GLOBAL COMPRESSOR SELLING AT BURCKHARDT COMPRESSION · Principles of how CS-sales works at Burckhardt Compression 1. All business starts with the end-user, be early! 2. Clear ownership

GLOBAL COMPRESSOR SELLINGAT BURCKHARDT COMPRESSIONZürich, November 26, 2013Daniel Schillinger

Online - Best PracticeNovember 26, 2013

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We develop compressor systems and offer components and services that help customers to minimize life cycle costs.As the only manufacturer we cover a complete range of reciprocating compressor technologies.We aim to achieve balanced growth while constantly improving our processes, extending our geographic reach and developing superior solutions for promising applications.

Burckhardt Compression – Who are we?


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Our Core Competence – Reciprocating Compressors, Compressor Components and Service


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Reciprocating Compressor Systems

In operation as a systemWith many years of experience and professional competence we design and procure all the necessary parts of a compressor system.


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The Full Range –Compressor Components and Services

COMPRESSOR COMPONENTS

Valves

Piston rod packings

Packing rings

Oil scrapers

Piston rings

Guide rings

Hyper Compressor components

More components

SERVICES

Burckhardt Valve Service

Spare parts logistics

Field service

Technical support

Component repair

Engineering services

Revamps

Condition monitoring and diagnostics

Training

We keep reciprocatingCompressors running endlessly

LOWESTLIFE CYCLE COSTS

LONG RUNNINGTIMES

HIGHESTAVAILABILITY


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Our Market Segments

Upstream oil & gas

Gas transport and storage

RefineryPetrochemical/

Chemical industry

Industrial gases


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Company Profile� CEO Marcel Pawlicek� Chairman of the board Valentin Vogt� Established 1844� Stocks quoted SIX (BCHN)� Employees (worldwide) 1’078� Turnover 2012 CHF 367 million

%

Compressor Systems

Components, Services & Support

59%

41%


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Qualified Employees Around the WorldBurckhardt CompressionSubsidiaries und Service Centers

AgentsBurckhardt CompressionManufacturing Locations


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� Certified quality and reliability� Continual pursuit of improvements� Thorough in-house expertise� Responsible and sustainable business practices

What You Can Expect from Burckhardt Compression as a Partner

Leading workmanship Proven dedication


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CRM @ Burckhardt Compression� Project startetd in 2011

roll-out from January 2013 – October 2013

� CRM launched for � New machine sales

� After sales case management

� CRM-Consultant:� Infoman up to June 2013

� Online as of July 2013

� CRM replaced a Winterthur-centralized, home-grown Excel-approach


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CRM Objectives� Structure tender information;

documentation; replace former central Excel approach

� Professional tool for the daily work of each sales rep

� Coordinate global quote work

� Globally share information and cooperate

� Manage the global CS sales force

� Gain transparency of future business, qualified forecasting

Grow orderintake andmarket share


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CRM: Accounts & Contacts (Master Data)

� Most important accounts are End-Users and EPCs� Each account has a unique «owner» within BC (BCx or BCAG)� Each account is assigned to one segment and has a defined order intake

potential� Information grows over time. Incomplete info is better than no info!

Structured end-user account withdifferent (sub-) accounts (e.g. locations, subsidiaries…)

SegmentOwnerPotential

Installed compressor atlocation (BC, OBC)Contact person atlocation


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CRM: End-User-Project, Opportunities and Quote

� The end-user project s allocated to one specific site of the customer (sub-account)� It contains one or more opportunities to sell a compressor� Each opportunity contains quotes to one or more EPC’s� All quote documents are available in SharePoint directly from the quote

Structured end-user account

End-User Project

Opportunities(to sell a compressor to an end-user)

Quotes(for the same compressor to various EPCs)


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CSS

CRM vs. ERP: Global Database� CRM provides globally one and the same data base� One global opportunity/quote view; one global case view

� One global Customer Universe with all contacts and addresses

� Instantaneous availability of data (e.g. actual Group Order Intake at any minute)

� ERP varies between subsidiaries; no global access possible

CS BCAG CSS Marketing Contracting

Common CRM Database

BC global network

CS BCxCS BCx


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CS Globalized Sales ProcessPrinciples of how CS-sales works at Burckhardt Compression

