Here we have a demonstrative example to help guide you through a business case analysis for your Company
Four key metrics are needed to help you assess the impact of SMaRT™ on your organization.
- The total number of Sales Representatives engaged in pre-sales activity, including technical sales support
- Total number of projects bid
- Bid win ratio (number of bids won / total numbers of projects bid)
- Total Sales
Using these metrics we can demonstrate the impact of SMaRT™ on your organization.
The example is based on an industrial manufacturer of custom products that utilizes 60% internally sourced components and 40% externally sourced components and services that need to be integrated into a complete final solution. In addition, a high degree of on-site integration is required.
Impact on sales: |
| Metric |
Example |
20% Time Improvement |
5% Bid Win Improvement |
Total Improvement |
| Number of Sales Reps |
10 |
10 |
10 |
10 |
| Total projects bid |
100 |
120 |
100 |
120 |
| Bid win ratio |
20% |
20% |
25% |
25% |
| Number of projects won |
20 |
24 |
25 |
30 |
| Average sale |
$5,000,000 |
$5,000,000 |
$5,000,000 |
$5,000,000 |
| Total sales |
$100,000,000 |
$120,000,000 |
$125,000,000 |
$150,000,000 |
| Average bid win per Sales Rep |
2 |
2.24 |
2.5 |
2.8 |
| |
|
Impact on fulfillment cost:
|
| Rework expense |
3.00% |
1.00% |
1.00% |
1.00% |
| Lost profit |
$3,000,000 |
$1,120,000 |
$1,250,000 |
$1,400,000 |
Improving the ability of the sales organization to deliver a winning bid 20% sooner and increasing the bid win ratio by 5% results in:
- Over $50M in new revenue
- Upwards of $2M in production costs saved
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Impact on sales
Impact on fulfillment cost
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