Case Study Collection: CPQ Implementation Case Studies (HVAC&R / Service Industry)

basic information

Here is a portion of the data. (For details, you can download from the URL) "Streamlining the complex service structure and pricing of waste collection and processing, achieving a 67% reduction in estimation time." Changing the waste management business. For each and every customer. Texas Disposal Systems (TDS) is the largest independent company in the U.S. for the collection and processing of solid waste. TDS's headquarters spans over 2,000 acres and is the first fully integrated waste processing facility permitted in Texas. The company processes 3,000 to 4,000 tons of solid waste daily and disposes of approximately 200,000 tons of waste in landfills annually. Challenge: Complex pricing for customized services Rick Fraumann, the sales manager at TDS, states, "What makes our company unique is that we started in the waste management industry and have now become one of the most unique business models in the country. We handle almost every type of recycling. In addition to regular waste management, we also compost and convert organic waste. Therefore, our pricing strategy is quite challenging."

Applications/Examples of results

Due to each business division having completely different pricing structures, it became difficult to leverage cross-selling opportunities across departments. Frau Man states, "Our business model is much more complex than selling the same products on retail or wholesale price lists. We provide multiple types of services across different regions, each with its own costs and market dynamics, making it more complicated." "Previously, sales representatives had to use various spreadsheets and maps to determine where customers were located and what the pricing structure was in that region. Since salespeople are not mathematicians, they likely became frustrated with the complexity and time involved. Moreover, because another person needed to verify the pricing after the estimate was created, the chances of making mistakes were high." "We needed a solution that could process more complex data, consolidate all that logic, and calculate a better overall price list at a faster speed."

Detailed information

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  Information gathering and vendor selection Frau Man says, "Regarding CRM, we were already collaborating with consultants, but they didn't have a good understanding of CPQ vendors or functionalities. The more we researched solutions ourselves, the more dissatisfied we became. It seemed that the CRM quoting solutions were designed for much simpler products than our existing ones. We met Cincom at a Microsoft exhibition, where we were able to have various discussions. They even came to our company."

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  About Texas Disposal Systems (TDS) • An independent company engaged in waste collection and processing • Headquarters location: Austin, Texas • Landfills 200,000 tons of waste annually Challenges Before Implementation • A unique business model providing various waste processing and recycling services • Complex pricing due to variable factors • No opportunities for cross-selling Results of Implementation • Reduced estimation time by 67% • Time taken to create proposals and service contracts, including estimates and pricing, reduced by up to 50% • Since configuration and pricing are completed within the system, post-verification is no longer necessary, leading to time savings in downstream processes • Enabled service provision to more customers without increasing current personnel and resources • CPQ is scalable, allowing for easy adaptation to TDS's growth