Time is one of your most valuable resources, yet many manufacturers still waste time taking orders manually without the assistance of CPQ software. Take this example of a typical quoting process:
You manage a small, independently owned manufacturer of specialty delivery vehicles. A sales rep receives a call from a company looking to order ten trucks for their fleet. Your rep goes through all available options with the customer, explaining your capabilities.
Then, the rep contacts the manufacturing floor and talks to the engineers and machinists to assemble a bill of materials (BOM). Only at this stage can your team determine if they can meet the customer’s requested specifications.
Of course, as this process takes place, someone has to record all information, determine what customizations are required, and apply those pricing rules to the quote. After all this, it could take days to generate a quote.
It’s tough to wait for a major order that can make or break your company’s bottom line — and each day that passes is another day your potential customer could switch to a competitor. Even after you deliver the quote, the customer could return to update their specifications or alter the product mix, forcing you to start the quoting process again.
Manufacturing companies use CPQ software to produce quotes and process orders for configurable products. This quoting solution automates repetitive parts of the ordering process, giving you time to focus on your customers. It also connects your internal systems, providing you with the visibility to make decisions on order requests at a moment’s notice.
Let’s revisit the scenario at the beginning of this article in an environment where CPQ software is already at work:
You receive a call from a company looking to order 10 trucks for their fleet. With CPQ software, you walk your customer through the options available with accurate, up-to-date information. Since you have all product variations and customization choices, you might even be able to upsell to configurations they didn’t know they wanted.
Your CPQ software knows all the rules for configuring your trucks, eliminating guesswork. As they select options, the price is updated in real-time while an interactive 3D model of the product reflects changes, showing the customer how their selections will look to ensure it meets their requirements.
Once configuration is completed, you generate a quote at the push of a button and email it to the customer. Discounting rules allow sales reps to offer discounts within boundaries established by management, or reps can send more aggressive pricing terms to managers for approval. You can do all of this in hours or even minutes.
Once the order is won, the order details, including detailed BOMs, can be sent automatically from your CPQ to integrated manufacturing applications, like ERPs and CRMs, without any data re-entry or manual intervention. Time saved is time gained.
The answer is everyone. Both the customer and your business are better off when you use an automated quoting solution.
Manufacturers are transforming their businesses with CPQ.
We explore how they've maximized efficiency by getting the most out of their sales channels.
Chances are you’ve heard about CPQ (Configure, Price, Quote) solutions as a game-changer for many manufacturers. But some organizations are still on the fence about whether they need to make the switch.
But the biggest reason you should consider an automated CPQ solution is that it will allow you to grow your business by making the sales process quicker, easier, and more efficient. Contact a representative today and schedule a demo to see how CPQ can work for you.