Are you tired of struggling with inefficient, manual manufacturing processes that are holding your business back? It's time to consider the power of manufacturing CPQ software. With this innovative technology, you can streamline and optimize your manufacturing operations, helping you save time, reduce errors, and improve profitability.
In this article, we'll explore the benefits of using manufacturing CPQ software and how it can transform the way you do business. From improving quoting accuracy and reducing lead times to simplifying complex configurations and boosting customer satisfaction, the benefits of manufacturing CPQ are vast.
So, if you want to see real improvements in your manufacturing, read on.
Manufacturing configure price quote (CPQ) software is a powerful tool that helps businesses streamline their sales and manufacturing processes. This software automates the process of configuring, pricing, and quoting complex products, making it faster and easier for sales teams to provide customers with accurate, customized manufacturing quotes.
CPQ software makes configuring complex custom products quick and easy. Using visual product configurators, sales teams and customers can craft the perfect product using 3D models and a wide range of available options. This makes it easier for sales teams to create accurate manufacturing quotes and helps customers better understand and visualize the products they are considering purchasing, boosting win rates.
In addition to configuring products, manufacturing CPQ software calculates prices in real-time as users make changes to their product configurations. This dynamic pricing helps customers stay within their budget and make more informed purchasing decisions. It also saves sales reps a tremendous amount of time and eliminates costly errors.
Manufacturing CPQ software generates all necessary documents and files for the engineering department, such as CAD files and other technical specifications. CAD automation streamlines the engineer-to-order process and helps ensure that products are produced to the customer's exact specifications without excessive back and forth between the sales and engineering departments.
CPQ software has the potential to revolutionize your entire manufacturing process, from customer acquisition all the way through to production. From streamlining complex configurations to improving pricing accuracy, the benefits of using CPQ in manufacturing are numerous. Here are the main ones to consider:
An effective CPQ should include a built-in visual configurator, which generates a real-time 3D image of the product configuration. This visual representation helps sales reps "show, rather than tell" the end product to customers, conveying complex information effortlessly and easing any initial hesitation buyers may have about purchasing from your brand.
There are several ways in which visual product configuration can lead to increased win rates.
Do you find that you or your team are constantly performing the same tasks over and over again? If so, why not automate them and save time each day? Modern CPQs include a no-code rules engine, a built-in feature that allows you to set rules for business processes without needing to know how to code.
For example, you can use the rules engine to disallow buyers from selecting a particular configuration if the necessary spare parts are not available in inventory. You can also set rules to adjust the discount rate based on external factors like raw material costs and availability.
If your conversion rates are below average, using the no-code rules engine to implement pricing tactics may help increase conversions. But the rules engine is not limited to just pricing–it can be applied to various processes across your business, such as visual configuration (which parts can be combined and which can’t), quote generation, and production documentation generation.
Advanced CPQ solutions integrate with your other business-critical software systems to automatically exchange critical data. These integrations increase efficiency by allowing a frictionless flow of information between tools and departments.
For example, you can integrate your CPQ with your ERP (Enterprise Resource Planning) system. Integrating these systems ensures your CPQ always has access to inventory levels and prices and can update the sales records in your ERP in real-time.
CPQ systems also integrate with other platforms like CRM (Customer Relationship Management) and CAD (Computer-Aided Design) software. CAD integration is a game-changer. Once connected, CPQ can auto-generate CAD files whenever you receive an order, saving the engineering department considerable time.
A CPQ should allow you to embed your visual configurator into your eCommerce website. The buyer lands on your website, selects a configuration based on a visual inspection, and places an order immediately. The CPQ delivers a product rendering and quote in real-time, which means the buyer has all the information they need to present the product to the buying committee or place an order without help from a sales rep.
Embedding a visual configurator in your website differentiates you from competitors. 52% of B2B buyers report frustration with their online buying experience. You can ease this frustration by facilitating self-serve while the competition relies on a slow, fragmented salesperson-led buying journey.
The best CPQ software for manufacturing is cloud-based, which means your employees can access CPQ anywhere. They can work with maximum productivity and efficiency, so long as they have an internet connection. This flexibility lets you tap into a global talent pool when you hire, increasing the quality of your workforce without increasing the cost of salaries.
In conclusion, implementing CPQ software for manufacturing can significantly improve efficiency and performance.
Best of all, the cloud-based nature of the best CPQ software lets you and your team experience these efficiency gains from anywhere in the world–wherever your customers and employees are located.