Best Practices for Competitive Quoting
Three ways to obtain Price and Availability
• The purpose of this presentation is to address best practices for distributor
competitive quotes.
• There are 3 methods for obtaining price and delivery for KEMET product:
1) Quick Price and Availability from Partner Hub
- Best used for a bid-for-bid, or known non-competitive inquiry,
this option allows you to type in a single part number and receive
price and availability.
2) ETBF System – “Quick Delivery & Price” menu
selection, when more detail like NCNR status,
plant location, packaging and MOQs are needed.
Again, parts can be entered one at a time.
3) Competitive Quote Submission
Used when a customer is seeking competitive pricing on one or more part numbers.
In this scenario, your RFQ must be submitted to KEMET’s ISS (Inside Sales and
Service) Pricing Analysts.
This presentation will focus on the third option: Competitive Quote Submission
Key Factors Influencing Competitive Quotes
• Use the KEMET quote form:
Find it under “Forms” in the Partner Hub database. By using the KEMET form, your
quote will be uploaded into our system for critical tracking.
• Send your quote to the ISS Rep handling your area.
In the Americas, Inside Sales & Service is primarily handled out of Headquarters in SC,
with our offices in Boston, Michigan and San Jose handling some local quoting.
Pricing Analysts are assigned by area. (See maps for all regions later in this presentation)
• Does it require immediate attention?
Include this in subject line of your email. Note the due date.
• Did you remember to state the Customer Name and Location?
• Include all competitive information you may have in the “notes” section:
- “Currently using AVX”, for example
- Advise what the competitive p/n is, so we can be sure of the cross
- Is there a customer drawing, special order requirements or quality clauses? This
is critical information to know prior to our quoting a price and delivery!
- Did you work on the design or supply samples?
- Do you know what resale the customer is paying?
- Is this a second look from a previous quote? If so, state our quote number.
Guidelines for Quoting
Determining whether to send an RFQ in for special costs, or use your screen cost
• Here are some suggested guidelines for determining whether to send the quote
in for special pricing, or use your system costs:
 If a customer is known to demand competitive pricing, send it in.
 If it is a multi-line quote with some small and some large quantities, send it all.
 If you currently support the business, but the customer is sending the quote again,
he may also be sending it to your competitors. Even if you have a debit or contract
number, play it safe and send it in again. Better yet, contact the customer to inquire
why you are being asked to quote again. He may have been given some better costs.
 If the customer is using another manufacturer and is considering crossing to KEMET,
send it with any competitive information you may have.
 Is the total value of the quote under $1000.00? If so, you may use your system costs.
 Some of our ceramic chips are very inexpensive. A C0402 or C0603 opportunity
may easily be under $1000.00, but the quantity is quite high. Use your judgment here.
 If the customer appears to be seeking budgetary pricing; he’s offered no targets and the
total value is low, use your system cost.
 While some of our distributors have negotiated volume discounts on top selling part
numbers, other product is evenly priced across the distributor channel. Film and
Electrolytics (R76, R82, PHE, PME, ALS, ALC, PEG, for example) fall into the “level playing field” category.
ISS Price Support Team- Americas
British
Columbia
Alberta
Manitoba
Quebec
Ontario
Saskatchewan
WA
MT
Jennifer also has
El Pasco, TX
OR
ID
San
Jose
NV
MN
WI
SD
MI
WY
NV
Back up for Quoting
Monique Small 978-658-1663
for Karen Agresti
Atalia Garcia 523331232141
for Erika Tubiates
ND
NE
IA
NJ
Utah
CO
CA
AZ
NM
IL
KS
OK
MO
Lisa Hamon
Jennifer Gibson
Yvonne Price
Betty Revis
Melissa Sherman
Karen Agresti
Rhonda Stephenson
Tina Elder
Erika Turrubiates
(864) 228-4219
(864) 967-6846
MEXICO
(864) 963-6446
(864) 963-6689
(864) 228-4196
Guadalajara
(978) 658-1663
(313) 727-1069
(408) 433-9438
52-81-83297900 Ext 4721
NC
TN
Greenville
AR
MS
TEXAS
IN OH
LA
GA
SC
South America
AL
FL
Puerto Rico
SA
Rev 7/15//2008
Rev 8/14/12
Distributor Quote Team - EMEA
Price Team Supervisor/
TTI Primary Contact
Arrow - Primary Contact
Avnet & Digi-Key Contact
State/ Country
Russia
Scandinavia
Latvia
Poland
Estonia
France
UK
Israel
Spain
Egypt
Serbia,
Romania
Bulgaria
Greece
Turkey
Italy
Europe
Area/City
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
All
Goran Trpchevski
[email protected]
00 389 25514605
Kristina Stojkoska
Ana Nedelkovska
KEMET Pricing Analyst
Ivana Gjorgjieva
Ivana Gjorgjieva
Ivana Gjorgjieva
Ivana Gjorgjieva
Ivana Gjorgjieva
Nada Angelkova
Nada Angelkova
Nada Angelkova
Andriana Ognjanovska
Andriana Ognjanovska
Andriana Ognjanovska
Andriana Ognjanovska
Andriana Ognjanovska
Andriana Ognjanovska
Andriana Ognjanovska
Andriana Ognjanovska
[email protected]
[email protected]
Email
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
00 389 25514604
00 389 25514606
Phone #
00 389 25514601
00 389 25514601
00 389 25514601
00 389 25514601
00 389 25514601
00 389 25514602
00 389 25514602
00 389 25514602
00 389 25514603
00 389 25514603
00 389 25514603
00 389 25514603
00 389 25514603
00 389 25514603
00 389 25514603
00 389 25514603
Quote Team for Asia
Name
Kiko Liu
Elaine Lai
Mandy Dong
Rita Zhou
Maggie Chen
Email Address
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Phone # Country Code 00
86 755 2518 1306 x 801
86 755 2518 1306 x 809
86 755 2518 1306 x 816
86 755 2518 1306 x 803
86 755 2518 1306 x 148
Areas/Accounts Covered
Singapore, Thailand, Philippine, Indonesia, Vietnam
China, Hong Kong
India
Japan, Korea, Malaysia, New Zealand, Australia
Taiwan
Quote Numbers and Debit Numbers
Common Questions & Answers
•
Your quote will be returned on the KEMET form, referencing a “P-number”
 This “P-number” is stored in our quote system and acknowledges you’re actively seeking this business
•
Why is a quote good for only 30 days?

