Manufacturing companies have unique product configurations, pricing, and quoting requirements. This is why they need a CPQ solution that meets their needs.
CPQ software simplifies manufacturers’ products with a visually guided selection process. It also helps reduce ambiguity and improves the visibility of options by showing the relationships between them.
Automation
Manufacturing companies deserve a fully realized technology stack that makes selling easier in an industry where the nuances cannot be distilled into a simple talking point. Manually configuring products, setting prices, and quoting them may be more effective for the team, but doing so puts your business in danger of losing customers to rivals who can offer a more seamless experience.
CPQ software automates the repetitive parts of the sales process, freeing up your team to focus on connecting with customers. It offers a more reliable product configuration process that eliminates errors caused by incompatible options and can validate that all components are available to produce a specific order. It also reduces manual data entry and enables you to offer discounts or special offers without worrying about the impact on your margins.
Once a sale is finalized, your documents are automatically sent from the CPQ to integrated manufacturing applications like ERPs and CRMs, reducing the chance that an error in pricing or document information will delay delivery. CPQ also delivers a unified customer experience and connects your internal systems, making it easy to change products or configurations at the click of a button.
Security
In a world where customers demand personalized experiences, manufacturers need a Quote-to-Cash process just as customized. Conducting product configuration, pricing, and quoting manually or using inadequate tools leaves you at risk of losing customers to competitors who can offer a more seamless buying experience.
A leading CPQ solution allows your sales team to configure products, options, and features to create a customized quote for every customer. These quotes are then automatically sent to the customer for approval. This eliminates the need to rely on manual processes or spreadsheets and makes it easier to ensure that each quotation is accurate.
Pricing is a tricky balancing act in the manufacturing industry. If you set prices too low, you’ll gain a margin. But if you set them too high, customers may stay put.
The best CPQ software offers a range of price-setting features ideal for the manufacturing industry. These include bulk discounts, loyalty savings, free add-ons, and dynamic pricing that reflects availability as other orders clear.
Reporting
Sales data flowing directly into your CRM is vital for sales forecasting in manufacturing. When you use a CPQ solution that works seamlessly with your existing systems, you can get the most out of your data. Look for a CPQ that only requires a little customization or coding, as this can be time-consuming and cause glitches and slowdowns.
Manufacturers can also use CPQ to create and update pricing rules in a centralized platform. This provides a single source of truth about prices and pricing agreements and gives manufacturing companies the flexibility to adjust pricing for individual products or a product family.
As the nuances of manufacturing become more prominent, digital leaders need a fully realized tech stack that supports their processes and customer needs. Manual quoting using subpar tools takes time and can put businesses at risk of losing clients to rivals who can provide a more straightforward, quicker, and more reliable purchasing experience. Manufacturers can use a configurable product quoting system to meet these customer demands and gain a competitive edge.
Integrations
CPQ solutions are designed to be integrated with your critical business applications, including ERP systems, CRM systems, CAD, and eCommerce.
A CPQ solution includes analytics features to help you better understand your sales data. This helps you determine the best strategies for your manufacturing business and improves revenue growth. It also gives you insight into the types of products and pricing structures converting well with your customers.
Another essential feature of CPQ software is the ability to calculate prices based on set rules and factors automatically. This eliminates human error and allows you to create accurate quotes in real time. This is especially beneficial for manufacturing businesses that offer customers multiple pricing options, discounts, and loyalty savings. These features are also crucial in reducing your quoting cycle and improving your overall customer experience.
Pricing
Aside from the digitized visual product configuration capabilities of CPQ, there are also advanced pricing features to consider. These can help businesses optimize and manage prices based on BOM characteristics, production costs, optional features, pricing approval workflows, preferred customer pricing, and discount structures.
The fast and accurate quoting process enabled by CPQ solutions increases the chances that sales leads will become closed-won orders. It also helps companies reduce costs by eliminating errors resulting from incompatible component options and improves overall product and pricing accuracy.
Moreover, CPQ software can seamlessly integrate into ERP and CRM systems without requiring manual data re-entry. This eliminates redundant work and ensures that the most up-to-date information is used for all order processing and shipping. The result is a faster and smoother buying journey that satisfies today’s discerning customers. In addition, it also makes collaborating with suppliers and partners easier. This is essential for the success of a manufacturing business in the modern world.
