Current State Value Stream Mapping For Sales Conversion PT

Current State Value Stream Mapping for Sales Conversion PT = 3.5 hrs LT = 4 wks 2 hrs 2 wks 3.5 hrs 4 wks a PT = 2 hrs LT = 2 wks Sales Technical Pricers Review Standard Bid PT = 20 min LT = 1 hr 6b Pricers Sales PT = 3 hrs LT = 3 hrs Sales Sales PT = 2 hrs LT = 2 hrs PT = 4 hrs LT = 3 wks Sales hrs 2 hrs 3 hrs 1 wk 3 hrs 3 hrs 4 hrs 3 wks Current State Metrics for Sales Conversion Overview of the Process The Sales Conversion Process begins with contact with the customer and includes the activities to understand their requirements, present a solution (both in concept and to prove out), provide pricing proposals through to procuring the software and executing a PO. The Sales Process has not been traditionally included when mapping operations within an organization; thus, there are no defined metrics for the steps of the process. The PT and LT times shown are anecdotal and should be more formally assessed by “going to the gemba.†Challenges As a workforce, Sales reps are likely one of the hardest groups to map as many Sales Reps would argue that what they do is more art than science. Typically, Sales Reps have not been required to account for their time to any detail. This makes the Sales Process challenging in that there have not been any true time studies to use a foundation. The Sales Process needs to be studied at the process level, not at an individual customer level. There are categories of waste within the areas of waiting, extra processing, correction, etc. Much of the process is manual, and likely to continue to be manual, which means you are relying on human action which is prone to error, distraction, etc. This is further support to study in detail. Variability is a third challenge. The variability across reps (personalities and skills), customers, industries, and geographic locations makes it harder to determine what is value add and what is wasteful which will be critical in establishing a process on a large, repeatable scale. There is also variability in the execution of the process (what steps are taken, in what order, etc.) which causes variability in the process times. Bottlenecks Within Sales, the customer is heavily involved. There is a lot of external wait time spent waiting for the customer to respond, be available, etc. As an example, the Meeting noted is on average 2 hours; however, the elapsed time is 2 weeks. This time is waiting for the customer to respond and to find available time on their calendar that matches your own. Another example is the procurement process. At this point, the Sales Rep is waiting for the customer to complete their own procurement process. These are not controllable within the Sales Process and therefore contributes to the longer lead times. The primary internal bottleneck has to do with the quote/proposal generation which is a very manual process. The Sales Rep creates the quote, submits it to a Pricer and then the Pricer reviews it to make sure that it meets specifications. If there is inaccurate or missing information, he will return the quote to be fixed. If not, he will process it and the quote will be generated and sent to the rep for customer delivery. For a pricer, the review can be as little as 10 minutes to days of back and forth with the Rep. There is variability in the types of bids being reviewed as well as volume due to time (end of month, end of quarter, etc.). It is not uncommon to have over 10 bids in their queue at a time and frequently working 3-5 bids at the same time. This is an area that contributes to the long delays but also is an area that could benefit from analysis to determine value add vs. wasteful steps. Current State Highlights image1.png image2.jpg image3.png

Paper For Above instruction

The comprehensive analysis of the current state value stream mapping for sales conversion reveals multifaceted challenges and inefficiencies that hinder the swift and effective progression of sales processes within the organization. The process, which begins at customer contact and extends to the execution of purchase orders, encompasses numerous activities that are must be streamlined for better performance and customer satisfaction. This essay explores the current process overview, identifies primary challenges, analyzes specific bottlenecks, and discusses potential strategies for improvement grounded in lean principles and operational best practices.

Introduction

The sales conversion process plays a vital role in revenue generation, yet it remains often overlooked in holistic operational mapping. The described process involves initial contact with customers, understanding requirements, presenting solutions, providing pricing proposals, and finally executing procurement steps. Traditionally, organizations have lacked detailed measurements of these stages, resulting in anecdotal times that do not reflect actual efficiency. As a result, understanding and improving this process requires a thorough analysis of current state mapping, identification of delays, and implementation of targeted interventions.

Current Process and Metrics

The current state indicates that the sales process involves multiple manual and time-consuming steps. Contact with customers and understanding their needs involves waiting periods that are external to sales' control, such as customer response times and procurement delays. For instance, meetings averaging only two hours can take up to two weeks due to scheduling conflicts, demonstrating significant external wait times. Similarly, internal bottlenecks like quote and proposal generation are notably labor-intensive. Sales representatives create quotes that are reviewed by pricers, with the review process varying from ten minutes to several days depending on the volume and complexity of bids. The process includes handling multiple bids simultaneously, which adds to delays and inefficiencies.

Challenges in the Sales Process

One of the chief challenges in mapping and improving the sales process lies in the nature of sales activities, which many perceive as more art than science. This perception leads to a lack of detailed time tracking and metrics, which are essential for identifying waste and opportunities for improvement. Additionally, the variability across sales personnel, customer industries, and geographic regions creates complexity in standardizing processes and distinguishing between value-adding activities and waste. Human factors such as distraction, errors in manual entry, and inconsistent procedures further compound the challenge. The manual process of quote generation, in particular, is prone to error and delays, necessitating a focus on automation and standardization where feasible.

Bottlenecks and External Delays

The most prominent bottleneck involves waiting for customer responses during meetings and procurement activities. Customer response times, which average two hours per meeting, translate into delays of up to two weeks due to calendar coordination and response lag. Such external factors are outside the direct control of the sales team but significantly impact lead times and sales cycle durations. Internally, the quote and proposal review process remains a critical bottleneck, often involving multiple iterations that consume substantial time and resources. The review process's variability depends on bid complexity and workload, with some bids taking days to review, especially when multiple bids are handled simultaneously. Managing volume and improving review efficiency are crucial challenges that could benefit from lean tools such as value stream mapping, standardized work, and automation.

Strategies for Improvement

Addressing these issues involves a comprehensive approach grounded in Lean principles. First, implementing a more detailed and standardized process flow can help reduce variability and waste. Using tools like value stream mapping, organizations can visualize delays and identify non-value-adding steps, particularly focusing on manual review processes and waiting periods. Automating quote generation, perhaps through configuration tools or quoting software, can drastically reduce review times and errors. Additionally, establishing clear communication protocols and leveraging customer relationship management (CRM) systems can help manage external wait times more effectively.

Training sales staff on process standardization and emphasizing data collection for metrics can create a cultural shift towards continuous improvement. Regular review meetings to monitor bottleneck progression and implementing proactive measures such as staffing adjustments during peak periods may further optimize the process. Addressing external delays requires better scheduling tools, automated reminders, and possibly pre-qualification of customer responses to minimize waiting. Lastly, integrating sales and procurement functions through digital workflows can streamline procurement delays, facilitating faster response times and reducing overall sales cycle duration.

Conclusion

In conclusion, the current state mapping of the sales conversion process highlights significant opportunities for efficiency gains through detailed analysis, elimination of waste, standardization, and automation. External delays and manual internal processes particularly contribute to prolonged lead times that adversely impact organizational performance. Applying lean methodologies, fostering a culture of continuous improvement, and leveraging technology are essential steps toward building a more responsive, efficient sales process. Future initiatives should focus on capturing accurate data, standardizing activities, and reducing variability to create a scalable and predictable sales operation that can adapt to changing market demands.

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