Quoting Custom Products in NetSuite

00:14okay thanks a lot for your patience everybody uh my name is Jeff underdahl I'm the vice president of technical sales and product strategy here at luxent and I'd like to welcome you to an overview of the IQ cpq solution with netsuite um we have a uh a fair packed agena to be able to get us through the next uh the next 30 minutes here and uh although we're going to be spending the bulk of today inside the product looking at the software I have four slides just to kind of introduce us and introduce some of the concepts you're going to see here inside of IQ and uh and that will kind of set the stage for as we jump into the software side of it so first and and foremost um a little bit about luxent we're uh

00:54we're about a 50 employee company headquartered in sunny Southern California Aliso to be exact although we do have a number of a handful of offices if you will around the country in uh in North America here um we focus specifically on the manufacturing and the distribution vertical um although we do we do a lot of work within General business um those are the two verticals that we tend to focus on um most of our business so if you are a configured order if you're a custom manufacturer if you're make to stock make to order engineer to order um and of course General Distribution those those are those are the verticals that that we tend to focus on specifically uh we do a lot of work with netsuite we're a solution developer for them as well as a service provider uh we are also a Salesforce silver partner and the product

01:42you're going to see here shortly IQ is a BFN or built for netsuite certified solution so one of the things I like to start talking about here and this is kind of what uh was the precipice for us developing this product was there were some shortcomings inside of netsuite as it relates to the quoting side and so just a a handful of of bullets here you might need an advanced quoting solution if and we'll start with number one there if a good amount of your business involves quoting products that are custom and don't exist in your netsuite item Master you probably need an advanced quoting solution um so this is you know netsuite as a as a product is very specific to wanting to have part Masters in the part uh part record to be able to put a quote in this system and a lot of people that do custom builds custom kits custom product quotes don't want to have have the hassle of setting up those item Masters just to send a quote out to their customer especially if their hit ratio is only 20 or 30%

02:41you end up with a bunch of stuff on your item record uh that necessarily doesn't go anywhere you might also need an advanced quoting solution if many of your quotes are are same as except so uh we have a good number of customers that will have a standard product with a of materials in a production routing or a standard bundle or kit and as they plug that into a line item they want to be able to manipulate the items on that they want to be able to add different components to the bill they want to be able to uh change out and swap out products that are on a bundle or a kit these are all things that IQ supports great um and then product configurator um I know the uh the C in the cpq for configurator this is what gets a lot of people's attention and

03:27this is something something that uh we have a very solid rules-based configurator that can not only determine pricing and select products for you but also use an Expression Builder and the rules engine to generate a kit list or a bill or a route and and roll up your cost for you so you can see that Mark it up and put a price on it you probably need an advanced quoting solution if today you're using the template part numbers or a template part number inside of netsuite as a quote line placeholder very common for us to see somebody setting up a a custom part number with with a price in it with an extended description and people are just changing that description out to be able to be representative of what the customer wants and therefore once they convert it to a sales order it becomes the real part number which may or may not have the component swapped out at the work order which leads me to number five which is you find yourself changing out work order components on the Fly you know while

04:29you're out out there setting up that job and while that might seem like that's an okay solution it really throws off the cost of that standard product that you've got set up at the item record so if you've got an item with these four components on it and your average or standard costing that the product will be a certain cost and then if you go changing that out at the work order that's going to change your average and or throw a bunch of variances into the GL if you're standard costing so there can be a lot of a lot of hiccups that come into play here if you're doing anything that's out of the ordinary um different than just what a standard product would be and finally you know you need an advanced quoting solution if you're spending too much time in what I like to call folder land looking for that special Excel spreadsheet that you might have done for that customer and

05:15you're digging around trying to find it and then changing it and saving it as something new every time you want to make a tweak to that estimate or that quote so this list frankly could go on and on and on um the you know five or six that that kind of you know ring true to me that I see day in and day out when I'm working with with folks that are doing custom quoting or or configurator based quoting or trying to inside of netsuite and quoting can be complicated and if you look over there on the leftand side there's all kinds of things that go into doing a quote you know you've got calculations if if you're somebody doing doors and windows and you've got length and width and height and depth and you need to be able to calculate all those togethers to generate detailed bills and componentless routings so these are all different things that play into having a system like IQ that can do all that heavy lifting for you automatically as we start to dive into the software here in just a couple of minutes one of the things

06:13you're going to see is we kind of go through the flow is guided selling which is a neat tool first of all that as you first go into the solution it prompts you with questions and answers that allow you to narrow in on the product that you're trying to quote to your customer and that product might just be a catalog item or it could be a configured item but think of the guided selling interface as a question and answer kind of a preconfigured if you will to get your sales reps to the right products uh quicker and then of course the configurator so being able to configure customize and and build the products or services that you need to be able to meet your customer's needs generating the proposal or the quote acknowledgement out to them being able to attach different media spreadsheets Pres ations any other things that might go into that we have a very basic quote acknowledgement

