Maximizing Profitability With CPQ Software for Manufacturing

Last Updated:
June 19, 2023

Maximizing Profitability With CPQ Software for Manufacturing

Manufacturers rely on partners to sell their products. CPQ software for manufacturing solutions allow manufacturers to manage partner sales processes by integrating price lists, product configurations, and quotes with their ERP systems.

Using a CPQ solution to automate the quote-to-order process ensures that sales and engineering teams communicate accurate prices and costs to their customers. It helps to protect margins and maximize profitability.

Automated Quotes

In a competitive manufacturing environment, having an efficient quote-to-cash process is crucial. Manual processes and inadequate tools for product configuration, pricing, and quotes can cause errors that delay orders. It puts your business at risk of losing customers to competitors who offer a more seamless sales experience.

CPQ software for manufacturing can create a more streamlined sales process. CPQ automates quoting, increases capacity, and delivers quotes more quickly. It also helps ensure that your team can deliver accurate professional quotes. CPQ software enforces engineering rules, including how products can be configured and priced, so you know your customers receive a quote that complies with company standards.

CPQ software for manufacturing also makes it easy to configure and sell products online with a customer-friendly shopping experience, including guided selling, visual commerce, and self-service selections. Plus, advanced CPQ technology delivers higher performance to handle complex products with multiple combinations of options. It allows your team to build quotes faster and give customers an exceptional experience that inspires loyalty.

Reduced Errors

CPQ software automates the entire quoting process. Reduces the number of manual steps that need to be taken, reducing errors. The software can also ensure pricing rules are consistently applied across all sales channels, markets, and customer types. It can help avoid costly mistakes in negotiating with customers.

The software also reduces the time it takes to configure products and generate quotes. It allows sales reps to spend more time interacting with their clients and building relationships. In addition, CPQ software can provide real-time visibility of product configurations and pricing in 3D, allowing for more accurate forecasting and analysis.

Using CPQ software can also help reduce manufacturing errors. It is crucial because manufacturing errors can cost the company millions of dollars in lost revenue. Errors can occur for various reasons, from inaccurate production data to miscommunication between employees or suppliers. By implementing CPQ software, you can eliminate many of these errors before they cause damage to your business. In addition, the software can help you identify and address issues that may lead to costly manufacturing errors in the future.

Quicker Sales Cycle

Using Configure, Price, Quote (CPQ) software can help streamline the sales process. It reduces the number of people needed to manage sales inquiries and quotes, reducing time and effort.

It can also speed up the sales cycle by allowing customers to self-serve and generate quotes. It eliminates the back-and-forth between salespeople and customers, reducing cycle times and increasing customer satisfaction.

CPQ software helps manufacturers configure products and service contracts accurately. It can limit choices to those that make sense for the business and automatically constrain options to eliminate errors from incompatible combinations. It makes quoting faster and more reliable.

It can also automate pricing based on BOM characteristics, production costs, and optional features to eliminate the need for human error. CPQ can also create rules to determine the pricing based on channel selling structures, discounts, and preferred customer pricing to maximize revenue. The result is a streamlined sales process that improves productivity and profitability. It makes the manufacturing industry more resilient to economic downturns. It also increases customer satisfaction and loyalty.

Increased Customer Satisfaction

For manufacturing businesses, providing customers with accurate and consistent quotes is essential. CPQ software automates the process, allowing companies to provide their clients with a smoother sales experience while saving time and money on manual processing.

Manufacturers often use a variety of technical files to communicate product requirements, including prints, models, spreadsheets, and more. However, when those documents are not unified, and the quoting process is slow, it can result in inaccurate quotes that can impact both the customer experience and the business’ margins.

With CPQ solutions, the system automatically determines pricing based on product configurations and other factors. It allows sales teams to focus on negotiating with customers and ensuring their quotes are accurate and competitive.

CPQ software streamlines the sales process and eliminates error-prone manual processes, resulting in increased sales efficiency, more accurate quotes, and improved customer satisfaction. Manufacturers can build customer trust and loyalty while maximizing revenue and profitability with a faster, more streamlined process and optimized pricing structures. Invest in a modern CPQ solution to meet your manufacturing needs and ensure success in the digital economy.

Increased Revenue

With a CPQ solution, manufacturers can improve customer loyalty with a more convenient self-service option for ordering custom products and services. It allows customers to easily view product options, bundles, and pricing for a personalized experience that fits their needs.

CPQ software automates the sales process using pre-programmed rules to generate accurate price quotes. These rules consider discounts, quantities, products and service options, customizations, incompatibilities, and more to create an accurate, dynamic sales quote.

Compared to traditional manual quoting, this can cut the time to complete a quote by 34%. It frees sales reps to focus on selling and building customer relationships, driving increased revenue. Moreover, the ability to customize products and adjust prices systematically can maximize profit margins. CPQ software for manufacturing can also help reduce revenue loss from misquotes.

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