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TRANSCRIPT
© 2011 Tom Sant
The Business Case Determines:
Persuasive structure
Client centered
Value based
Clear
© 2011 Tom Sant
Real deal?Canwe compete?
Can wewin?
Do they have a compelling need?
Do they have budget?
Do we have a relationship?
Do we match their key requirements?
- Technically?
- Management plan?
- Resource capabilities?
Do we have meaningful differentiators?
Are we at the right level, speaking to the right people?
Can we offer a compelling value proposition?
Is there a strong bias in our favour?
Can we influence the decision criteria?
A three-phase process….
Effective Qualification
© 2011 Tom Sant
Suited to the Purpose
Purpose:Why?
Structure
• Informing
• Evaluating
• Persuading
• Facts
• Opinion
• Motivation
© 2011 Tom Sant
Suited to the Audience
Audience: Who?
Style
• Level of expertise
• Personality type
• Role in the process
• Word choice
• Amount of detail
• Evidence and emphasis
© 2011 Tom Sant
Informing
© 2011 Tom Sant
Informing
1. Most important (most general) fact first2. Next most important fact next, etc.3. Simply quit at the end4. Emphasis on accuracy, conciseness
p. 14
© 2011 Tom Sant
Evaluating
1. Top bun: the introduction• What or who are you evaluating?• Why does it matter?• What are your criteria?
2. Meat in the middle• Provide the facts • Maybe a chart
3. Bottom bun: the conclusion• Your opinion• Next steps, if any
© 2011 Tom Sant
The Persuasive ParadigmThe Structure of Persuasion
• Needs: The customer’s key business needs, problems, issues, pains, or opportunities: the drivers behind the deal.
• Outcomes: The positive impact that will come from meeting those needs: the motivation to move forward.
• Solution: A recommendation for a product or service that will solve the problem and deliver the outcomes
• Evidence: Proof you can do the job on time and on budget: your differentiators.
N
O
S
E
The NOSE Pattern
© 2011 Tom Sant
Establishing Trust in Business
C x RS
Where:
T = trust
C = credibility
R = rapport
S = risk of self-serving behavior
T =
© 2011 Tom Sant
Selling on Trust
C x RST =
Where:
T = trust
C = credibility
R = rapport
S = risk of self-serving behavior
© 2011 Tom Sant
Selling on Trust
C x RST =
Where:
T = trust
C = credibility
R = rapport
S = risk of self-serving behavior
© 2011 Tom Sant
Taking the Customer’s Point of View
The Primacy Principle:
First experience are normative.
What you say first, I assume reflects your primary interests and values.
© 2011 Tom Sant
Minimize Cognitive Dissonance
What are the sources of cognitive dissonance?
Gaining trust = gaining influence.
© 2011 Tom Sant
Cognitive Dissonance:Do you think the way I think?
• First focus?
• Play the name game.
• Products or solutions?
• Whose jargon is it anyway?
• Price or value?“Don’t waste my time with a bunch of boilerplate!”
© 2011 Tom Sant
Client-centered vs. Self-centeredClient-Centered Self-Centered
1. Focuses on the client's needs, key business issues, problems, or objectives
1. Focuses on technology, on you as a vendor, on your company’s history or capabilities, or on the price
2. Presents solutions 2. Presents information in reaction to a request
3. Looks toward long-term relationships 3. Focuses on short-term goals (at least in the subtext)
4. Partnership orientation 4. Vendor/buyer orientation
5. Emphasizes Return on Investment, payback, or other quantifiable measures of impact
5. Builds on profit margin
6. Points out value-added aspects of the solution
6. Line-item selling
© 2011 Tom Sant
The Elements of Trust
Identify ways you can maintain the elements of trust in your proposal—specifically, rapport, credibility, and low risk.
Rapport Credibility Minimal Risk
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
© 2011 Tom Sant
The Elements of Trust
Identify ways you can maintain the elements of trust in your proposal—specifically, rapport, credibility, and low risk.
Rapport Credibility Minimal Risk
1. Focus on their needs
2. Focus on their outcomes
3. Minimal use of jargon.
4. Use their name; “you”
5. Avoid cliches, legalisticlanguage
1.
2.
3.
4.
5.
1.
2.
3.
4.
5.
© 2011 Tom Sant
The Elements of Trust
Identify ways you can maintain the elements of trust in your proposal—specifically, rapport, credibility, and low risk.
