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Machine Engine

Machinery & Equipment

Complex manufacturers of machinery, equipment and heavy goods often customize their offerings, ranging from installation services or specific usage scenarios to complete re-engineering of specific modules or components such as new materials, conditions or upgrades. This combination of make to order, configure to order and engineer to order leads to Configure, Price and Quotation (CPQ) tools for these companies often supplemented by complex Excel spreadsheets to calculate the engineer-to-order components of the price, or project management tools to plan and then cost-out the project-related aspects. Hence the term Project-CPQ which applies to Twenty5's suite of applications. As competition squeezes margins, understanding the cost drivers and providing an accurate, reliable and risk-adjusted price is critical to ensuring profitable delivery of engineer-to-order based proposals and projects.

Problem

Complex equipment manufacturers typically orientate service and product lines around a range of core offerings, which are then tailored or customized to suit individual customer requirements, resulting in a blend of configure-to-order and engineer-to-order proposals. Rather than fully plan and design each novel product offering and its associated indented bill of material for each quotation, complex equipment manufacturers and servicers have to creatively blend existing offerings with one-off rough-cut project plans and proposal bills of material, combining engineering/design, fabrication/assembly, installation and support services together into a single project plan, cost, price and quotation.

Solution

Project Knowledge Base

Mine existing proposal and project data from your SAP ERP, define best practice templates, and set-up new proposals faster, directly from your CRM based on prior knowledge and performance history.

Manufacturing & Procurement

Estimate large BOMs from SAP, PLM or Excel and adjust using similar-to relationships and machine learning from prior ERP history such as supplier purchase orders or shop labor confirmations - to derive confidence, unit, recurring and non-recurring costs.

Effective Sourcing Decisions
 

Integrate cost estimates for purchased materials and services with supplier quotations from SAP Ariba or Coupa, or using our tool to track supplier quotes. Manage TINA/TCPD thresholds and select proposal materials for sourcing event generation based on top % of cost, supplier, commodity, total supplier spend etc.

Pitch-Ready Reporting

Provide management and customer reports (cost/price tables, phases, timeline, assumptions etc.) based on a single source of the truth, and slice and dice your proposal using our powerful price/cost analysis pivot and AI co-pilot. Understand risk-adjusted cost and margins.

Model Complex Bid Structures

Manage proposal structures such as the WBS, deliverables, billing plans, resource categories, cost elements and schedules, together with tags, BOMs and optional sets, to better model complex engineer to order outcomes.

Engineering & Services

In addition to discrete or level of effort estimating, use Twenty5's formulas and cost estimating relationships (CER) to let our AI calculate effort and cost for repetitive or parameter-based tasks, anchoring estimates in past performance.

Flexible Pricing
 

Support all contract types such as fixed price, target-margin, subscription/lease, or outcome based pricing using configurable questionnaire inputs, with our customizable pricing engine and SAP ERP integration for price conditions.

Deliver Against What You Bid
 

At contract award, seamlessly convert Twenty5's proposal into an SAP contract, revenue plan, project/network and labor/material/other resources, for execution and actual cost collection in SAP, expanding the same WBS structure from your proposal.

Benefits By Role

  • Quickly digest key proposal stats

  • Compare proposals across product lines or divisions

  • Understand pipeline profitability by quarter

  • Compare actuals to estimated during project delivery

"I will happily share our positive experience of working with Twenty5 with other companies."

Barry Long, VP of Pricing
Cubic Corporation

Resources

Infographic

Image by Minku Kang

Overview

industry machine
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