07:04and then we have an advanced proposal generator that does very sophisticated you know multi-page 8 10 page proposals um if if that is what your business requires and then industry functionality um I kind of just mentioned those with a few bullets just above that the the things that you'll see us do inside of IQ are specific to the vertical that we play in which is manufacturing and distribution so you'll see things in here that are conf configurator can do with regards to creating bills and creating product kits and setting up parts and netsuite for you automatically it's more than just a product selector and those industry vertical functions are what make us different in the cpq space with luxent and IQ as I said in the first slide it is built for netsuite certified and uh so you can take some comfort knowing that it goes through a rigorous testing process with the sdn team over at netsuite to ensure that everything is working properly and and certified for each of their two releases a year that come out so with that um after a couple minutes there let's jump on into the product come over here and

08:10we'll bring netsuite into Focus here so what we're looking at here when when you're you would start your process inside of netsuite most typically you could start your quote from within IQ but when you've got an Erp system like netsuite at your disposal it makes a lot of sense to be able to Leverage some of the tools where CRM is concerned especially as it relates to having sales opportunities um and then also just being able to quote right out of the account or customer Master record so what we're looking at here on this screen is just a standard opportunity inside of netsuite a sales opportunity there are no line items down there as you can see at the bottom of the screen but this is a a webinar opportunity

08:51we've got some information already in it like a projected total of of $5,000 for this opportunity you'll see a a couple of buttons up here at the top one says create IQ quote the other one says view IQ quotes and because you might have multiple quotes for an opportunity this button right here would launch you into IQ display the one or two or 10 quotes that you have against this opportunity and let you bring open that one and do more work on it or flip it to a sales order or whatever the case might happen to be you'll notice down here in the netsuite timeline there is nothing tied to this opportunity record there are no estimates there are no sales orders I'm going to walk you through the process you can literally see it happen right in front of your eyes so one of the first things you'll do here is you'll create an opportunity or you'll create an IQ quote from this opportunity

09:41that's going to take us into IQ and bring the customer information across in this case 3M it's going to bring across the name of that opportunity being webinar opportunity I can change that if I want to make it a different name of course the opportunity ID and the description are also coming across here so that's how it's maintaining the relationship between the two your draft status here these are user defined during your implementation and at the bottom of this list what you're going to see is a convert to sales order and after we've added some lines and and gone through the configuration process I will show you how you convert this to a sales order over a netsuite for now we'll leave it as draft once you've done all the work on the quote header you can then click over here on search and add and that's going to take us over to our line item page more specifically though into what

10:31I'll call what we call guided selling and you can see it right over there on the very top of the screen above my cursor there where you define what type of questions you wanted to ask and each the next question can be dependent on the first one that you answered so as you come in here let's say in this example we were a camera distributor and if I was looking for a camera where I could change lenses or an all-in-one those might be my first two options so if I said show me everything where I can change lenses I'm going to get all of my slrs that come into Focus for me to be able to pick one of those and that may be as far as I go and I can simply add that to my quote and move on with life however if I were to pick something different I'm going to see a different list of products show up in this case point and shoots and then you'll notice that some of the options down here change again so you might ask if

11:23it's professional shoots or or hobbyist kind of shooting um you might want an ultra compact versus a regular compact which will change the options again and as I look at those I can see all those different of which only three come up there and then I can add that to my quote and if I hit this little return key back here it brings me back to my line items and I can see that and anything else that I've picked off the guided selling page that shows up on my quote now it's very easy to get back into it I could click right over there and get back into my guided selling page reset the options and continue moving or I could continue to use my search key here to be able to start doing a type ahead search where if I were just to type in jcu I'm doing a search against my product codes or my descriptions here and I've got a number of different products that

12:09I'll bring into uh in the focus here one of them might be this uh this display panel so if I clicked on that I can bring that one into context here if I wanted to bring back into context or show you an example of what a kit would look like if I brought in this Direct TV package kit you'll notice this one comes in but there's a little Chevron right here that's going to show you all the different components that come with that kit and then depending on how you've got this set up an IQ you can swap these components out or you could change them and leave them right there on the fly or add to them in the interest of time because this is only a 30- minute webinar I'm going to continue moving on into some of the other more popular kind of things that people like to see which would be the product configurator so some of these items will be configured like this work station up here so if I selected that one you'll notice that

