eCommerce 4 Manufacturing

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1) Learn How Manufacturers Can Leverage eCommerce
2) Learn How to Systematize Business Processess
3) Learn How to Access Your eCommerce Readiness

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eCommerce 4 Manufacturing

  1. 1. E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc. Agent Technologies, Inc. www.agenttech.com Ben Moore
  2. 2. Overview <ul><li>What is eCommerce? </li></ul><ul><li>eCommerce Facts & Predictions </li></ul><ul><li>eCommerce benefits for Manufacturers </li></ul><ul><li>Price Quoting Process </li></ul><ul><li>Our Implementation Process </li></ul><ul><li>Determining Your eCommerce Readiness </li></ul><ul><li>Questions & Answers </li></ul>E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  3. 3. What is eCommerce? <ul><li>Deals with using the Internet, digital communication and IT applications to enable the buying/selling process </li></ul><ul><ul><ul><ul><ul><li>The Gartner Group </li></ul></ul></ul></ul></ul>E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  4. 4. What is eCommerce? <ul><li>Online Price Quote System - allowing customers to generate price quotes online </li></ul><ul><li>Selling Products Online - allowing customers to configure and purchase online </li></ul><ul><li>eFactory (tm) - sending online customer configured orders to the plant floor </li></ul>E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  5. 5. eCommerce Facts & Predictions <ul><li>Over 80% of US companies have experimented with some form of online procurement </li></ul><ul><li>Nearly 40% of manufacturers provide customer order status online </li></ul><ul><li>Investment in e-business initiatives is on the rise driven by productivity increases and cost savings. </li></ul>E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  6. 6. eCommerce Benefits E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc. Grow Revenues Customer Service <ul><li>Cut Costs </li></ul><ul><li>Internet orders normally cost less than $1/order while phone/fax/mail orders cost more than $4/order </li></ul><ul><li>Elimination of errors and duplication of effort, fewer shipment returns </li></ul><ul><li>Redeployment of key personnel used in generating price quotes </li></ul><ul><li>Customer Service </li></ul><ul><li>Enhance loyalty </li></ul><ul><li>Improve customer satisfaction </li></ul><ul><li>Share information </li></ul>Source: Gemini C 4 Lab Analysis. <ul><li>Grow Revenues </li></ul><ul><li>Open for business 24 hours/day - 7 days/week </li></ul><ul><li>More Qualified Leads - leading to more sales </li></ul><ul><li>Ability to cross sell </li></ul>Cut Costs AT
  7. 7. eCommerce Benefits for Manufacturers <ul><li>Companies that have electronic access to their suppliers’ inventory data turn their inventory 13 times per year, versus nine for those that do not. </li></ul><ul><li>Companies with online order processing can turn an order over in 21 days, versus 26 days for companies that do not have such capabilities. </li></ul><ul><li>Companies that enable their sales force to view customer orders and product information online have between 27 percent to 38 percent fewer employees in their sales departments. </li></ul><ul><li>Companies that allow customers to configure their order at the point of sale ship orders in 14 days versus 29 days for companies without such a feature. </li></ul><ul><li>E-Commerce Trends Index by Ernst & Young and the National Association of Manufacturers </li></ul>E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  8. 8. Current Price Quoting Process E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  9. 9. Future Price Quoting Process E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  10. 10. Online Price Quote/ Configurator benefits E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc. <ul><li>Product Configurators offer a 25% reduction in cost of sales by decreasing the number of technical sales support staff to the number of sales staff required. </li></ul><ul><li>Product Configurators will provide sales organizations with a 2% increase in win rate and order size resulting in a 5.4% increase in revenues. </li></ul><ul><li>Product Configurators offer a 50-70% reduction in rework expenses for organizations with a 25% or greater order error rate. 25% is the industry average for made-to-order/assemble-to-order manufacturers. </li></ul><ul><li>Gartner Research </li></ul>
  11. 11. Our Implementation Process <ul><li>Assess Current Manufacturing/Sales Process for Product </li></ul><ul><li>Assess Current Manufacturing e-Commerce Readiness </li></ul><ul><li>Identify Product Components from Bill of Materials </li></ul><ul><li>Identify Sub-Assemblies and Overall Product Hierarchy </li></ul><ul><li>Identify Configuration Rules including Configuration Order </li></ul><ul><li>Identify “Rules” to Map Sales Process to the Configuration </li></ul><ul><li>Get People to Use the System !!! </li></ul>E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  12. 12. The Value <ul><li>e-Commerce Assessment - identifies how the organization will support the e-commerce vision </li></ul><ul><li>Sales Process Assessment - standardizes sale process </li></ul><ul><li>manufacturing Process Assessment - identifies areas for Process improvement and product standardization </li></ul>E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  13. 13. Our Assessment E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  14. 14. Benefits of Systemization <ul><li>Standardize the Variability Offered in the Product, Not the Product </li></ul><ul><ul><li>cost benefits of standardization </li></ul></ul><ul><ul><li>market benefits from offering wide range of custom products </li></ul></ul><ul><li>Group Technology Coding Scheme For </li></ul><ul><ul><li>immediate pricing </li></ul></ul><ul><ul><li>immediate delivery quotes </li></ul></ul><ul><ul><li>template-based product engineering </li></ul></ul><ul><ul><li>dynamic creation of Bill-of-Materials </li></ul></ul>E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc. >>> Cost reductions with increased market opportunities
  15. 15. GE Service Parts <ul><li>115 machine tools, 24 NC, ~250 direct employees </li></ul><ul><li>350,000 products per year </li></ul><ul><li>25,000 unique product designs per year </li></ul><ul><li>15,000 orders per year </li></ul><ul><li>a classic job shop </li></ul><ul><li>Won Society of Manufacturing Engineers’ prestigious LEAD Award for their PRC concept and supporting systems </li></ul>E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  16. 16. GE’s Methodology E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc. <ul><li>Divide Product Offering into Families </li></ul><ul><ul><li>members of a family have similar blueprints and production processes </li></ul></ul><ul><li>Create Blueprint Templates for Each Family </li></ul><ul><li>Create Coding Scheme </li></ul><ul><li>Create Software Utilizing PRC System </li></ul><ul><ul><li>sales support </li></ul></ul><ul><ul><li>generative engineering / process planning </li></ul></ul><ul><ul><li>scheduling system </li></ul></ul>
  17. 17. E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  18. 18. Determining Your eCommerce Readiness <ul><li>What is your Ns%? </li></ul><ul><li>- Ns% = Hours of non-sales personnel/total hours to generate rough price quote </li></ul><ul><li>How much does an order cost? </li></ul><ul><li>- personnel time, facility time, rework, etc. </li></ul><ul><li>Calculating your Internet Opportunity </li></ul><ul><li>- lowering operating costs, improved turn around, expected volume, keeping existing customers, etc. </li></ul><ul><li>How will you support eCommerce </li></ul><ul><li>- accessing current customer service and computer abilities of your organization </li></ul><ul><li>For our detailed eCommerce Readiness Assessment, contact us at info@agenttech.com </li></ul>E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc.
  19. 19. Questions & Answers E eCommerce 4 Manufacturing (sm) Solutions AT Agent Technologies, Inc. For More Information: Agent Technologies, Inc. eCommerce 4 Manufacturing (sm) www.agenttech.com 866-561.7756 513.942.9444

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