Usually buys occur within 30 days
• What if I get my order after the 30 days runs out?
 If the customer has awarded the business to you or lets you know your pricing is acceptable for
future orders, ask us for the SFSD (Ship From Stock and Debit) number.
 A debit will be good for a minimum of 3 months up to one year. Secure your pricing with a debit
number which begins with “K”.
 You will need to state your resale price when requesting a debit number.
 You may then place an order with KEMET if necessary and be prepared when the customer
purchase order comes in.
 Once you ship the product to your customer, you will submit your ship and debit (SFSD)
information and receive a credit for the special authorized cost.
• Why is the quoted cost not our BUY cost?



KEMET’s distributor business is a Ship from Stock and Debit (SFSD) model, which means you buy product
at your book or VPA (Volume Price Agreement) cost. This inventory is yours to ship to any customer.
A ship and debit cost is authorized for a specific customer and does not apply until you ship the parts to
that customer. Once you ship to the specified customer and submit your SFSD information, KEMET will
issue a credit and you may debit down to the “authorized cost”. It works like a rebate.
You may submit for credit as you begin shipping increments of the full quantity, until your debit
expires. KEMET allows you to ship more that the stated quantity unless we are in an allocation mode.
Common Questions & Answers
• With a SFSD number, will I have a cost advantage over my competitors?
 The answer is almost always “yes”.
 Our ISS Price Analysts always check POS history and debit history as part of the quote
process.
• An SFSD secures my business with my customer until it expires, right?

If your customer is sending the quote out before your pricing has expired,
consider whether other distributors have gotten the quote as well. If the
answer is YES, send it in for quote again!
 The ISS team will always strive to protect the incumbent, but just to be safe,
advise the ISS rep that you are still actively supporting the business.
 Follow up with the customer to determine why the bid is going out again.
Gain as much competitive info as you can and let us know how best to
approach it. Someone may have gone in with an unsolicited quote and
underbid you.
 We want to protect our business together, so play it safe and send in
the RFQ even if you still have an active debit.
•
How can a smaller distributor compete with the big guys who get price
advantages based on the volume they buy?
 We need distributors of all sizes and specialties. Establish a good relationship with your
local KEMET rep and develop a strategic customer base together
 Communication is KEY!
Common Questions & Answers
• If I’ve supplied the prototype quantity, I should have the opportunity to
quote the volume buy.
 We agree. That’s why the ISS team checks POS history to see who’s been supporting
a piece of business.
 Stay close to the customer to make sure you get the opportunity to quote the big
volume. Advise the ISS team that you supplied the samples or prototype quantity
when you send in your quote. You’ll get the pricing to be competitive.
 ISS will often consult the local KEMET rep. Be sure you advise him/her of your
activity at the account.
• What if a price goes up on a part before I’ve shipped it to the customer,
or before they’ve completed their scheduled buys?
 You may ask for an extension on your previous price. We may or may not be
able to hold it. You may have to go to the customer and either have them take
the balance before the scheduled price increase or advise them that you’ll have
to increase their pricing.
Pay close attention to emails announcing a price change notification.
Don’t get caught in a negative margin sale!
Thank You!