CPQ software for manufacturing is one of the best ways to save time and money during the quoting process. For manufacturers of customised products, prototypes and precision engineers, the quoting process can be lengthy and complicated if relying on manual methods, such as spreadsheets. These delays in the quoting process could be costing customers, which is where manufacturing CPQ comes in.
If you’re seeking a streamlined solution for the quoting process, which offers a healthy Return on Investment, implementing Configure, Price, Quote (CPQ) software for manufacturing is key.
What Is Manufacturing CPQ Software?
Manufacturing CPQ software is an automation tool for manufacturing companies that can help streamline the sales process and create faster, more accurate quotes. CPQ tools work integrally with your CRM and ERP platforms to streamline the sales process, making it more responsive and less reliant on estimated figures.
Even where the quoting process involves many variables, such as production costs, customisation options, quantities, and loyalty discounts, CPQ software for manufacturing produces precise quotes quickly, so valuable time isn’t lost and your customers head to other suppliers. Using a rules-based approach, CPQ software delivers error-free automated pricing, building confidence among your customers that the quote they receive is reliable.
CPQ for Manufacturing Key Takeaways
- CPQ software for manufacturing automates complex processes and helps manufacturers replace manual spreadsheets with faster and more accurate workflows
- By applying rules-based pricing and configurations, CPQ reduces errors, shortens quote turnaround times and improves customer confidence
- CPQ integrates with existing CRM, ERP and ecommerce platforms to streamline sales while supporting selling across multiple channels and business growth
Why Is Manufacturing Quoting Becoming More Complex?
Quoting in the manufacturing industry rarely involves choosing a standard product and applying a fixed price to it. Most sales teams need to account for a range of variables e.g. materials, scope, production methods, order quantities, delivery requirements and many more, each one of those affecting how much the final product will cost.
Many manufacturing businesses still handle this by using a combination of ERP data, input from production, engineering and finance teams, spreadsheets and previously issued quotes which can (understandably so) make the creation of one single quote a lengthy process. This is especially true for expanding businesses where product ranges and customisation options are growing. At the same time however customers are increasingly expecting quick, accurate responses.
CPQ software for manufacturing businesses addresses this by bringing together product configuration, relevant pricing rules and the creation of a professional quote into one streamlined process.
Understanding CPQ in a Manufacturing Context
CPQ (Configure, Price, Quote) helps manufacturers turn complex product requirements into quotes that are accurate and commercially viable and it achieves this through three connected stages:
- Configure: Sales teams select the product features, components, materials etc required by the customer based on predefined engineering/manufacturing rules to prevent incompatible combinations and make sure the final configuration can be produced.
- Price: The system calculates the accurate price of the configuration based on its characteristics while factoring in any relevant discounts and customer-specific pricing if applicable, helping maintain consistent margins even when every order is different.
- Quote: The software uses the agreed configuration and pricing to create a customer-ready and professional quote often including product specifications, itemised costs etc and since the quote is based on validated information, there’s no need to spend any time double-checking specifications or manually amending anything.
Why Should Manufacturers Invest in CPQ Software?
In the cut and thrust world of business, customers want to do product configurations and get accurate pricing options quickly. Good CPQ software can fulfil the online needs of customers. Here’s why manufacturers should invest.
1) CPQ Boosts Sales For Ecommerce Manufacturers
When selling customisable, intricate, manufactured products, there are often a huge number of characteristics involved. This means that there are countless product configurations that customers can opt for, which all must be priced correctly.
On standard B2C e-commerce platforms, it’s impossible to make these kinds of products simple to customise and purchase. CPQ software for manufacturing can be integrated into B2B e-commerce platforms, to optimise and support the sale of intricate products. This is a boon to manufacturers struggling to convert website visitors into customers.
2) CPQ Reduces Costs By Eliminating E-commerce Ordering Errors
Manufacturing sales CPQ converts manual, laborious e-commerce ordering processes, which are vulnerable to errors into smooth, efficient B2C-style experiences. CPQ software for small manufacturing businesses can generate a substantial ROI because it provides fast and accurate quotes to customers for intricate products. This makes manufacturing processes more reliable, lowering expenses.
3) Prevents B2B Customers Abandoning Difficult To Use Websites
Manufacturing CPQ for small businesses, when properly designed and implemented, makes it easy to customise intricate products. This is crucial to the success of B2B ecommerce. If an online customer cannot locate the products they want, or if prices or price reductions are not clearly displayed, this customer could leave your website to check out your competitors. Leveraging the power of CPQ capabilities helps your entire team to increase sales, because this software displays information that is up-to-date.
What Are the Benefits of Using CPQ Software for Manufacturing?
