What Makes a Full-Service CPQ Solution

With cloud-based CPQ software, manufacturers can configure, price and quote custom products on an accelerated timeline compared to manual quoting.

Without CPQ, the configuration and quoting process looks like this: A customer calls a manufacturer’s sales department and asks for a specific product to be made. The sales associate captures the requirements and then sends them to the engineering department to determine if it’s possible to make such a product.

Engineering then works to create a bill of material (BOM), including all the items needed to make the product. The BOM helps calculate the cost of manufacturing. From there, a quote is generated, deriving the price to ensure profit for the manufacturer. If any part of this process requires a change along the way, such as the customer wanting a different material or size, then the process has to start over. This could mean weeks of back-and-forth before manufacturing can begin.

With CPQ software, the entire process is streamlined and optimized. The software can be set up to control which product options are compatible and generate a bill of material instantly. That way, when a customer wants a specific product, the sales associate can enter the specs into the software and provide a quote in just minutes instead of days.

The software also allows for full mock-ups of the product to be created, including 3D models that can be used as a sales collateral and for customer approval. Furthermore, when the customer places the order, the quote is converted to the BOM, along with the other order-supporting data (routings, newly created items and parts), and is passed to the manufacturer’s ERP for fulfillment. This helps to improve efficiency in the process and avoid errors with the product.