Rapport Credibility Minimal Risk
1. Focus on their needs
2. Focus on their outcomes
3. Minimal use of jargon.
4. Use their name; “you”
5. Avoid cliches, legalisticlanguage
1. Case studies
2. References
3. Project plan
4. Industry knowledge
5. Company history
6. Resumes
1.
2.
3.
4.
5.
© 2011 Tom Sant
The Elements of Trust
Identify ways you can maintain the elements of trust in your proposal—specifically, rapport, credibility, and low risk.
Rapport Credibility Minimal Risk
1. Focus on their needs
2. Focus on their outcomes
3. Minimal use of jargon.
4. Use their name; “you”
5. Avoid cliches, legalisticlanguage
1. Case studies
2. References
3. Project plan
4. Industry knowledge
5. Company history
6. Resumes
1. Guarantees
2. Gain sharing
3. Risk register
4. Focused solutions
5. Track record
© 2011 Tom Sant
Pre-Proposal Checklist
Before we begin…
• Qualified?
• Decision making process understood?
• Key buying influences identified?
• RFP tailored to our favor?
• Competitors known?
© 2011 Tom Sant
Analyzing an RFP
Three steps:1. Review the RFP
2. Clarify the technical requirements
3. Kick off the project
© 2011 Tom Sant
Step 1: Review
Burst the RFP contents, separating it into:• Administrative information• Legal requirements• Format guidelines• Content requirements
Reorganize the RFP if necessaryBut answer the questions in the same order they appear in the RFP.
© 2011 Tom Sant
Step 2: Clarify
List any areas of amiguityDefine the terminology
• Jargon• Organizational names or relationhip• Technical terms
Highlight requirements you cannot meetCreate a list of additional information you need
But don’t give too much away at the bidders’ conference
© 2011 Tom Sant
Step 3: Seven Client-Centered Questions
1. Client’s problem, issues?2. Why is it a problem?3. Desired outcomes?
© 2011 Tom Sant
Four Areas of Goals
Strategic•Budgetary compliance•Profit improvement•Downsizing•Mergers / acquisitions•Market share•Reduced risk•Better clinical outcomes
© 2011 Tom Sant
Four Areas of Goals
Strategic•Budgetary compliance•Profit improvement•Downsizing•Mergers / acquisitions•Market share•Reduced risk•Better clinical outcomes
Tactical• Introducing best
practices• Adding flexibility• Improving QC
© 2011 Tom Sant
Four Areas of Goals
Strategic•Budgetary compliance•Profit improvement•Downsizing•Mergers / acquisitions•Market share•Reduced risk•Better clinical outcomes
Tactical• Introducing best
practices• Adding flexibility• Improving QC
Political• Internal
- Improve morale-Reduce absenteeism-Decrease turnover
•External-Gain public support-Win approval-Enhance recognition
© 2011 Tom Sant
Four Areas of Goals
Strategic•Budgetary compliance•Profit improvement•Downsizing•Mergers / acquisitions•Market share•Reduced risk•Better clinical outcomes
Tactical• Introducing best
practices• Adding flexibility• Improving QC
Political• Internal
- Improve morale-Reduce absenteeism-Decrease turnover
•External-Gain public support-Win approval-Enhance recognition
Individual
goals
© 2011 Tom Sant
Seven Client-Centered Questions
1. Client’s problem, issues?2. Why is it a problem?3. Desired outcomes?4. Most important?
5. Potential solutions?6. Probable results?7. Why are we the right
choice?
© 2011 Tom Sant
Questions 1 and 2:Needs: Define Your Customer’s Concerns
Financial issuesMaximizing ROIReducing labor costsReducing operating costsEliminating production bottlenecks
Schedule issues• Reducing time to market• Reducing design and test
time• Reducing manufacturing
set-up time
Quality issues• Meeting product
specifications• Maximizing product quality• Gaining a competitive
product advantageRisk minimization issues• Mitigating tool obsolescence• Mitigating skills obsolescence• Maximizing tool availability
Productivity issues• Increasing the
productivity of a geographically distributed work group
• Ensuring proper test or tool capabilities
© 2011 Tom Sant
Common Pitfalls
1. Your need = my solution (the lazy way out)
2. One and done (chase the chain of pain)
3. Leaning on the RFP (call Gotheberg)
4. Sticking with your friends (seek diversity)
© 2011 Tom Sant
Questions 1 and 2:Uncover Client Needs
How effective are the following need statements?
When your physicians and other clinicians are buried medical records, they are not spending
time with their patients. This is a quality of care issue that you can address by delivering medical
data automatically to the desktop or to their handheld device.
