What Is Automated Quotation Creation?
The manufacturing industry, historically focused on efficiency improvements on the manufacturing floor, now recognizes the potential for significant productivity and workflow enhancements in the sales department. Automated quotation creation has emerged as a key driver for these improvements.
These systems employ AI and other tools to automatically calculate prices and format quotations, addressing inefficiencies in traditional, experience-based quotation processes often undertaken by various levels of staff, including executives.
Automated quotation systems have been developed to address issues such as high-cost quotes and administrative overload on senior staff, hindering future planning and execution.
Key types of automated quotation systems include:
- Systems that generate quotes based on past machining results.
- Systems that calculate quotes by inputting machining information into drawing feature elements.
Uses of Automated Quotation Creation
Automated quotation systems replace human experience with AI or logic-based algorithms for quoting manufacturing drawings. This standardizes drawing processes and expedites budgeting, benefiting various industry players, from parts suppliers to large clients and trading companies.
Primary applications span multiple sectors:
Industry
- Major manufacturers, assembly manufacturers, and parts and material trading companies – Similar drawing searches.
- Small and medium-sized parts manufacturers – Automatic quotations.
Main Machining Processes in Automatic Quotation
- Machining and lathe work.
- Sheet metal processing.
- Surface treatment.
- Injection molding.
Main Target Fields
- Industrial machinery.
- Vehicles.
- Semiconductor.
- Home appliances, OA.
- Medical.
- Aerospace.
One type of automated quotation system specializes in quote generation with a user-friendly interface, enabling easy and accurate quotations by anyone. Cloud-based management enhances the flow from creation to confirmation.
The other, integrated with ERP, links quotation creation with production and business systems, facilitating communication across departments.
Some systems combine both functionalities, particularly benefiting the manufacturing sector by lowering costs and focusing on core tasks.
Automated systems reduce communication costs compared to traditional methods like fax, ensuring prompt, error-free price transmission via cloud-based management and electronic commerce.
Principles of Automated Quotation Creation
Automated quotation systems generally employ two calculation methods:
- Calculation based on past machining results.
- Calculation by inputting machining information into drawing feature elements.
Systems based on past results become increasingly accurate with AI learning, covering most estimates. They offer easy and quick estimation, but may initially lack precision until a sufficient database is built.
The second type, requiring more skill and time due to detailed process calculations, provides high accuracy from the onset.
Both systems should be chosen based on their alignment with a company’s fundamental sales challenges.
Key information for automated quotation includes quotation number, creation date, expiration date, customer name, product unit price, total amount, and past performance data. Additional data varies depending on the system type, with cloud-based systems offering mobile access and training opportunities.
Security considerations are crucial, especially for cloud-managed systems.
Advantages of Automated Quotation Creation
1. Focus on Human Resource Development
Automating quotations frees up time for staff training and knowledge sharing, eliminating reliance on specific individuals for quotation tasks.
2. Improvement of Quotation Accuracy
Systems using past data and AI learning provide more accurate estimates, enabling even novices to create precise quotations.
3. Strengthen Sales and Product Development
EDI-equipped systems help understand product and personnel performance, aiding in resource allocation and informing strategic decisions.
Benefits of Automated Quotation Creation
Automated quotation creation offers diverse benefits across various company roles:
Sales Employee Perspective
- Reduction in manpower shortages.
- Decrease in overtime.
- Increased rate of productive work.
Sales Manager Perspective
- Quicker quotation responses.
- Consistency in quotations.
- Enhanced sales analysis.
Management Perspective
- Cost reduction.
- Improved employee satisfaction, aiding recruitment.
Competitive Advantage
- Increasing order acceptance by providing faster quotations than competitors.
- Reducing labor and SG & A costs through efficient quotation processes.
- Accumulating data for accurate pricing, further enhanced by AI learning.
- Simplifying quotation creation and submission processes, allowing focus on primary tasks.