Sample Management in the Chemical Industry: Improve your Bottom Line (Part 2)
In part 1 of this blog we discussed sample management in the chemical industry and why this process is a key prerequisite for doing business. Sample management as a process integrated into a mobile application for the field organization has tremendous benefits over a disconnected spreadsheet based ‘solution’, for example.
As we already discussed, process efficiencies can save significant cost, but there is more to it. Instead of taking notes and later call or email customer service to place a sample order, the sales representative can now order a sample in just a few clicks on his mobile device, even during the meeting with his customer. He can check sample material availability and receives notifications – as his customer does – on sample shipment status. He can also set automatic reminders to follow up with his customer after a set time, to discuss evaluation results and hopefully be able to place an order.
Why is this so important? Besides providing an easy to use and transparent solution which also eliminates many potential error sources, the chemical sample management solution we are discussing here could have a significant impact on your bottom line.
Let’s take an example:
A chemical company with $2Bn in revenue generates 20% of this revenue or $400M from new or improved products. All such deals would typically require prior product evaluation. Now, let’s assume we can close deals on average just ½ day faster using our new sample management solution. If we break down the $400M in revenue on revenue per day, this would translate to $1.6M per day, assuming 250 working days per year.
Closing deals just ½ day faster on average equals $800,000 in revenue uplift.
Considering additional benefits of an integrated chemical sample management solution such as improved customer satisfaction and avoiding errors such as sending wrong samples, delays, sending samples to wrong addresses, and last but not least the efficiency gains for your field organization as well as for your back office it becomes evident that covering the process in the ‘traditional’ way creates significant cost and inefficiencies. On the other hand, investment in a comprehensive solution can provide ROI in a very short period of time.
Please also read parts 1 and 3 of this blog series on chemical sample management:
- Part 1: Challenges and Issues
- Part 2: Improve your Bottom Line
- Part 3: ‘Day in a Life’ of a Chemical Sales Representative – Solution in Detail