to contact me: Andrew Ho aho@crestron.com 54
    • DisclaimerSAP, R/3, mySAP, mySAP.com, xApps, xApp, SAP NetWeaver ®, Duet™, PartnerEdge, and other SAP products and services mentioned herein aswell as their respective logos are trademarks or registered trademarks of SAP AG in Germany and in several other countries all over the world. Allother product and service names mentioned are the trademarks of their respective companies. Wellesley Information Services is neither owned norcontrolled by SAP. 55