Successful selling in the Process Industry- Greenfield and Brownfield Projects approach)
by Ulrich Seidl
Successful selling of Products, Systems, Solutions and Services in the Process Industry does not emerge from
gathering market information to just fill the sales funnel, nor from attending sales trainings where participants
are loaded with value proposition guidelines, case studies, mind games or CRM Matters to name just a view of the
learning topics. Rewarding selling in the Process Industry is achieved through deep
understanding of the targeted Industry, its stakeholder as well as self-conviction of products and solutions that
meet the customer's needs in terms of technology, price and support. Moreover, through consequent daily follow- ups
until closing of the sales.
The Sales Context in the Process Industry is centered around Greenfield and Brownfield Projects. In the Chemicals
Industry for example Brownfield Projects (investments in existing facilities such as expansion projects) are probably the
most straightforward way of generating Revenue as Plant Owners project team may most likely refer to Products and Systems
based on existing installations. The success rate of approaching such Projects with a basket of Products/Systems differently
from the exisiting installation is not very high. Projects are often carried out by Plant own Project/Engineering team or local
Solution Provider. Note that there are often very close and personal relationships between Owners own Project Team and Solution
Provider leading that expansiom Projects often awarded to local Partner.
Spare Parts in general are ordered directly from the Manufacturer provided Suppliers are Vendor -listed, have contractual
terms & conditions clearly defined and that the Supplier Performance shows a positive and consistent record of delivery of Vendor
listed Products, Systems and Services.
Required Products are often ordered through a Supplier Portal of the Account (especially in the Chemicals Industry the
case), an Interface to facilitate transactions for both the Buyer
and the Supplier. The task of Sales is to check the Portal daily, so that orders can be quickly processed and the delivery
of required Products and Services can be kept high at say above 80%.
Being Vendor Listed at large Accounts is one of the most important and challenging
tasks of any Sales Organization. The Process of Qualification can be quite complex and time consuming with allocation of Sample
Products and Systems, moreover, hosting of Reference site visits across the globe.
Greenfield Projects (investment in new facilities) however are much more complex and require a thorough understanding
of the entire certifying and buying process including firm understanding of all stakeholders. Direct Enduser approach is
often not very helpful as large Accounts have strict compliance regulations that proscribe direct dealing with prospective
Vendors of Products, Systems & Solutions. Projects in general are divided into Packages and sent to qualified international
Engineering Procurement Construction Companies (EPC). During feasibility study/conceptional design, which is normally carried
out by a Front End Engineering Design Company (FEED), Engineering Procurement Companies are pre- selected. Together with
the PMC (Project Management Consultant) EPC Companies are invited to tenter. Engineering and Construction Contractors will
then bid for the package with a detailed design, construction- and Engineering of the Project including procurement of all
equipments and materials necessary. EPC Companies are therefore of significant importance when targeting Projects in the
Process Industry. Basing on yearly CAPEX of large Accounts in the Process Industry, the Potential of Products, Systems,
Solutions and Services are huge and therefore exhibit a further big challenge for any Sales.
Sales through indirect channels such as Solution Provider, Wholesaler or Distributor is another effective way to
address projects, provided Supplier of Products, Systems and Solutions have a clearly defined strategy associated with a
consistent go-to-market approach. Without, there are only channel conflicts in which suppliers often jump between direct and
indirect
approaches and disturb their channel partners. Solution Provider are not afraid to compete with other Solution Partner in
a particular project on the same terms and conditions. However, if there is competition between Supplier, who on the one hand
try to sell their Products/Systems Portfolio to their Partners but on the other hand intend to
compete with their Partners on the same job, the relationship may be spoiled.
Please note that provided article is purely for guidance only and should not be copied, adapted or referenced
in any way.
Essentials of a 5 Year Business Plan
Business Entry and Project Development at large Key Accounts
Successful selling of Products, Systems, Solutions and Services in the Process Industry
© solarvessel.com
√