1. All business starts with the end-user, be early!

2. Clear ownership of customers

3. Sales is structured in segments of end-users

4. Sales work and decisions are done as close to thecustomer as possible

5. We apply a four-eyes-principle for key decisions


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Compressor Project

CS Globalized Sales Process

RFQ

orde

r

SOP

EPC

aw

ard

Identify opportunityCollect infoAssist spec

Budgetaryquote Firm bid

End-user

BCx, BCAG

…first ideas, FEEDselect processselect EPC

EPC Engineering, Procurement and Construction of project;Select compressor vendor

time

• End-user, EPC and BCAG are typically all in different countries• Typically, several EPC’s are bidding for one project


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CS Globalized Sales ProcessTwo crucial responsibilities of sales before quoting:

Identify opportunities before an EPC requests a quote• Ask end-users for their plans• Public project announcements• Commercial databases• …

Develop these opportunities before an EPC is awarded• …contacting a customer who has not asked us to see him• Listen to the customer and do not fill him up with product info• Think in the bigger picture of the process of the customer• Prepare yourself and know what your added value to the customer is• The best you can achieve: Helping the end-user to prepare the EPC-

subscription material


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CS opportunity pipeline:l Almost 2 bn CHF for the next 2.5 yearsl Good for the near/medium term futurel More distant future can still be improved

CS Global Sales Process - CRM


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Opportunity Funnel by Country

The Challenge• How many

opportunities are in the market?

• How can we identifymore?

• If we knew more, couldwe chase them andhow?

Source: CRM March 3, 2013Bubble Size corresponds to total value of opportunities

For «unknown» , the end-user is not known, i.e. we only have RFQ from EPC


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• End-customer is the origin of our business• Clear Customer Ownership• Sales force is segmented (both in BCAG and in all BCx)

Customer Ownership

Country a

Agent

Country b

BCx / Agent

BCAG

End-customersin segments

• The owner is responsible for the data (completeness, correctness)• The sales-person who owns the HQ of an international account is in charge to coordinate


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Sales is structured in segments of end-customers• A segment is a group of end-customers with similar needs• MRP (our strategy) defines 5 segments we focus on


Customers expectsegment specific know-how and added value froma CS sales person• Each sales person in both

BCAG and BCx isallocated to one specificsegment

• Eases introduction of newpeople/training

• Ensures that we add valuefor end-customers


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Who does what in the bidding process?


RFQ Order SOPEPCaward

…first ideasFEED

IdentifyOpportunity;Collect info;Assist spec

Budgetaryquote

Firm bid

End-user

BC

Opportunity

Budget Quote

Firm Bid (first EPC)

CRM-Entities

Order

End-user

BCx1sales

BCAGsales

EPC

BCx2sales

Firm Bid (second EPC)

Bid-Coordinator

coordinates between theBCx’s involved;

Supports and coaches

Opportunity-Owner

Owns the end-user;Knows first abot the project

Quote-Owner

Makes the quoteand leads nego


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3 Gates to be released by segment manager for every projectCS Globalized Sales Process

RFQ Order SOPEPCaward

…first ideasFEED

IdentifyOpportunity;Collect info;Assist spec

Budgetaryquote

Firm bid

end-user

BCx, BCAG

3 opportunity gates,released bysegment manager

Bidyes/no?

Release budgetquote

Release firm bid


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Sales Management with CRMCRM Dashboard to follow-up opportunities (example T&S):

In-PlayOpportunities with quotesent to customer

WIP (Work in Progress)Opportunities team preparesquote for

ProspectsOpportunities team is not yetworking on


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Sales Management with CRM

Orders

� We are a partner to our end-user and identify opportunites early� We measure indicators that lead the order intake…

…and use those to manage the sales force (Opportunity Mgmt)

Opportunities KPI examples:

• # Customers (current and potential), i.e. the Customer Universe

• # Customers without open opportunities

• # Customers not visited in last 6 months

• # Visits per month

• # Opportunities without activity in last 3 months

Prospects

Work in Progress

In-Play

Time

Seite 30CRM Training CS-Process May 2013


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Learnings so Far• Process first, then CRM; Top-Management attention/involvement• Acceptance in the beginning lower than expected – good old

Excel-solutions… now increasing• Have a consultant who knows/shows standard functions before

customizing• CRM made forecast much easier and substantially more accurate• Global cooperation works well – but only if data is accessible to

all (data integrity/security issue)• Increased pressure on sales people due to high transparency• Substantial increase in order intake• Define KPI’s and visualize in dashboards; otherwise, overview

and priorities might get lost

Documents

GLOBAL COMPRESSOR SELLING AT BURCKHARDT COMPRESSION · Principles of how CS-sales works at Burckhardt Compression 1. All business starts with the end-user, be early! 2. Clear ownership