© 2011 Tom Sant
Questions 1 and 2:Uncover Client Needs
How effective are the following need statements?
Based on our recent discussions, you indicated that you need an improved relationship with your
bank.
© 2011 Tom Sant
Questions 1 and 2:Uncover Client Needs
How effective are the following need statements?
Rising Sun Residential Treatment Center needs a line of credit to help with your expansion plans.
© 2011 Tom Sant
Questions 1 and 2:Uncover Client Needs
How effective are the following need statements?
From our meeting we understand that your goal for 2011 is to reduce the cost of maintaining your network and to decrease network downtime.
You also want to have a predictable cost model in place and would to disengage from the
challenges associated with managing multiple providers.
© 2011 Tom Sant
Questions 1 and 2:Uncover Client Needs
How effective are the following need statements?
Based on our recent meetings, we understand that Transocean needs to reduce the costs of
providing communications to your operators globally.
© 2011 Tom Sant
Questions 1 and 2:Uncover Client Needs
How effective are the following need statements?
The attached proposal addresses the City of Smallville’s need for an updated financial management system. Unfortunately, your
current system is no longer capable of meeting the county’s basic functional needs. It’s an old system running on
mainframe technology, giving the City unreliable performance and incurring high maintenance costs that are likely to go even
higher in coming months and years. Complicating matters further, there is no upgrade option available for this system.
© 2011 Tom Sant
Questions 1 and 2:Uncover Client Needs
How effective are the following need statements?
You have clearly identified cost reductions as a key requirement in your RFP. Reducing paperwork,
streamlining operations, and increasing operational efficiency are all important aspects of your specific needs as outlined in the RFP.
© 2011 Tom Sant
Questions 1 and 2:Uncover Client Needs
How effective are the following need statements?
Rush Industries has no employee handbook and no policy, training or remedy for sexual
harrassment.
© 2011 Tom Sant
Questions 1 and 2:Uncover Client Needs
Three ways to uncover needs:
1. Ask the clientOr those with insight into the client
2. Do your research25 minutes to insight
3. Look at the comparablesDraw on your firm’s past experience
© 2011 Tom Sant
Peeling the Onion: The Five Why’s
Use the Six Sigma approach:Ask 5 consecutive “Why” questions Look for root causes and core problems
Don’t accept the obvious or superficial.
© 2011 Tom Sant
Uncover Client Needs: Ask like a Therapist
“This is the most unusual sales call I’ve ever experienced.”
The Process
1. Ask an open-ended, nonjudgmental question.
2. Feedback what you hear as accurately as possible.
3. Ask: Do I have it right? Is there more?
4. Validate.
© 2011 Tom Sant
Open-Ended Questions
• What are your key objectives or initiatives?
• What problems or gaps in capability are impeding your organizational success?
• Who is affected by this problem?
• What happens if the problems are not resolved?
© 2011 Tom Sant
Research the Client’s Needs
The benefits of good research:• Builds and maintains rapport• Provides insight for strategy and win themes• Makes it easy to personalize the proposal• Differentiates you from the competition
The UNC study
© 2011 Tom Sant
Researching Client Needs
Research in 25 minutes or less…1. Search the prospect’s Website2. Look at the financial section of the prospect’s Web site
• Mission statement• Annual reports—especially the 10K documents’ risk section
3. Search for the company on Reuters.com or Hoovers.com• Key competitors• Market position• Press releases
4. Google the names of key executives5. Google key competitors
© 2011 Tom Sant
Researching Public Sector Client Needs
Research in 25 minutes or less…1. Search the program name on Google or another search engine2. Search the funding agency’s Web site
• Mission statement• Annual reports• Key vision documents
3. Search the rest of the prospect’s Web site• Initiatives• Other programs and projects• Press releases
4. Google the names of key executives5. Google key terminology
© 2011 Tom Sant
Uncovering Needs with Comparables
First, identify several similar clients.
Then, ask:1. What did we sell or propose to them?
2. Why did they need it?
3. Why couldn’t they wait?
4. Why couldn’t they do it internally?
© 2011 Tom Sant
Activity 1: Identifying the Most Common Needs
15 minutes
Using the real opportunity you brought to the workshop:
Identify as many needs or business drivers as you can. Use all three methods to identify needs:
1. Insight from questioning the client2. Research via the Web3. Inferences drawn from comparables
© 2011 Tom Sant
Questions 3 & 4: Outcomes
1. Client’s problem, issues?2. Why is it a problem?3. Desired outcomes?4. Most important?
page 32
© 2011 Tom Sant
Identify Customer Outcomes
What is an OUTCOME?
