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4 Benefits For Manufacturers That Upgrade to CPQ Software

When looking at switching from a manual product configuration process to an automated CPQ (Configure, Price, Quote) software, some hesitancy — even pushback — is inevitable, but it’s also well worth the discomfort.

Making a major change in the way your business operates can be a scary proposition. Executives considering upgrading processes that have been in effect for years — or even decades — need to have confidence that it will be worth the disruption, not to mention the cost.

4 Benefits of CPQ

CPQ has a transformative effect on every organization’s sales process, but the benefits extend far beyond this one department. Here are the top four biggest changes you can expect from implementation:

1. Improved Product Management and Engineering

With manual configuration processes, the sales team depends on engineers to review and approve every single configuration for viability and pricing. CPQ solutions free up product
managers and engineers from this process entirely, so they can spend more time making better products.

CPQ software can also help with product management and engineering by analyzing CPQ data to decide where to spend money on the research and development of new products and product improvements. By looking at which combinations of product options are popular and which are not, your engineering department can better understand what customers want and
design accordingly.

Product managers can also use these data points to determine how to extend or expand the reach of the company into new regions or niches. If a product manager can see the opportunity to retool or expand a product line to reach a new market, they can widen the customer base and drive new revenue.

2. Streamlined Operations

Your company is probably already using an ERP or CRM system. The right CPQ solution can seamlessly integrate with your existing business systems and enhance their capabilities. CPQs
data-tracking capabilities can help you identify your best-selling products and ensure they are properly stocked and shipped for your suppliers.

For those companies that produce their own parts and supplies in-house, this same data can be used to analyze what’s needed in advance of orders so there’s less “lag time” between the order and the actual production of the configured items.

 

THE ULTIMATE GUIDE TO CPQ

Unlock the secrets to turbocharging manufacturer operations! Dive into our comprehensive guide, where we demystify CPQ, making optimization a breeze. Click now and revolutionize your manufacturing process.

THE ULTIMATE GUIDE TO CPQ

Unlock the secrets to turbocharging manufacturer operations! Dive into our comprehensive guide, where we demystify CPQ, making optimization a breeze. Click now and revolutionize your manufacturing process.
3. Increased Finance Visibility
Your financial and accounting departments will appreciate the level of data that a CPQ solution can generate for your company. Pricing, revenue, and cash flow data will inform your finance team of exactly how the company is doing in detailed, real-time reporting. This data can show predictive trends, such as downturns, as well as increases in sales and orders so you can know what to expect at regular intervals. This, in turn, can help your company prepare for those changes in your revenue streams.
4. Higher Marketing ROI
The last area where CPQ can help you (outside of sales) is in your marketing department. We live in the era of “big data,” and the data that comes from a CPQ system can help in a number of ways. CPQ software allows you to use data to drive your decision-making. Today, business decisions shouldn’t be made solely on a “gut feeling.” Solutions need to be backed up with numbers, showing that an idea will work and provide a measurable return on investment. CPQ provides insight into what’s currently selling in the market, so you can then look for opportunities in other areas. Marketing can also use sales data to spot product and market trends before your competition — positioning you to be the first company to offer a specific type of product or configuration.

Choosing the Right CPQ Software

Implementing CPQ at your company has an impact far beyond sales. Expect improvements to marketing, finance, operations, and engineering, as well as a treasure trove of data to drive new revenue. 

Schedule a demo of Revalize to experience the benefit of CPQ for yourself.

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