13:02it's going to bring me now right into a question and answer page which not only is going to prompt me for all the different things I need to do but also build my bill of materials and or my component list uh accordingly now in the upper right you'll notice under custom actions there's nothing that's happened up there you're going to start seeing plus ones and twos and threes show up there as I start configuring this so I would pick a processor for example and you'll notice that immediately my smart code is going to start uh getting built as well as my pricing gets built as well as if I look at my custom items I've now added that to my bill of material so when I go assemble it on the floor it knows the right uh chip or processor to put in this thing and as I start going through here and start making selections

13:50you're going to see other things start happening and again more unique smart strings the custom actions in the upper right hand corner are starting to add those on and as I start making determinations like the monitor size the graphics card can automatically default in with a checkbox or there could be another option right there that comes in uh as well I should note that on the configurator here I can have any of these fields appear or disappear based on other selections or options these could be radio buttons they could be dropdowns they could be multi- selects there's a number of different things that you could pick as you go through and you configure something something here I'll pick my keyboard and mouse you'll notice that it's driven all of my details over here to our spec panel given me a smart string given me a price and you'll also notice over here that all of these components have

14:41now shown up and will be on my bill when I convert this over inside a netsuite I'm going to click on save and exit up there in the upper right hand corner this is going to bring me back to my line item and you'll now start to see that get set up as a fourth line item over there on the quote so we'll hit return and now we can see our configured workstation now two more examples I'll show you I want to talk a little bit about the custom product side of this thing one of the other products that you probably saw in my dropdown list here was this assembly so I've got this jcu 300 assembly sitting over here and if I were to bring that into context here there is a difference between a kit where I'm just going to release a pick list out to the floor and have inventory picked and then I'm going to go ship it there's a difference between that and something that's going to go to a work order where

15:35I'm actually going to have a build plan to actually relieve the inventory and make this product and behind the line item here if I were to click on edit there and bring our line page up you'll notice that this jcu 300 if I went in here and said pull the bill and Route you can now see that this is going to have a multi-level subassembly structure so I'm going to need this subass and this subassembly here's the raw material that goes into that here's some Hardware at the upper level I can see all of my costing getting broken out here for a total but what you're seeing here is the ability to have that that route and that bill of material and as I look at those and I explode those you can also see the operations coming in here as well as all the cost for setup and my machine run time and my labor rates and my labor burden all of that is coming in for the ride with this manufactured item

16:30now you might remember in my PowerPoint slide where I talked about you might need an advanced quoting solution if some of the things you do were same as accept or if they're custom one of the things we allow you to do inside of IQ is be able to add custom products right up here so if this was going to be a custom rack and I wanted to call it that way we'll just give it a number right here that you might see will give it a product code that's defined by you guys could be the customer's drawing number we'll give it a quantity of one that we're going to be quoting for them and we're going to we could simply add that to the line item with a price and be done with it if we wanted or if we wanted to do a little bit more additional engineering work to be able to see the costs and roll it up and mark up Mark up the cost and put a price on it we can do that too so if that custom server rack looks a lot like that jcu 300 that we did on line five I can come over to here and I can come over to my material site and I can copy it from something that already exists in the system so

17:32we'll grab the operations and the components we'll type in jcu will bring in that assembly and now for this custom item I've now got that same environment in here and you might make some decisions in here like you might have to delete off a subassembly you might add a different component so if you were to come in here and you wanted to add a custom material to this I could do that and say I need a quantity of one I could say the cost is going to be 100 bucks and maybe burden on that is going to be three when I save that I've now got that custom material that's on there I could even go in there and add standard material so if I wanted to search my product list and I wanted to put steel as an example in there I might want to just grab something like that put it on identify how much I need maybe it's half a sheet of something and I could come in here and and if the cost was in there it would bring that in and I could save that and also bring my my standard product in as

18:32well and once you start manipulating this also manipulating the routings here at the subassembly level let's say if you wanted to go in behind that and change your setup change your runtime change your scrap rates your setup rates any of these can be changed and what all of that ultimately affects is up here at the top you're now going to see a pretty slick pricing configurator up here what we call the material configurator that's going to roll up all of your cost for material overhead machine labor time personnel and give you a total product cost of $16.91 I can identify what I want my markups to be over here so if I just wanted to do a product markup of 40 cents or 40% across the board and I wanted to do a markup up here of 20% across the board I can start to see those numbers getting calculated and letting me know that probably if you want to get a 40% margin on that

19:26you need to be charging this amount amount of money right down here on the bottom and of course you can change those if you want so if you believe the market will only bear 2500 I can type that in and see what my target margin is going to be accordingly and when I update my sales price you're going to see it drop that in right here on my line so there that is giving me my my margin threshold of 30% I've got visibility into that there could be miscellaneous charges that you put in there for NRE or anything else that might be there but also wanted to just take a minute here to just show you how we could do the custom side of this as well now what you'll like to know about what's happening here outside of IQ and in the interest of time