What kinds of value does the client seek?
How will the client measure success?
© 2011 Tom Sant
Common Pitfalls
1. Failing to address outcomes at all.
2. Using generic statements and marketing fluff.
© 2011 Tom Sant
Best of breedLeading edgeState of the artCompellingQuality focusedUniquely qualifiedInnovativeHighly available
High performanceCommitment to excellenceSynergyUser friendlyIntegratedPartnershipSeamlessRobust
You’ve seen this stuff before…
© 2011 Tom Sant
Fluff!
Our team understands a successful deployment is tied closely to a thoughtful, comprehensive implementation process and we take pride in our rapid, accurate, seamless implementation and integration services. Our services encompass award-winning implementation, training, and consultative services to support optimal outcomes.
© 2011 Tom Sant
Fluff!
Our team understands a successful deployment is tied closely to a thoughtful, comprehensiveimplementation process and we take pride in our rapid, accurate, seamless implementation and integration services. Our services encompass award-winning implementation, training, and consultative services to support optimal outcomes.
© 2011 Tom Sant
Still More Fluff!
Several of your stake holders have witnessed our alignment to your business needs and the agility of our skillset utilization to produce quality end results in desired time frames. As the people within our organizations work together, learning from mistakes and sustaining success translates into efficiency and cost savings. This growing relationship and understanding allows us to introduce new cost incentives into our menu of contracting models.
© 2011 Tom Sant
Common Mistakes
1. Failing to address outcomes at all.
2. Using generic statements and marketing fluff.
3. Limiting your proposal to just one type of outcome.
© 2011 Tom Sant
Four Areas of Goals
Strategic•Budgetary compliance•Profit improvement•Downsizing•Mergers / acquisitions•Market share•Reduced risk•Better clinical outcomes
Tactical• Introducing best
practices• Adding flexibility• Improving QC
Political• Internal
- Improve morale-Reduce absenteeism-Decrease turnover
•External-Gain public support-Win approval-Enhance recognition
Individual
goals
p. 33
© 2011 Tom Sant
Common Mistakes
1. Failing to address outcomes at all.
2. Using generic statements and marketing fluff.3. Limiting your proposal to just one type of
outcome.4. Not asking enough specific questions or doing
enough research to get baseline metrics.5. Making assumptions about what the client
wants.
© 2011 Tom Sant
Keys to Relevant Outcomes
Effective results/outcomes meet four criteria:1. Measurable or quantifiable2. Organizational3. Results linked to your recommendations
– Improving– Fixing– Implementing
4. Proportional to the cost of your solution
© 2011 Tom Sant
Questions to Uncover Desired Outcomes
How will you measure success?Who will benefit from this project?How did you evaluate similar projects in the past?Do you have any specific key performance
indicators for this project?How will you communicate success to others?Do you have benchmark data? Are you looking for a specific ROI?Are you focused on regulatory compliance?
p. 35
© 2011 Tom Sant
Solutions
1. Client’s problem, issues?2. Why is it a problem?3. Desired outcomes?4. Most important?
5. Potential solutions?6. Probable results?
© 2011 Tom Sant
Minimize the Risk of Saying YES
Offer the right solution.Analyze the full range of potential solutions.
Common mistakes:1. Informing rather than persuading2. Selling more than the customer wants3. Not selling the whole solution4. Not making it easy to say “Yes”
© 2011 Tom Sant
High-Level Solution Recommendation
Recommend the solution in a single sentence—focus on the functional aspects and on business fit.
Explain the recommendation in another sentence—
focus on execution.
Differentiate your recommendation—focus on value
page 38
© 2011 Tom Sant
Provide an Integrated Solution DescriptionIntroduction / positioning statement
Brief overview of the product or service
Proof it will deliver
Benefit of the feature
First solution feature
Customer’s problem or need
Proof it will deliver
Benefit of the feature
First solution feature
Customer’s problem or need
Proof it will deliver
Benefit of the feature
First solution feature
Customer’s problem or need
Transition to more detailed technical content
© 2011 Tom Sant
Question 7: Why you?
1. Client’s problem, issues?2. Why is it a problem?3. Desired outcomes?4. Most important?
5. Potential solutions?6. Probable results?7. Why are we the right
choice?
© 2011 Tom Sant
Common Mistakes in Differentiating
1. Not including any differentiators at all.• Without differentiators, it’s a commodity.
2. Using generic differentiators and random lists.• Generic value has no value.
3. Substituting marketing fluff.• No marketing fluff!
© 2011 Tom Sant
Weak Value Messages Have No Impact
How effective is this?
