Streamlining the EMS Quote Process

While many areas of electronics manufacturing are feeling recent market downturn, the electronic manufacturing services (EMS) area is booming. Many manufacturers that handled all production in-house are now turning to outsourcing for economic reasons. This makes a highly competitive atmosphere for the EMS. Missing an opportunity because of a slow or inaccurate quoting process can result in millions of dollars lost.

Flextronics Inc. is one of the top EMS companies today. But, only a little over a year ago, it took the company an average of three to four weeks to do a quote. With multiple quote hubs worldwide, it was obvious that this had to change, updating to a software network type program was deemed the ideal.

The software must maintain and update all data pertaining to the quote process: all supplier data, all previous data on any customer's account, and Flextronics internal data required to complete an accurate quote. It also must be relatively easy to learn, teach and network.

Another important point: the process should be able to form an electronic communication chain across all parties sending and receiving data. However, knowing that not every supplier or OEM would always be on the same system, flexibility was an important issue. The software tools had to be able to allow sending and receiving quotes over the Internet in a Web-based process, or just as easily generate automatic fax transmissions to those not set up for electronic data interface (EDI).

The answer to this problem came in an unexpected manner. In April 2000, Dovatron merged with Flextronics. Dovatron already had been using a system for quote and supply chain management called QuoteWin, produced by PolyDyne Software Inc. of Austin, Texas. It met all of the criteria designated by Flextronics and more. Tisha Reed, currently the program manager for QuoteWin, came to Flextronics with Dovatron.

"We started using QuoteWin about four years before the merger," says Reed. "The biggest reason we chose PolyDyne was that they were one of the first to do this in the industry. They have a better handle on eliminating software bugs and developing what customers really want as far as reporting features. Also, our suppliers were increasingly using another PolyDyne software product."

Briefly, QuoteWin automatically assembles all needed information from multiple sources to complete a quote in far less time than the standard process, automating 90 percent of the manual tasks. It also provides multiple comparison and analysis capabilities including forecasts on variations in market conditions.

Reed is pleased with the cost analysis reports she can generate: "I can do analysis to see where my high costs are vs. cost of BOM (bill of materials). This can be very important. The data fills me in on where we really need to be competitive. The software also keeps track of all BOM revisions, which lets me do Rev-Time Analysis. If a customer sends a BOM at Rev-A, and then another at Rev-B, I could see what the changes were and run a report on it. I have never seen that with any other software."

PolyDyne provided the information needed to make internal training successful. A customized set of processes was developed on how Flextronics quotes are made. Training in-house saved money and also allowed the company to train on all areas of their quote process, not just the QuoteWin package.

After the software was installed and put to use, the quote time was reduced by more than half. Pricing can now be accomplished via the database instead of sending RFQs out to suppliers. The software automatically accesses linked supplier databases for updated pricing information. Flextronics can now upload BOMs from the OEMs into the system and then compare applicable pricing from the supplier database (both contract pricing or negotiated pricing).