Manufacturing companies face many challenges with quoting, pricing and ordering. These include inconsistent discounting and pricing, informal approval processes, and manual data entry. CPQ software allows manufacturers to speed up the quoting process through automation, reduce errors, and create valuable insights for the company. This article will discuss how.
Product Configuration
The product configuration capabilities of CPQ systems allow salespeople to offer customers the exact options and bundles they need. Subject matter experts on the products can determine these configurations and enter them as rules in the CPQ software so that all salespeople can access them. It makes the sales department more solution-oriented and customer-centric. It improves sales efficiency and productivity while reducing the number of incorrect quotes that can damage brand reputation and hamper future sales.
Many companies use CPQ from providers like Tacton.com to help salespeople configure and price complex products and services. These include IT and technology-enabled tech services, telecommunications, transportation, heavy equipment production, and other industries. CPQ software is often designed to manage the complexity of these products and services, and it offers several key advantages for sales teams, including guided selling, rules-based configuration, optimized pricing, proposal management, eSignature integration, and contract generation.
CPQ is also used to ensure the quoted prices are accurate and fair. Even seasoned salespeople can’t have every possible permutation of a configurable product committed to memory, so software is needed to automatically calculate the price for the precise configuration the salesperson offers. The right CPQ system will provide the visibility necessary to avoid over-discounting, which can have detrimental effects on sales performance and profitability in the long term.
Pricing
Determining product specifications and price takes a lot of time for manufacturing organizations. It is a complicated task involving speaking to engineers and machinists, reviewing the bill of materials, checking production schedules and costs, and providing customer quotes. CPQ is an automated solution that reduces this complexity and saves manufacturers time. It also helps them stay competitive and increase revenue.
Misquotes are expensive for a manufacturing company and can damage customer relationships. A CPQ solution can help eliminate these issues by ensuring the quotes are accurate and meet all customer requirements. It is particularly important when working with high-tech products, as these features are often complex and costly to produce.
CPQ software enables sales teams to create accurate and customized quotes for each customer. The sales team can enhance client satisfaction and customer service standards thanks to it. It can also be used to gain valuable information about customer preferences to help with future product development.
Sales Collaboration
Using CPQ, you can automate the quoting process so that your team can produce more quotes per employee without compromising quality. You can also deliver quote revisions to clients faster, reducing lead times. This increased capacity enables you to meet customer demands for quick, accurate responses even during busy periods.
CPQ reduces the time your sales team spends generating and approving quotes, giving them more opportunity to focus on selling. It boosts sales efficiencies, increases win rates, and improves overall margins. Choosing a CPQ system that can be configured to your business needs and product catalog while remaining user-friendly and easy to navigate is important. Excessive customization can cause resistance during adoption, so it’s essential to balance tailoring the software to your unique needs and keeping it simple enough for your reps to use effectively.
Your sales team’s productivity will increase, and they’ll have more time to spend cultivating relationships with prospects thanks to the automation of sales quoting. You can also leverage a visual configurator to enable buyers to create customized product configurations online for a self-serve purchasing experience or for your sales team to use with customers in the field. Streamlining a complex quoting process with intelligent pricing and configuration rules, kitting, and visual CPQ empowers your sales teams to become trusted advisors for their buyers.
Inventory Management
In addition to streamlining quoting and ordering, CPQ software also optimizes manufacturing. A CPQ solution integrated with ERP systems provides real-time production scheduling and inventory data. It eliminates delays and empowers sales teams to deliver accurate production estimates, reducing operational costs. The CPQ tool also streamlines the ordering process by automatically creating shipping documentation. It is particularly helpful for larger manufacturers with a complex product lineup. Additionally, many CPQ solutions include visual product configuration capabilities in 2D and 3D, which can help with product design, engineering, and customer sales meetings. CAD drawings, bills of materials (BOMs), and other documents can all be created with a button.
CPQ software can also improve pricing management by allowing companies to create multiple price lists based on criteria like product type or customer segment. It enables manufacturers to maintain profitability while delivering discounts and promotions that drive revenue growth. While the sales department often uses CPQ software, it can be a valuable asset. It can bridge the gap between departments by ensuring consistent processes and standards across all teams. It can also provide information that is easily accessible to other departments, including finance, legal, and manufacturing. In turn, a more unified and customer-centric team is created.