We offer a full range of enterprise-strength, integrated
technology solutions.
© 2011 Tom Sant
Does this make you want to say YES?
We are a true one-stop shop for all your information management
needs.
© 2011 Tom Sant
How do you like me now?
We enable the people-ready business with leading edge
solutions and world-class service.
© 2011 Tom Sant
Differentiators Proof
ValueProposition
Value That Has Value.
What you do that no one else does. What you do differently from anyone else.
Verifiable claims you make about yourself. Claims your clients make about you.Third-party evidence.
Communicating Value That Has Value
© 2011 Tom Sant
Effective Kickoff Meetings
1. Review relevant background information2. Provide insight into the client and their business
situation3. Consider the solution4. Agree on the value proposition5. Brainstorm for differentiators and evidence6. Create a cognitive web7. Write the executive summary
© 2011 Tom Sant
The Cognitive Webbing Process
First: Identify the end result the customer seeks
Second: Brainstorm ideas, observations, facts, details, insights, comparisons, opinions, etc.
Third: Apply structure• Use the NOSE pattern to structure the basic
content• Use the customer’s priorities to structure within
each category
© 2011 Tom Sant
Seven High-Performance Questions
1. Client’s problem, issues?2. Why is it a problem?3. Desired outcomes?4. Most important?
5. Potential solutions?6. Probable results?7. Why is Thomson
Reuters the right choice?
p. 61
© 2011 Tom Sant
Needs
Outcomes
Why Exel
Leverage regional facilities –domestic and international
How we commercialize our services
Put our money where our mouth is
Bench strength
Cost Reduction/ Increase Profitability
Reduce Inventory while eliminating stock-outs
Increase end customer service to drive sales
Effectively manage product flow and extended supply chain
Increase of breadth of product on shelves
Growth into new markets
Increased customer satisfaction
Keeping pace with growth
Reduce Costs and working capital
Increase fill rates
Improve service quality by managing product flow
Visibility
Increased Responsiveness (Demand)
On time Delivery
Packaging, size, quantity
Standardized returns process
Increased Consistency Flexibility
to meet promotional/ seasonal activities
Domestic
International
Product available when needed
Flexibility in responding to demand
Decreased inventory levels
Better control
One touch point for transportation and handling
New Products
Existing ProductsReduce
customer turnover rates
Reduction of stock outs
Increased inventory turns
Manage reverse logistics
case studies, biographies, references
Have the resources to support growth globally
B
C
A
B
C
E
D
C
B
A
Effectively manage an extended supply chain
Visibility
Increase speed in crediting retailer
Seasonal Changes
Reduce number of store deliveries
Service Quality
Little intervention
Product OS&D
Activity Based Costing Customer
loyalty
Better Asset Management
Reduced Fixed Assests
Reallocate cash
Information management
Stock Outs
Experience managing extended supply chain
Experience in re-designing end-to-end supply chain solutions
Innovative supply chain solution design -examples
Effectively Managed Product Returns
A
E
F
G
D
C
DHome Depot will reduce costs while achieving customer service levels through a shared used manufacturer integrated solution managed by Exel.
