NKT Go Live: NKT standardises worldwide quotation process
NKT standardises worldwide quotation process with CPQ solution by camos
NKT employs 3,400 people in 24 offices worldwide. The staff plays an important role in the energy supply of the global company - they provide power to the people. As a provider of complete solutions, the company develops, manufactures and sells cables and fittings for energy transport and offers system solutions for power grids and construction projects.
Uniform offer process at all locations
In March 2017, NKT acquired the ABB Group's high-voltage cable business with an enterprise value of 712 million including the associated plant in Sweden. With this acquisition, the branches in Sweden and Germany are the company's two largest.
Sebastian Appel, process engineer for CRM and CPQ, coordinates NKT's project to digitise the quotation process and describes the need for a global standard as follows: ‘The acquisition of the high-voltage cable business of the ABB Group has made our already site-specific processes in the areas of project configuration, costing and bid preparation even more heterogeneous. We now have to bring them together to a common denominator by combining different working worlds, procedures and ways of thinking in one solution and creating a uniform basis for calculation. That is why we decided to introduce a CPQ solution as a cross-location tool for our quotation process. Existing local software solutions and historically grown structures consisting of Excel tables, Word documents and distributed databases are to be replaced without exception by the CPQ introduction.’
Clear quotation process for major projects
Especially for large-scale projects, some of which are in the three-digit million range, the aim is to standardise the bidding process and make it clearer. Such a large-scale project often comprises up to 1,500 configuration elements - including the cable system itself, logistics and installation services, financing, insurance and numerous other project implementation services. One example is the Nord Link project: It enables the exchange of energy between Norway and Germany via a high-voltage direct current connection with a total length of 623 km. Given the large number of different configuration elements and cost items, transparency across the entire offering is very important. At every point throughout the quotation process, it must be clear throughout the company what is planned at what cost and what turnover is necessary to cover costs; every change in the cost calculation must be documented in a comprehensible and justified manner.
Automation for small and medium-sized projects
Sebastian Appel explains that for smaller projects with a project volume of less than 2 million euros, the automation of preparing quotations plays a major role: ‘Customers expect offers of this magnitude within one to two days. Until now, it has always taken a major effort on our part to meet these deadlines. And the cost aspect adds to this. Small projects in particular are often unprofitable if it comes to manual intervention in too many places. With the introduction of the CPQ system, manual steps are to be reduced to a minimum.’
Decision for the CPQ solution by camos
NKT has opted for the CPQ solution by camos. This eliminates data silos and consolidates all processes and data sources into a single application - from project configuration to the complete quotation document. In this new and homogeneous environment, all workflows will also be defined, including substitution rules. Only preconfigured and approved text modules are used when publishing the quotation document in order to limit the manual checking of the quotation documents to those areas that deviate from the standard. The automation in the area of cost and price calculation goes so far that no more manual entries are needed: The sales price is fully automated as a guide value and determined by taking into account the desired contribution margin.
‘As a partner for our cross-location quotation and calculation solution, we chose camos because the CPQ solution already covers a large number of our standard requirements - such as multilingualism, auditability and a very comprehensive set of rules. We also like the fact that modules such as the UI Designer or the Document Designer allow us to create user interfaces and quotation documents without programming knowledge and thus achieve a high degree of standardisation. Moreover, another camos solution has been successfully in use at NKT for over 25 years’, Sebastian Appel explains the reasons for the choice of supplier.