Resolved Broken Lead to Cash Implementation at Philips

Client

Philips, One of the World’s Top 5 Medical Devices Companies

  • Sells MRIs, ultrasound machines, pacemakers, x-ray machines, surgical machines, and other similar products.
  • Contracts with multiple group purchasing organizations and integrated delivery networks that supply much-needed equipment to hospitals.

“Speed of quote generation is just one aspect of this solution. Most important part is the confidence the error-free quotes gave our Sales personnel.”

– Business Process Owner, Philips

Background

The customer started by building their own Lead to Cash implementation, consisting of CRM, CLM, CPQ, and Order Management. This implementation functioned incorrectly, frequently producing errors like:

  • Pricing calculations taking over 3 minutes or crashing.
  • Contract entitlement updates taking up to 40 hours.
  • Lag and slowdowns from 15 million price list items choking the system.

Solution Requirement

Philips required a solution that could automate pricing and discount flows, and customize discounts based on GPOs, Order Values, and other criteria.

Business Results of
Lead to Cash Implementation

  • 49% higher proposal volume.
  • Error-free pricing.
  • 360-degree revenue visibility.
  • Ten times faster quoting process.
  • Efficient and accurate financial reconciliation.

Solution Implementation Timeline at Philips

  • 2016: Philips begins their digital transformation journey, intending to build their own implementation.
  • 2018: Philips begins customizing their implementation and incorporating vendors’ products.
  • 2018: Promise delivery of complete implementation within six months.
  • 2020: Drastically exceed six-month deadline, with customization and delivery nowhere near completion.
  • 2020: Approach CommerceCX based on our successful CPQ implementation at JDE Peet’s.

CommerceCX Comes Onboard

After six years of unsuccessful efforts, Philips approached CommerceCX for assistance with their implementation corrections after hearing about our successful Lead to Cash implementation at the World’s Largest Pure-Play Coffee Company.

CommerceCX worked with Philips to come up with a new solution that fit their business process, using our thought leadership skills and advisory capabilities. We introduced CommerceCX’s products to improve maintainability and scalability, and provided a roadmap of implementation timelines.

Part of this roadmap included implementing solutions in multiple phases.

Phase 1

CommerceCX brought down the number of price list items from 15 million to under 1 million, reducing Philips’s data load and drastically improving processing time. This data load reduction reduced pricing and discount calculation time from 2.5 minutes to less than half a second.

These simple but powerful changes resulted in:

  • Improved the accuracy of price and contract selections, providing the best contract price in seconds.
  • Shortened sales cycles and improved revenue recognition time.
  • Better revenue visibility, which exhibited zero margin leakage across the supply chain.
  • Increased customer confidence in Philips, as reduced errors gave more time for customer fulfillment.
  • Provided a great buying experience.

Phase 2

In the second phase, we replaced Philips’s existing price engine with our customized Contract Pricing Operations Manager, an advanced pricing engine we developed in-house at CCX Labs. This pricing engine enabled a Single Version of Truth, housing all pricing data in one centralized database.

Having a Single Version of Truth:

  • Reduced price and discount configuration and computation time by 92%.
  • Allowed the system to consistently and quickly generate prices without crashing.
  • Brought down quarterly pricing update time from 40 hours to less than 8 hours.
  • Upgraded asset-based ordering/service.

By implementing CommerceCX’s Contracting Pricing Operations Manager, Philips’s system now

  • Achieves above 98% accuracy in contract pricing.
  • Generates error-free quotes in minutes or less.
  • Allows users to introduce promotions outside of the entire marketing cycle.
  • Enables their organization to
    • Administer accurate pricing and chargebacks.
    • Guarantee compliance to price-tier commitments.
    • Mitigate rebate overpayments.
    • Ensure that contract commitments are met and all margins are approved.
  • Monitors daily contract net prices and on-demand prices to identify and prevent possible regulatory compliance issues, mitigating risks.
  • Coordinates detailed contract information to create accurate, beneficial contracts that ensure compliance.
  • Accurately calculates all chargebacks, rebates, distributor commissions, fees, and accruals to reduce the churn rate and protect provider revenue streams.

Why CommerceCX?

CommerceCX helps organizations:

  • Fix CPQ, CLM, and QTC implementations.
  • Create predictable sales cycles by automating processes.
  • Come up with error-free Quote-to-Cash (QTC), Configure-Price-Quote (CPQ), Contract Lifecycle Management (CLM), Billing Management, and Pricing Management solutions.

Success Stories

Resolved Broken Lead to Cash
Implementation at Philips

Read More

Fixed Broken Lead to Cash Implementation
in Less Than 12 Weeks

Read More

Reduced Revenue Leakage by 18%
by Digitizing CPQ & Billing

Read More

About CommerceCX

We are Salesforce and Conga experts. We have fixed faulty QTC, CPQ, CLM and CRM implementations for:

  • Ten Fortune 500 companies.
  • Four of the world’s top 10 system integrators.
  • One of the top 5 medical devices companies.
  • The largest pure-play coffee and tea company in the world.
  • The largest clinical trials company in the world.

Speak to an Expert

Sometimes you just need to see how all of these things work together.
We’d be happy to walk you through the Salesforce Platform, the Conga Suite, and how our products can streamline your sales process.

I need help to