Home DepotWill reduce costs while supporting customer service levels through a
shared use manufacturer integrated solution managed by Exel
© 2011 Tom Sant
Home DepotWill reduce costs while supporting customer service levels through a shared use manufacturer integrated solution managed by Exel
Needs Outcomes
Why Exel
Leverage regional facilities –domestic and international
How we commercialize our services
Put our money where our mouth is
Bench strength
Cost Reduction/ Increase Profitability
Reduce Inventory while eliminating stock-outs
Increase end customer service to drive sales
Effectively manage product flow and extended supply chain
Increase of breadth of product on shelves
Growth into new markets
Increased customer satisfaction
Keeping pace with growth
Reduce Costs and working capital
Increase fill rates
Improve service quality by managing product flow
Visibility
Increased Responsiveness (Demand)
On time Delivery
Packaging, size, quantity
Standardized returns process
Increased Consistency
Flexibility to meet promotional/ seasonal activities
Domestic
International
Product available when needed
Flexibility in responding to demand
Decreased inventory levels
Better control
One touch point for transportation and handling
New Products
Existing ProductsReduce
customer turnover rates
Reduction of stock outs
Increased inventory turns
Manage reverse logistics
case studies, biographies, references
Have the resources to support growth globally
A
B
C
E
D
C
B
A
Effectively manage an extended supply chain
Visibility
Increase speed in crediting retailer
Seasonal Changes
Reduce number of store deliveries
Service Quality
Little intervention
Product OS&D
Order Accuracy
Activity Based Costing
Customer loyalty
Better Asset Management
Reduced Fixed Assests
Reallocate cash
Information management
Stock Outs
Experience managing extended supply chain
Experience in re-designing end-to-end supply chain solutions
Innovative supply chain solution design -examples
Effectively Managed Product Returns
Vendor Compliance
C
D
© 2011 Tom Sant
Cost Reduction/ Increase Profitability
Home DepotWill reduce costs while supporting customer service levels through a shared use manufacturer integrated solution managed by Exel
Needs Outcomes
Reduce Inventory while eliminating stock-outs
Increase end customer service to drive sales
Effectively manage product flow and extended supply chain
Increase of breadth of product on shelves
Growth into new markets
Increased customer satisfaction
Keeping pace with growth
Reduce Costs and working capital
Increase fill rates
Improve service quality by managing product flow
VisibilityReliability
Increased Responsiveness (Demand)
On time Delivery
Packaging, size, quantity
Standardized returns process
Increased Consistency Flexibility
to meet promotional/ seasonal activities
Domestic
International
Product available when needed
Flexibility in responding to demand
Decreased inventory levels
Better control
One touch point for transportation and handling
New Products
Existing ProductsReduce
customer turnover rates
Reduction of stock outs
Increased inventory turns
Manage reverse logistics
Effectively manage an extended supply chain
Visibility
Increase speed in crediting retailer
Seasonal Changes
Reduce number of store deliveries
Service Quality
Little intervention
Product OS&D
Order Accuracy
Activity Based Costing Customer
loyalty
Better Asset Management
Reduced Fixed Assests
Reallocate cash
Information management
Stock Outs
Having seasonal & promotional products at the right store at right time
Effectively Managed Product Returns
Vendor Compliance
© 2011 Tom Sant
Cost Reduction/ Increase Profitability
Home DepotWill reduce costs while supporting customer service levels through a shared use manufacturer integrated solution managed by Exel
Solution
Needs Outcomes
Reduce Inventory while eliminating stock-outs
Increase end customer service to drive sales
Effectively manage product flow and extended supply chain
Increase of breadth of product on shelves
Growth into new markets
Increased customer satisfaction
Keeping pace with growth
Reduce Costs and working capital
Increase fill rates
Improve service quality by managing product flow
VisibilityReliability
Increased Responsiveness (Demand)
On time Delivery
Packaging, size, quantity
Standardized returns process
Increased Consistency Flexibility
to meet promotional/ seasonal activities
Domestic
International
Product available when needed
Flexibility in responding to demand
Decreased inventory levels
Better control
One touch point for transportation and handling
New Products
Existing ProductsReduce
customer turnover rates
Reduction of stock outs
Increased inventory turns
Manage reverse logistics
Effectively manage an extended supply chain
Visibility
Increase speed in crediting retailer
Seasonal Changes
Reduce number of store deliveries
Service Quality
Little intervention
Product OS&D
Order Accuracy
Activity Based Costing Customer
loyalty
Better Asset Management
Reduced Fixed Assests
Reallocate cash
Information management
Stock Outs
Having seasonal & promotional products at the right store at right time
Effectively Managed Product Returns
Vendor Compliance
© 2011 Tom Sant
Cost Reduction/ Increase Profitability
Home DepotWill reduce costs while supporting customer service levels through a shared use manufacturer integrated solution managed by Exel
Solution
Needs Outcomes
Why Exel
Leverage regional facilities –domestic and international
