Efficient offer management
Only the best offer wins!
Convince your customers by making the best offer and reducing the costs for your proposal preparation. Increase the success rate of your offers with a customized offer process and optimized costs! Our benchmark “efficient offer management” shows that many companies regard their offer management as a pure function of their technical offer processing. Relatively few companies make use of the high potential offered by a systematic offer system, even though an efficient offer system can achieve substantial profit with little effort. Time, costs, and risks are immediately affected if your company exhausts all possible potential and reduces the complexity of your quotation process, resulting in higher success rates for your quotations. Individual offers for more complex products – typically products of the machinery and industrial engineering sector or capital goods – comprise the highest potential, time, resource input, and risks through the implementation of a better offer management.
The aim of offer management: securing the contract
Efficient offer management
• Increase in quality
due to high-quality customized quotation based on existing know-how with minimal resource input
• Risk minimization
due to a defined configuration, supportive configuration logic, detail offers, and obligatory risk assessment
• Maximum profitability
ddue to efficient, (partly) automated proposal preparation with sufficient level of detail, and high cost transparency
optimization of offer process
Untapped potential in quotation management
The proposal preparation process developed historically in multiple, complex ways and comprises interdependencies between various actively involved parties. What does the optimum, efficient offer proposal process look like, and how can it be usefully supported by IT? Previous projects rarely focused on the offer process. An offer needs to be customized to customer demands, and generated quickly and cost-effectively in order to be competitive. Which process improvements effectively result in an offer that meets these requirements, with adequate quality and minimized risks? Offers can be prepared efficiently in a company-specific offer process with usefully implemented IT support.
Challenges and opportunities in offer management
The importance of offer management for the success of a company is generally recognized. However, the leverage effect of offer management is only partially used. With an industry average success rate (rate of newly-won orders) of approximately 25 per cent, every additional per cent of won orders results in up to four per cent more revenue.
• Complexity is the biggest current challenge, followed by insufficient resources and lacking standardization potential.
• With the help of expert input, offers can be prepared fast and flexible. Mistakes can be reduced through automation and standardization.
• The focus on bidding costs is particularly important: on the one hand production costs for the proposal preparation, and on the other hand the high costs that result from lost offers of complex products. Selective proposal preparation and an early assessment of prospects are useful decision-making tools that contribute to cost reduction by helping to decide whether or not to issue offers.
In order to examine the current corporate situation, BearingPoint conducted a benchmark study in leading German industrial companies. The benchmark reveals that the proposal preparation process developed historically in multiple, complex ways and comprises interdependencies between various actively involved parties. These interdependencies in particular rarely receive attention during processing. The benchmark also shows that quality is the most important criteria during the development of offer management. Quality means the preparation of customized information, as well as the systematic communication of strengths of the offered product for all stakeholders. The highest level of quality is found in companies that have holistically renewed their offer management in recent years. The importance of offer management for company success was generally recognized. The focus on bidding costs is particularly relevant in terms of process costs for the proposal preparation, as well as the high costs that result from lost offers of complex products. Selective proposal preparation and an early assessment of prospects are useful decision-making tools that contribute to cost reduction by helping to decide whether or not to issue offers. It is also noteworthy that useful IT support allows for efficient offer processes and helps to adequately meet challenges.
Do not miss the opportunity to learn more about the ‘maturity level’ of your quotation management. Your company profits from an individual benchmark that answers questions such as:
• How does your company compare to others?
• How can your offer management still be improved?
In addition to the participation in the benchmark study, we offer you an in-depth potential analysis with the help of our Quick Scan. Experienced BearingPoint professionals analyze your offer management with you, based on the BearingPoint production model. Our potential analysis of “efficient offer management” enables you to:
• identify cost drivers
• detect and make use of potentials for improvement
• define and structure products intelligently
• benchmark your offer management with differentiation between similar
anonymized companies, in order to identify useful IT process support
You know why.
We know how.
• Data acquisition:Experienced consultants gather and structure relevant data on-site.
• Assessment: With the help of anonymized comparative data, we conduct a benchmark study and individually evaluate the collected data.
• Revealing potential for optimization: Based on the evaluated data, we deduce potentials for production optimization and useful IT support.