A large industrial milling and logistics company experienced significant growth; however, it was not realizing the value expected out of a major systems transition effort. The company built robust mobile sales quoting, pricing and ticketing capabilities for the customer-facing sales and operations. While sales increased, DSO and inventories were increasing at a faster rate. Management expected the new systems to reduce the billing cycle and improve inventory.
Management hired Trenegy to evaluate the company’s bid to cash process and to implement process and organizational improvements, making the mobile applications more effective. The Trenegy team began by working with field-level personnel to clearly understand their working environment and functional requirements for the bid to cash processes. The employees in the field helped identify simple modifications for the system to make it more usable for the sales operations teams. As a result, the team established standard pricing and product/package configurations across the entire organization so that data inputs into the quoting process would be consistent. Trenegy concluded the project by developing a roadmap to redesign key work processes and organization roles to streamline the entire process.
Once the new pricing and ordering processes and organization improvements were put in place, sales quoting errors declined significantly and the company was able to cut their DSO by 24 days and significantly reduce inventories across the company. This also enabled the company to better predict material requirements, allowing them to better negotiate purchases from the suppliers at the mills.