How we commercialize our services
Put our money where our mouth is
Bench strength
Reduce Inventory while eliminating stock-outs
Increase end customer service to drive sales
Effectively manage product flow and extended supply chain
Increase of breadth of product on shelves
Growth into new markets
Increased customer satisfaction
Keeping pace with growth
Reduce Costs and working capital
Increase fill rates
Improve service quality by managing product flow
VisibilityReliability
Increased Responsiveness (Demand)
On time Delivery
Packaging, size, quantity
Standardized returns process
Increased Consistency Flexibility
to meet promotional/ seasonal activities
Domestic
International
Product available when needed
Flexibility in responding to demand
Decreased inventory levels
Better control
One touch point for transportation and handling
New Products
Existing ProductsReduce
customer turnover rates
Reduction of stock outs
Increased inventory turns
Manage reverse logistics
case studies, biographies, references
Have the resources to support growth globally
C
Effectively manage an extended supply chain
Visibility
Increase speed in crediting retailer
Seasonal Changes
Reduce number of store deliveries
Service Quality
Little intervention
Product OS&D
Order Accuracy
Activity Based Costing
Customer loyalty
Better Asset Management
Reduced Fixed Assests
Reallocate cash
Information management
Stock Outs
Having seasonal & promotional products at the right store at right time
Experience managing extended supply chain
Experience in re-designing end-to-end supply chain solutions
Innovative supply chain solution design -examples
Effectively Managed Product Returns
Vendor Compliance
© 2011 Tom Sant
Cost Reduction/ Increase Profitability
Home DepotWill reduce costs while supporting customer service levels through a shared use manufacturer integrated solution managed by Exel
Needs Outcomes
Why Exel
Leverage regional facilities –domestic and international
How we commercialize our services
Put our money where our mouth is
Bench strength
Reduce Inventory while eliminating stock-outs
Increase end customer service to drive sales
Effectively manage product flow and extended supply chain
Increase of breadth of product on shelves
Growth into new markets
Increased customer satisfaction
Keeping pace with growth
Reduce Costs and working capital
Increase fill rates
Improve service quality by managing product flow
Visibility
Increased Responsiveness (Demand)
On time Delivery
Packaging, size, quantity
Standardized returns process
Increased Consistency
Flexibility to meet promotional/ seasonal activities
Domestic
International
Product available when needed
Flexibility in responding to demand
Decreased inventory levels
Better control
One touch point for transportation and handling
New Products
Existing ProductsReduce
customer turnover rates
Reduction of stock outs
Increased inventory turns
Manage reverse logistics
case studies, biographies, references
Have the resources to support growth globally
B
C
A
B
C
E
D
C
B
A
Effectively manage an extended supply chain
Visibility
Increase speed in crediting retailer
Seasonal Changes
Reduce number of store deliveries
Service Quality
Little intervention
Product OS&D
Order Accuracy
Activity Based Costing
Customer loyalty
Better Asset Management
Reduced Fixed Assests
Reallocate cash
Information management
Stock Outs
Experience managing extended supply chain
Experience in re-designing end-to-end supply chain solutions
Innovative supply chain solution design -examples
Effectively Managed Product Returns
A
E
F
G
Vendor Compliance
D
C
D
Now…
Prioritize the content in order of importance to the decision maker.
© 2011 Tom Sant
Home DepotWill reduce costs while supporting customer service levels through a shared use manufacturer integrated solution managed by Exel
Needs Outcomes
Cost Reduction/ Increase Profitability
Reduce Inventory while eliminating stock-outs
Increase end customer service to drive sales
Effectively manage product flow and extended supply chain
Increase of breadth of product on shelves
Growth into new markets
Increased customer satisfaction
Keeping pace with growth
Reduce Costs and working capital
Increase fill rates
Improve service quality by managing product flow
VisibilityReliability
Increased Responsiveness (Demand)
On time Delivery
Packaging, size, quantity
Standardized returns process
Increased Consistency Flexibility
to meet promotional/ seasonal activities
Domestic
International
Product available when needed
Flexibility in responding to demand
Decreased inventory levels
Better control
One touch point for transportation and handling
New Products
Existing ProductsReduce
customer turnover rates
Reduction of stock outs
Increased inventory turns
Manage reverse logistics
B
C
A
B
C
EEffectively manage an extended supply chain
Visibility
Increase speed in crediting retailer
Seasonal Changes
Reduce number of store deliveries
Service Quality
Little intervention
Product OS&D
Order Accuracy
Activity Based Costing Customer
loyalty
Better Asset Management
Reduced Fixed Assests
Reallocate cash
Information management
Stock Outs
Having seasonal & promotional products at the right store at right time
Effectively Managed Product Returns
A
E
F
G
Vendor Compliance
D
D
© 2011 Tom Sant
Home DepotWill reduce costs while supporting customer service levels through a shared use manufacturer integrated solution managed by Exel
