With 25 branches and 24 regional locations throughout Australia and New Zealand, their strong customer focus promises to meet any need on time and within budget. While NHP stock an impressive 70,000 plus line items, they are much more than a component supplier. NHP source the highest quality products from leading global suppliers and customizes them into solutions for the local market. For the customized product systems and solutions, NHP utilized Product Builder, the native Microsoft Dynamics product configurator.
However, NHP was experiencing several problems; their business requirements were beyond the Product Builder functionality. Setting up the models specialized IT knowledge was needed. There was no functionality to facilitate e-business or customer self-service. What NHP needed was a tool that integrated with Dynamics 365 FO, which would enable them to improve customer service and be a launchpad for future initiatives. After an extensive evaluation process, CPQ was chosen.
Being confident with CPQ, NHP chose to start with the configured product that would deliver the most benefit, the Panel Board. It is also one of their most complicated product systems. The choice of the main switch, chassis, enclosure, and a number of circuit breakers are all interrelated and vary the bill of material required to assemble the finished good. Previously, only specialized sales representatives would quote them, and engineers would have to check each detail to ensure accuracy.
Now, CPQ is available to be used by the entire team, which means customers are served quicker, and engineers are now confident that the selections are accurate, which means they no longer need to check the details. Skipping this stage has shortened the delivery time. “CPQ has helped us win more orders as we can get the quotes to our customers quicker, and we can offer quicker delivery. We also don’t argue with the engineers over the designs like we used to”, says Leigh Heath, Sales Manager.
NHP is expecting a return on their investment of fewer than two years. In particular, getting the quote right the first time has realized a productivity improvement of around 20% for the sales and engineering teams. This results from the CPQ rules engines. The rules, determined by product managers and other specialists, govern what can and cannot be selected. The benefit derived from this is that the manufactured item’s details will always be right and will be right the first time. In particular, the bill of material, associated labor, and integration with Dynamics 365 FO, the price specific to the customer will be right. CPQ eliminates incorrect options from being selected.
Also, using CPQ has created standardization for customized products, which has delivered efficiencies for production. Because CPQ acts as a guided selling tool, the sales team is headed towards a particular solution while selecting a customized solution. Standardization brings the benefits of fewer shop floor errors and fewer parts used. Consistency of parts used means less variability in-stock required, which results in less stock, fewer errors, less freight, and ultimately better cash flow.
From the initial quote to final delivery, CPQ brings teams together by giving them centralized information and relevant tools that flow effortlessly into the ERP and CRM solutions. “Sales, Product and Project teams can now excel at their roles, so that the organization can focus on speed, high levels of quality, optimal customer pricing and strong profit margins.”
Looking to the future, CPQ, together with other initiatives, is one of the essential parts to NHP delivering an e-business solution to the market that will make the customer the biggest winner with a self-service solution that is accurate, fast, and easy to use.
Bart Couvreur, ERP Manager, says: “Our engagement the CPQ team has been great. From the start when we were inquiring about the solution, through implementation, and now when we have a question from time to time, we find the team knows their software inside out and are very responsive.”