20:09I'm going to skip generating the quote acknowledgement but but no for example if I were to click on the review and send page right here this next page is where you will generate your quote acknowledgement or your proposal this page is where you can go to see all the detail for all your different lines what the pricing is what the disc accounts are um any of that can be entered into IQ and we'd be happy to show you more of that at a future time but when we talk about integration back to netsuite if I were to come back over here to netsuite and reload this screen the entire time that I'm working inside of IQ we are building the exact same replica of a quote back here on the netsuite side so all of your portlets all of your kpis everything is intact on this end of it and if I were to drill into that quote you'll see all of our line items including the custom line down there on that list and

21:04there's that custom part right there and we're cross referencing it with a with a placeholder part in the quote yet when we flip it to the sales order you're going to see that actually generate a real part number inside the system so if we bounce back over here to IQ came back into the header page drop Dr down to that status again that we saw a little earlier and changed that status to convert to sales order and then we went back to review and send or actually I could just go back into next weed here that would that would get the point across too now what it's doing is it's taking this quote record and it's converting that quote into a sales order more importantly that custom item that you did some of that engineering work on is now being built as we speak while I'm talking to you during this demo so it'll take a a couple of seconds 20 seconds for that sales order to show up here

22:04we'll see it momentarily we'll drill into that so you can see how that that finishes the process and then of course if it's a manufactured product you're going to move into your work order process as usual if it's a picked inventory item or a sales kit bundle you're going to just generate your pick list and move on with the flow as you normally would inside a netsuite that way so we'll refresh this one more time and we'll just just we'll just give that a minute here we've got six or seven line items on there that we want to see come through there and and and what's happening there in the background is is developing the components for that part so we'll jump back across here in in just a moment in the meantime here I think it probably makes sense to just kind of wrap up I'll come back over here to our to our PowerPoint slide and um one of the things that I also wanted to touch on real quickly here in in the few minutes that we have left is the Expression Builder and

22:57there's only so much that you could dive into in a 30 minute webinar but one of the things when you look at that product configurator you saw me do a computer just a little while ago but we can also do very sophisticated estimating inside of IQ and this will be an example of of someone who is taking if you look on a left hand side they're they're taking length and width and the layers of the product and the thicknesses of those layers and the densities rail widths at the bottom and if you look on the right on the spec panel you'll notice how we're doing lots of calculations and conversion in to do surface area square feet um about five from the bottom you'll see a rail volume and board feet that's getting converted and we do all of that inside of our Expression Builder so you would pick one of those out you can see the mathematics and the functions and the fields that you would insert into there so you can kind of get an idea there of the math that

23:48we're doing where we take the fields and we're multiplying them together and bringing them together like you would do in an Excel spreadsheet and based on the answers of that variable you could then you'll notice up here have after action after actions if you look in the upper left to be able to say I want to add a product to the build of material and I want to update specific fields and I want to do that based on the answers and those variables so there's a lot of power inside this product configurator it is much more than just a product selector so I wanted to make sure you guys had a sense of what this thing can do from a capability perspective as you you know get off the phone and and might be considering this to be able to replace your spreadsheets today so with that we have a couple of minutes here um I notice if I were to look over in the question panel um we'll see if

24:42we've got a couple of those questions there one question that came in was whether or not um you have the ability to generate the build of material over inside of The netsuite side answer to that is absolutely you do we've got that one so yes you can we've got another one coming in there so if I add an item directly in netsuite will it show up in the IQ side of things specifically in the quote the answer is yes so the integration is when you set up products customers and even different kind of products in netsuitewhether it's an assembly a kit an inventory item or or a non-inventory item when you set those up a netsuite they automatically come over and get replicated in the IQ part record system so that they're there for you to be able to quote on that side of it a very good question there I think I've got one more coming in here and

25:38we'll just let that guy come in and oh some something was coming in there but it looks like it got deleted so one of the last things that I wanted to toggle back to real fast we back over on The netsuite side there while I was answering those questions our sales order had gotten generated there are multiple lines on that sales order but uh just wanted to Circle back round that out and just let you guys see for for our webinar opportunity that that did indeed come across so uh we'll jump back over this wrap this up um if you want to get in touch with us with about more information we'd be happy to give you a more focused presentation it's uh these tend to be a little bit more broad when you've got a a larger audience on a call like this but

26:20there's a number of ways of getting a hold of us you'll probably get a call back from some more of Business Development folks if you attended this webinar but feel free to get in contact with us for any of those methods below there that you can see on the screen and thanks so much for for taking the time to spend 30 minutes with us over here taking a look at IQ and learning a little bit more about luxent um again appreciate it have yourself a great day