Solution
Needs Outcomes
Cost Reduction/ Increase Profitability
Reduce Inventory while eliminating stock-outs
Increase end customer service to drive sales
Effectively manage product flow and extended supply chain
Increase of breadth of product on shelves
Growth into new markets
Increased customer satisfaction
Keeping pace with growth
Reduce Costs and working capital
Increase fill rates
Improve service quality by managing product flow
VisibilityReliability
Increased Responsiveness (Demand)
On time Delivery
Packaging, size, quantity
Standardized returns process
Increased Consistency Flexibility
to meet promotional/ seasonal activities
Domestic
International
Product available when needed
Flexibility in responding to demand
Decreased inventory levels
Better control
One touch point for transportation and handling
New Products
Existing ProductsReduce
customer turnover rates
Reduction of stock outs
Increased inventory turns
Manage reverse logistics
B
C
A
B
C
EEffectively manage an extended supply chain
Visibility
Increase speed in crediting retailer
Seasonal Changes
Reduce number of store deliveries
Service Quality
Little intervention
Product OS&D
Order Accuracy
Activity Based Costing Customer
loyalty
Better Asset Management
Reduced Fixed Assests
Reallocate cash
Information management
Stock Outs
Having seasonal & promotional products at the right store at right time
Effectively Managed Product Returns
A
E
F
G
Vendor Compliance
D
D
© 2011 Tom Sant
Home DepotWill reduce costs while supporting customer service levels through a shared use manufacturer integrated solution managed by Exel
Solution
Needs Outcomes
Why Exel
Leverage regional facilities –domestic and international
How we commercialize our services
Put our money where our mouth is
Bench strength
Cost Reduction/ Increase Profitability
Reduce Inventory while eliminating stock-outs
Increase end customer service to drive sales
Effectively manage product flow and extended supply chain
Increase of breadth of product on shelves
Growth into new markets
Increased customer satisfaction
Keeping pace with growth
Reduce Costs and working capital
Increase fill rates
Improve service quality by managing product flow
VisibilityReliability
Increased Responsiveness (Demand)
On time Delivery
Packaging, size, quantity
Standardized returns process
Increased Consistency Flexibility
to meet promotional/ seasonal activities
Domestic
International
Product available when needed
Flexibility in responding to demand
Decreased inventory levels
Better control
One touch point for transportation and handling
New Products
Existing ProductsReduce
customer turnover rates
Reduction of stock outs
Increased inventory turns
Manage reverse logistics
case studies, biographies, references
Have the resources to support growth globally
B
C
A
B
C
E
D
C
B
A
Effectively manage an extended supply chain
Visibility
Increase speed in crediting retailer
Seasonal Changes
Reduce number of store deliveries
Service Quality
Little intervention
Product OS&D
Order Accuracy
Activity Based Costing Customer
loyalty
Better Asset Management
Reduced Fixed Assests
Reallocate cash
Information management
Stock Outs
Having seasonal & promotional products at the right store at right time
Experience managing extended supply chain
Experience in re-designing end-to-end supply chain solutions
Innovative supply chain solution design -examples
Effectively Managed Product Returns
A
E
F
G
Vendor Compliance
D
C
D
© 2011 Tom Sant
Issues, NeedsIncrease end-customer service to drive salesCost reduction / increased profitability
Reduce number of store deliveriesOne touch-point for transportation and handlingActivity-based costingBetter asset managementReduce inventory while eliminating stock outs
Effectively manage product flow and extended supply chainIncreased responsiveness (demand)On-time deliveryVisibilitySeasonal changesIncreased consistency
Service qualityLittle interventionProduct OS&DVendor complianceOrder accuracy
Effectively managed product returnsPackaging, size, quantityStandardized returns processIncrease speed in crediting retailers
Growth into new marketsDomesticInternational
Increase breadth of product on shelves***Flexibility to meet promotional/seasonal activities
© 2011 Tom Sant
Outcomes, Areas of ImpactIncreased customer satisfaction
1. Product available when needed2. Customer loyalty3. Reduce customer turnover rates
Reduce costs and working capital1. Reallocate cash2. Increased inventory turns3. Reduced fixed assets4. Reduction of stock outs5. Decreased inventory levels
Improve service quality by managing product flow1. Reliability 2. Visibility 3. Manage reverse logistics4. Flexibility in responding to demand5. Increase fill rates6. Stock outs7. Information management
Having seasonal and promotional products in the right store at the right timeKeeping pace with growth
1. New products2. Existing products
Better control
© 2011 Tom Sant
Solution Presentation
Overview of the solution
How will it be presented to Home Depot?
How will it be presented to suppliers?
p. 64
© 2011 Tom Sant
Why Exel?
Capacity Have the resources to support growth globally
Leverage regional facilities —domestic and international
Experience in redesigning end-to-end supply chain solutions Innovative supply chain solution design
--Examples
How we commercialize our services Put our money where our mouth is
Experience managing extended supply chain Case studies, bios, references