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How Does Manufacturing CPQ Software Benefit Your Business?

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KB Max

Are you sick of dealing with manual manufacturing processes that don't work well and slow down your business? It's time to consider the power of manufacturing CPQ software. With this new technology, you can streamline and improve your manufacturing processes, saving time, reducing mistakes, and making more money.


This article will discuss the benefits of using CPQ software for manufacturing and how it can change your business. From improving quoting accuracy and reducing lead times to simplifying complex configurations and boosting customer satisfaction, the benefits of manufacturing CPQ are vast. 


So, keep reading if you want to see real changes in how you make things.


What does CPQ software for manufacturing mean?

Manufacturing configure price quote (CPQ) software is a powerful tool that helps companies streamline their sales and manufacturing processes. This software automates the process of configuring, pricing, and quoting complex products, making it faster and easier for sales teams to provide customers with accurate, customized manufacturing quotes.


CPQ software makes it easy and quick to set up complex custom products. Using visual product configurators, sales teams and customers can craft the perfect product using 3D models and a wide range of available options. This makes it easier for sales teams to get accurate quotes from manufacturers and helps customers understand and picture the products they are thinking about buying, which increases their chances of making a sale.


In addition to configuring products, manufacturing CPQ software calculates prices in real-time as users change their product configurations.This dynamic pricing helps customers stay within their budget and make more informed purchasing decisions. It also saves sales reps a lot of time and keeps them from making costly mistakes.


Manufacturing CPQ software makes all the documents and files that the engineering department needs, like CAD files and other technical specifications. CAD automation streamlines the engineer-to-order process and helps ensure that products are produced to the customer's exact specifications without excessive back and forth between the sales and engineering departments.


Why CPQ is important in manufacturing

CPQ software has the potential to change your whole manufacturing process, from getting new customers to making the product. From streamlining complex configurations to improving pricing accuracy, the benefits of using CPQ in manufacturing are numerous. Here are the main ones to consider:


Feature: The visual configuration makes the buying process completely immersive.

Result: A higher win rate with less work from salespeople.


A good CPQ should have a visual configurator that creates a real-time 3D image of the product configuration. This visual representation helps sales reps "show, rather than tell" the end product to customers, conveying complex information effortlessly and easing any initial hesitation buyers may have about purchasing from your brand. 

Visual product configuration can help increase win rates in a number of ways.

  1. It improves the customer's experience by giving them a clear picture of the product they are considering buying. This helps reduce confusion and uncertainty, leading to more confident purchasing decisions.
  2. It lets sales reps set up products quickly and easily, reducing the time it takes to close a deal. 
  3. It cuts down on mistakes in the configuration process, so there is less back and forth and less waiting.


Feature: Rules Engine With No-Code.

Result: Automation of Different Sales-to-Manufacturing Processes for Improved Productivity and Lower Costs.


Do you or your team find that you always have to do the same things repeatedly? If so, why not automate them and save time each day? Modern CPQs have a built-in no-code rules engine that lets you set rules for business processes even if you don't know how to code.


For instance, if the required spare parts are not in stock, you can utilize the rules engine to prevent customers from choosing a particular configuration. You can also set rules to adjust the discount rate based on external factors like raw material costs and availability. 


Utilizing the no-code rules engine to design pricing strategies could boost conversions if your conversion rates are below average. But the rules engine is not limited to just pricing–it can be applied to various processes across your business, such as visual configuration (which parts can be combined and which can’t), quote generation, and production documentation generation.


Feature: Integrations That Are Seamless

Result: Improved cooperation and efficient data exchange


Modern CPQ solutions interface with your other business-critical software platforms to automatically exchange crucial data. These integrations increase efficiency by allowing a frictionless flow of information between tools and departments.


One such integration is CPQ and ERP (Enterprise Resource Planning) software. Integrating these systems ensures your CPQ always has access to inventory levels and prices and can update the sales records in your ERP in real-time. 


CRM (Customer Relationship Management) and CAD (Computer-Aided Design) software are two more platforms that CPQ systems interact with. CAD integration is a game-changer. Once connected, CPQ can automatically create CAD files whenever you receive an order, greatly reducing the workload on the engineering department.


Feature: Website Embedding

Result: Revenue Growth with Fewer Sales Work


Your visual configurator should be able to be included in your eCommerce website thanks to a CPQ. The buyer lands on your website, selects a configuration based on a visual inspection, and places an order immediately. The buyer has all the information necessary to show the product to the purchasing committee or make an order without assistance from a sales representative, thanks to the CPQ's real-time delivery of a product depiction and price.


By including a visual configurator on your website, you set yourself apart from other businesses. 52% of B2B buyers report frustration with their online buying experience. You may reduce this irritation by enabling self-serve while the competition focuses on a lengthy, disjointed salesperson-led buying trip.


Feature: Cloud-Based

Result: Flexible, Always-on, Remote Access


The most effective CPQ software for manufacturing is cloud-based, so your staff members may access CPQ from any location. They can work with maximum productivity and efficiency, so long as they have an internet connection. With this flexibility, you may hire from a worldwide talent pool, raising the caliber of your team without raising labor costs.


Are You Prepared to Invest in Manufacturing CPQ Software?

In conclusion, CPQ software implementation can greatly enhance productivity and efficiency in production.

  • Visual product configuration improves the customer experience while requiring less manual work from sales personnel. 
  • Processes are streamlined, and productivity is increased via automation. 
  • Collaboration and communication between individuals and teams are improved via integrations with core systems. 
  • Buyer autonomy is increased via B2B e-commerce, shortening the low-touch sales cycle.


The best part is that because the best CPQ software is cloud-based, you and your team can benefit from these productivity improvements from anywhere in the world, regardless of where your clients and staff are situated.


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