Businesses that implement CPQ solutions deliver accurate, reactive quotes in minutes, snatching orders from under the noses of their competitors. Bottlenecks are eliminated and sales staff are freed from manual work to spend more time focusing on securing lucrative orders.
The growing reliance on CPQ is reflected on a market level as CPQ has now become a priority for most organisations across Europe, with the UK among the key countries driving adoption.
So, what are the main benefits of CPQ software and how could it revolutionise your business’s sales strategy?
Accurate Pricing With No Errors
CPQ software improves process automation and supports the accurate pricing of products and services, enabling your manufacturing sales team to create attractive tailored solutions for customers without the need for double checking. With price errors eliminated, you won’t face disgruntled customers and your brand will retain its reputation for honesty and accuracy.
Faster Quoting
Automating the quotation process significantly reduces the time spent creating contracts for customers, so sales staff can focus on chasing more leads in less time. In the cut-throat business world, sellers who deliver professional quotes quickly are more likely to secure orders; however, relying on Excel spreadsheets and multiple files can be a significant barrier to a timely response. CPQ software can provide accurate quotes in minutes, even if your business has a complex configuration of products and services.
A Professional, Personalised Service
Rarely do customers fit pre-determined criteria, so flexibility is key when providing attractive quotes that meet their unique needs. CPQ software for manufacturing allows you to provide personalised quotes, making discrete adjustments or applying discounts as necessary. By applying best practices consistently and generating quotes in a uniform way, your brand will benefit from a professional image that treats each customer like an individual.
Efficient Organisation Through CRM Syncing
Syncing your CPQ software with your CRM offers huge benefits to the way your manufacturing business operates. Integration removes the need to create data entries separately on each platform, saving time and preventing needless duplications. Sales staff can retrieve vital data quickly to ensure quotes are accurate and prompt, access inventory information, and make informed decisions so that quotes are competitive yet affordable.
How Can CPQ Software Streamline Manufacturing Quotes?
1) Visual Tools That Simplify Quotations
With CPQ, both suppliers and customers benefit from smart, automated visual selling. This enables technical sales teams to configure, price, and quote complex products and customers to gain a better understanding of the options available.
2) Mass Customisation
The ability to customise products to their exact requirements is vital for many customers, who seek responsive service and quick quotations. Without a manufacturing CPQ solution, creating quotations with multiple customisations is a long-drawn-out process.
3) Unlimited Design Options
Manual quoting methods discourage manufacturers from offering many design options, as they realise that formulating a quotation will take time. With CPQ tools in place, customers can be offered the full range of customisations in the knowledge that the quotation process won’t be complicated.
4) Complete Visibility
With a CPQ platform, customers benefit from full access to the proposal and individual costings. As a manufacturer or supplier, you’ll be able to see when clients have received and viewed the quote and any relevant actions, so you can stay abreast of their decision-making and provide additional support if needed.
5) Accurate Pricing Across Different Sales Channels
Taking advantage of different sales channels is vital to profitability in competitive markets. CPQ software simplifies the process of multi-channel listings without the need for manual intervention. Quotes are consequently consistent and accurate and, as a supplier, the speed and simplicity of quoting reduces the time to payment.
Which KPIs Does Manufacturing CPQ Software Help Improve?
CPQ software for manufacturing companies positively impacts a vast array of KPIs (Key Performance Indicators) that can help you track how effective your quote-to-order process is. Here are some of the main KPIs that CPQ can support improvements in and are useful to track to assess the software’s impact on your process post-implementation:
- Quote Turnaround Time: Fewer manual steps mean faster quotes
- Sales Cycle Length: Less back-and-forth shortens the sales cycle
- Quote Accuracy: Reduced misconfigurations and pricing errors
- Conversion Rate: Faster, more accurate quotes improve client confidence
- AOV (Average Order Value): Guided selling enables upsell / cross-sell
How Does CPQ in Manufacturing Influence Business Growth?
CPQ can be a game changer for manufacturing businesses looking to or in the process of expanding as it allows sales teams to handle a higher volume of enquiries more quickly and without creating a corresponding amount of admin work. By automating the three stages of creating a quote, manufacturing CPQ helps sales teams respond sooner while also reducing errors and thus resulting in improved customer satisfaction.
CPQ software for manufacturing businesses can support growth by:
- Shortening sales cycles
- Increasing quoting capacity
- Improving conversion rates
- Protecting margins through consistent pricing
- Making the introduction of new products/ranges more efficient
- Identifying popular configurations/sales trends using centralised data
Choose Quintadena for Your Manufacturing CPQ Software
Quintadena are UK-approved vendors and implementation partners for QuoteValet, the most robust way of providing quotes to your customers. With the entire process from price request to acceptance managed online, QuoteValet will simplify your quotation system for you and your customers.
To find out more about our manufacturing CPQ software, please get in touch online or call us on 0121 669 1111.
