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Customer Snapshot

Getting “Floored” by Better Pricing

US Leader

in recycling plastic soda bottles into polyeter carpeting

 

Through their Mohawk ColorCenter Dealer program, Mohawk Industries supplies more than 1,200 sales representatives with the resources to deliver the best possible service to their customers. With the aid of a mobile-enabled SAP CRM Sales application, they are now using a data-driven approach to pricing that helps ensure the performance and profitability of their retailers and the satisfaction of their customers.

 

Company

Mohawk Industries

Headquarters

Calhoun, Georgia, USA

Customer Website

www.mohawkflooring.com

Revenue

US$5.8 billion

Number of Employees

25,000

Implementation Partners

Liquid Analytics

Line of Business

Sales

Industry

Mill Products

Featured Products

SAP Price and Margin Management by Vendavo, SAP BusinessObjects, CRM Sales

History

It all started with 14 second-hand looms

Since 1878, Mohawk Industries became one of the world’s largest manufactuers and distributors of floor coverings. Through aggressive acquistion and organic growth over the last two decades, Mohawk has built a strong, diversified company that is also the country’s leading recycler of plastic soda bottles (which become polyester carpeting), and one of the largest and most efficient distribution companies in the United States.

 

  • 1878Four brothers from the Shuttleworth family brought 14 second-hand looms from England to Amsterdam, New York, USA.
  • 1908Shuttleworth Brothers Company introduced highly successful Karnak carpeting.
  • 1920Shuttleworth Brothers Company merged with McCleary, Wallin and Crouse to form Mohawk Carpet Mills Inc.
  • 1930Mohawk introduced Shuttlepoint, the first high and low-loop textured design; Raleigh, the first sculptured-effect carpet; and Grosvenor, which by 1950 surpassed Karnak as the all-time Mohawk best-seller.
  • 1956Mohawk and Alexander Smith, Inc. merged to form Mohasco Industries, the largest carpet manufacturer in the world at the time.
  • 1974Mohawk established its Mohawk ColorCenter Dealer program, which is still the cornerstone of the company’s successful retailer/manufacturer relationships.
  • 1989 Company executives negotiated a buyout of the carpet manufacturing component from Mohasco Corporation, which became Mohawk Industries Inc.
  • 1990 Mohawk began a series of strategic acquisitions to expand its technological capabilities, distribution networks, product innovation, customer bases, and marketing capabilities.
  • 2001Mohawk acquired Daltile and American Olean, making the company a leading supplier of ceramic and stone floor coverings and establishing its international manufacturing presence.
  • 2005Mohawk acquired Unilin to establish a leadership in laminate products and a presence in European markets.
  • 2007Mohawk acquired Columbia Flooring to enter the hardwood flooring market and establish manufacturing in Asia.
  • 2010Mohawk entered into a joint venture with Sanfi Ceramics Group to enter the Chinese ceramic tile market.
  • 2012Unilin entered into a joint venture with Arauco to produce laminate flooring in Brazil.
  • 2013Mohawk acquired the Marazzi Group and Pergo to extend its dominance in the ceramic tile and laminate flooring markets.

Business Model

Empowering the sales force to support retailers

For nearly 40 years, the Mohawk ColorCenter Dealer program has been the heart of the relationship between Mohawk Industries Inc. and its retail partners. Before making a purchase, people want to see, touch, and feel the carpet, tile, laminate, or hardwood flooring they will put in their homes or offices. Customers can get those products from numerous retailers, such as major chain stores, locally owned shops, designers, architects, or general contractors.

 

With access to new mobile solutions, Mohawk’s 1,200 sales representatives are using data to better support those retailers, enabling them to provide superior experiences to the end-users.

 

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Creating value for the customer

Success Strategy

Best-in-class representatives

Mohawk Industries relies on their sales force to drive top-line revenues, so the company enables sales representatives with technology to give them a competitive advantage. By simplifying representatives’ access to both customer and pricing information, Mohawk expects to increase profitability. Using data to manage their margins more effectively can also help Mohawk enhance retailer satisfaction with timely specials, improved logistics, and better sales support.

 

“My Mohawk rep knows me better.”

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A new way to manage customer relationships

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To better care for the customer

The Challenge

A more satisfying and lucrative selling experience

The construction industry has been in a downturn for the past four years, challenging the growth of many companies like Mohawk Industries. Because macroeconomic conditions have taken such a toll on top-line growth, Mohawk began reevaluating their sales processes and pricing components, in search for ways to increase sales and reduce costs. And now, with construction on the upswing, the company is looking to take these efficiencies and roll them into even more profitable operations overall.

 

Better margins increase the bottom line by hundreds of thousands of dollars.

 

Enter SAP

Focusing on value and customer satisfaction

By showing Mohawk the capabilities of SAP Price and Margin Management by Vendavo, and the practical application of SAP BusinessObjects Advanced Analysis, SAP helped Mohawk reimagine their sales support processes and technology. With a mobile-enabled SAP CRM Sales application, Mohawk sales representatives can view customer buying histories and other details to provide accurate pricing and on-the-spot ordering. This improves Mohawk’s efficiency, revenue, and customer satisfaction.

 

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SAP brings creative, dynamic and value-focused people to the team

The SAP Experience

Dramatic improvements

With the help of SAP partner Liquid Analytics, Mohawk now has a mobile-enabled SAP CRM solution that they call “Navigator.” Sales representatives can access Navigator via tablet computers to view customer histories, access real-time pricing information, and submit orders.

 

In only six months, 80% of Mohawk’s 1,200 retail sales reps have adopted Navigator. Additionally, members of Mohawk’s customer advisory panel have requested a version of Navigator to address their needs.

 

SAP CRM, delivered by Liquid Analytics, has dramatically improved the Mohawk customer experience, adding great value to our business. It helps our reps focus on the most important items for each individual customer, enabling a more personalized conversation.

- Brian Nooney, Director of Sales Solutions, Mohawk Industries Inc.

 

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The highlight of implementing SAP

Running Better

Efficiency and personalization

Sales representatives at Mohawk estimate that Navigator has reduced their administrative demands by about 30%. Additionally, they report greater productivity because they can access customer information online and offline through the Navigator mobile app. Having access to specific information when they are actually contacting customers helps sales representatives develop more personalized interactions with customers. It’s also helping the sales force tailor sales plans with greater precision.

 

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Enabling our sales force

Today

Full visibility and great expectations

The sales team now has access to a 360-degree view of each customer, complete with analytics and sales tools, right on their tablet computers. Additionally, customer data is available online and offline, which helps increase productivity. Based on preliminary projections, Mohawk Industries expects an increase of US$25 million in sales year-over-year, thanks to investing in SAP solutions.


Journey Ahead

Customer analytics and insight to
drive future business

 

Mohawk Industries plans to extend the capabilities and insights from their sales tools to retailers, which could be enabled by SAP HANA in-memory computing technology. Additionally, Mohawk is testing social media to help understand the demographics of potential customers. Such data can help retailers refine their marketing and advertising efforts. Lastly, as Mohawk increases the capabilities of their retailers, the company is refining and improving this critical business partnership.

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