Autor: Ulrich Seidl
Autor: Ulrich Seidl
The sales in the Process Industry revolves around both Greenfield and Brownfield Projects. In the Chemicals Industry, for instance, Brownfield Projects—investments in existing facilities such as expansion projects—are often the most straightforward way to generate revenue, as plant owners and their project teams tend to prefer products and systems that are already installed. The success rate of offering a different set of products or systems from the existing installation is generally low. These projects are frequently managed by the plant's internal project or engineering team, or by local solution providers. It’s important to note that there are often close, personal relationships between the owner’s project team and the solution provider, which often results in expansion projects being awarded to local partners.
Spare parts are generally ordered directly from the manufacturer, provided that the suppliers are vendor-listed, have clearly defined contractual terms and conditions, and demonstrate a positive and consistent performance in delivering vendor-listed products, systems, and services. In many cases, especially in the Chemicals Industry, required products are ordered through a supplier portal, which serves as an interface to streamline transactions for both the buyer and the supplier. It is the responsibility of the sales team to monitor the portal daily, ensuring that orders are processed promptly and that the delivery performance of required products and services remains high, ideally above 80%.
Being vendor-listed at large accounts is one of the most important and challenging tasks for any sales organization. The qualification process can be quite complex and time-consuming, often involving the allocation of sample products and systems, as well as organizing reference site visits across the globe.
Greenfield Projects (investments in new facilities) are far more complex and require a deep understanding of the entire certification and procurement process, as well as the roles of all stakeholders involved. Direct approaches to end users are often ineffective, as large accounts typically have strict compliance regulations that prohibit direct dealings with prospective vendors of products, systems, and solutions.
These projects are generally divided into packages and sent to qualified international Engineering Procurement Construction (EPC) companies. During the feasibility study and conceptual design phase, usually conducted by a Front-End Engineering Design (FEED) company, EPC firms are pre-selected. Along with the Project Management Consultant (PMC), these EPC companies are invited to tender. Engineering and construction contractors then submit bids for the package, providing detailed designs, construction plans, and procurement of all necessary equipment and materials.
As a result, EPC companies play a critical role in targeting projects within the Process Industry. Given the annual CAPEX of large accounts in this sector, the potential for selling products, systems, solutions, and services is enormous—posing both a significant opportunity and challenge for any sales organization.
Sales through indirect channels, such as solution providers, wholesalers, or distributors, can be an effective way to approach projects—provided that suppliers of products, systems, and solutions have a well-defined strategy paired with a consistent go-to-market approach. Without this, channel conflicts can arise, where suppliers switch between direct and indirect methods, disrupting their channel partners.
Solution providers are generally not hesitant to compete with other solution partners on a project, as long as the terms and conditions are the same for all. However, if a supplier attempts to both sell its products and systems portfolio to partners while simultaneously competing against those same partners on the same project, it can damage the relationship and trust between the supplier and its channel partners.
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