Distributors selling components to OEMs spend a substantial amount of time on design development with the OEM so that the OEM ultimately selects their manufacturer’s component for the design. Distributors work with Manufacturers Representatives or their own sales engineers to develop solutions for the OEM’s products.
To protect themselves from competition during this long design period, distributors prefer to register designs with the Manufacturer. What distributors want is a record that they found and registered the design first, before other distributors servicing that OEM. This gives the distributor preferential pricing if necessary at the time the design goes into production.
NEHAHET offers a comprehensive Design Registration module that lets distributors register designs as follows:
- The distributor submits a registration to develop a design with a specific component for a specific OEM product.
- The component manufacturer using their internal workflow decides whether to approve this registration.
- If the registration is approved, other distributors will not get financial incentives from the component manufacturer, so they will generally not compete in developing designs for this OEM product that use this component.
- After registration is approved, the distributor can use NEHANET Partner Portal to manage the opportunity, keeping track of revenues and contacts associated with it and of contract manufacturers who will ultimately build the OEM’s product.
- After winning the design, the distributor uses NEHANET Partner Portal to update the status of the design registration.
NEHANET can automate your end to end design registration process, starting from the NEDA form that your distributor uses through the entire approval process. Please keep the following concepts in mind when you are providing data for your design registration system:
- The NEDA form (or variation thereof) serves as the starting point for distributors to submit their registrations.
- Registrations are reviewed and approved/rejected by RSMs etc. Please think through how you want to handle this and write it up in your requirements document.
- Email notifications are used to inform Distributors, Rep, RSMs etc of the status of their design registrations.
New Distributor Account Setup
Since Design Registration is for Distribution Customers, you need to have a way for Distributors to enter new Customers as they identify. There are two ways to accomplish this:
- You can give access to the Accounts module to the Distributors so they can create Accounts as they deem fit.
- You can create a New Account setup form and deploy it in Design Registration module. The Distributor can fill it and submit the form. The form can email a designated person who can then validate the request and create the new Account in Accounts module.
There are no real advantages to use one method over the other. Option #2 gives you the Manufacturer more control over new Account creation.
Converting Design Registration to Opportunity
Once a Design Registration is entered and Approved, there are two possible options available.
- You can add a new status value to the Design Registration status field so the Distributor can flag it as a Design Win.
- You can customize the Design Registration module, to enable a option to convert Design Registration to an Opportunity, THis will transfer all the relevant information from the Design Registration module to the Opportunity module and allow you to track the Design Registration as part of your Opportunity pipeline.
Creating Quote for Design Registration
The primary reason a Distributor registers a Design is for price protection. When two or more Distributors are pursuing the same Opportunity, the Distributor who does the most work gets his Design Registration approved by the manufacturer. Once the Design Registration is Approved, when the Distributor starts shipment, they might come back to the manufacturer to ship it to the end customer below the target resale price. In these cases, since they are shipping from stock, they need to get a lower pricing approved for this Opportunity, so they can register a Debit claim with the manufacturer.
TO make this process easy, you can create a quote for Approved Design Registration by clicking on the $ icon in the Design Registration grid. The system automatically transfers all the relevant information to the Quote form, so the Distributor can submit the Quote for Approval.
As a first step, please give NEHANET Services the form/format you are currenly using for new registrations along with a spreadsheet of current registrations in process so that they can configure your system, load in your data, and advise you on any gaps between your requirements and the way your system has been configured.
Note: once your Design Registration system is setup, NEHANET services can provide you with an Excel template which contains the fields specific to your system. This template is used to import your data in quickly and easily.