Secret to Scaling Your Manufacturing Company with CPQ Software

Need Of CPQ Software

With the pace of life today, in the industrial marketplace, precision and speed are paramount to success. But 60% of manufacturers are held back by time-consuming quoting procedures and sales inefficiencies that mean lost sales and annoyed customers. Old-school sales practices are spreadsheet and manual approvals based, with the inability to deal with multi-component products and track variable costs. If your company still practices these vintage methods, the time has come for an overhaul.

CPQ software streamlines quoting, pricing, and product configuration, making manufacturing processes smoother and more efficient. It eliminates the possibility of human errors, accelerates communication, and seamlessly integrates with your current systems. Manufacturers can cut down on quoting time, close more deals quickly, ensure customer satisfaction, and increase profits with CPQ.

Let's see how CPQ software can change your business and provide you with a competitive advantage in the manufacturing sector.

What is CPQ Software?

A CPQ software is a tool helps sales teams create accurate quotes quickly, customize products based on customer needs, and apply pricing rules without mistakes. It reduces complicated product configurations, maintains fixed pricing, and accelerates the sales process.

A product configurator decreases back-and-forth communication between sales and production, enhancing response time and preventing miscommunication. Using CPQ, companies can quote only products they can produce, cutting down on order changes and cancellations.

Benefits of CPQ Software

1. Faster and Reliable Quotes

Manual quoting processes are time-consuming, and mistakes can occur. But a manufacturing quotation software automates price and availability updates, which guarantees:

• Real-time, error-free quotes
• Consistent pricing and discount
• Improved response times, resulting in faster deal closures

By combining CPQ with ERP and CRM systems, companies can design an automated process from first customer inquiry to final order acceptance. This eliminates administrative overhead and enables sales teams to utilize their time for establishing good customer relationships instead of doing manual calculations.

2. Effortless Product Configuration

Complex manufacturers typically must contend with tailored product configurations, which may be intricate. CPQ software streamlines this process by:

• Allowing only compatible parts to be chosen
• Conducting real-time feasibility tests
• Removing the necessity for engineering approvals

By offering an interactive product configurator, CPQ enables customers to view their selections in real time, gaining confidence in their purchase decisions. This also minimizes post-sale adjustments, reducing production delays and costs.

3. Smart Pricing Strategies

Pricing in the manufacturing space is complex with constant changes in material prices and supply chain functionality. CPQ software assists businesses by:

• Automating the approval of discounts
• Implying pricing regulations depending on the type of customer, volume or location
• Modifying the price in real-time depending on the cost adjustment

This prevents both underquoting (lowering profit margins) and overcharging (scaring off prospective buyers). Based on AI-driven insights, CPQ software can also suggest best-practice pricing plans, maximizing revenue potential while being competitive.

4. Getting Sales and Production Teams Aligned

One of the biggest manufacturing challenges is keeping sales and production teams aligned. CPQ software closes this gap by:

• Creating accurate bills of materials (BOMs)
• Verifying approved configurations align with production capabilities
• Eliminating miscommunication delays

By integrating CPQ with existing systems, companies can ensure all teams are working with current data, removing inconsistencies and streamlining order fulfilment.

5. Improved?Customer Experience

Today's?customers?demand?speed and?precision. CPQ?enhances?the buying?process?by:

• Offering?real-time pricing and configurations
• Minimizing?back-and-forth?negotiations
• Providing?visual configurators for an interactive experience

With CPQ software, customers?receive?professional, well-structured?quotes in real time,?allowing?them to make?quicker?decisions. This?enhances?their overall experience,?leading?to?higher?satisfaction and loyalty.

6. Increased Revenue and Profitability

CPQ software doesn't only automate quotes; it is also the revenue growth driver:

• Shorter sales cycles through quicker deal closure
• Elimination of pricing and configuration errors
• Unlocking upsells and cross-sell opportunities

Research?shows?that?manufacturers with a CPQ?solution see 30%?shorter?sales cycle and 10%?boost?in average deal size.?With?the sales cycle?shortening?and conversion rates?improving, profitability?improves?directly.

7. Compliance and Standardization

Manufacturers are required to comply with industry regulations, pricing guidelines, and company policies. CPQ guarantees:

• Internal and external standard compliance
• Pricing and discount consistency
• Automated audit trails for accountability

CPQ reduces the risk of non-compliance by automating pricing and discounting structures and by ensuring that all quotes are regulatory compliant. Not only does it protect businesses from monetary penalties but also enhance their image as compliant, dependable partners.

8. Lower Operational Expenses

Automating repetitive processes, CPQ software minimizes dependence on manual intervention, resulting in cost savings. Advantages are:

• Lower administrative burden, allowing sales teams to focus on strategic activities
• Lower errors, minimizing expensive order revisions and returns
• Efficiency in production planning, maximizing resource usage

Lower operational expenses mean higher profit margins and enhanced competitiveness in the market.

9. AI-Driven Sales Recommendations

Advanced CPQ software uses AI to examine past sales history, customer tastes, and market trends, providing smart recommendations like:

• Pricing strategies based on demand forecasts
• Recommended add-ons and customizations to maximize order value
• Customer buying behaviour insights for focused upselling

With AI-enabled capabilities, companies can customize their products and services and boost conversion rates.

Choosing the Best CPQ Software for Your Business

Looking for the best CPQ software? Remember these factors:

• Integration – Be able to integrate with your existing ERP, CRM, and e-commerce platforms.
• Scalability – Choose a solution that grows with your business, managing increasing complexity and volume.
• Ease of Use – Simple and intuitive interfaces enable quick adoption, with minimal training requirements.
• Customization – The application should be accommodating enough to handle your unique business needs and processes.
• Automation – AI-driven insights, automated approval, and intelligent recommendations boost efficiency.

Investing in the most suitable CPQ software allows producers to future-proof business and achieve robust competitive advantage.

Conclusion

Cincom CPQ streamlines the whole sales and production process, allowing complex manufacturers to automate pricing, quotation, and product configuration with precision and accuracy. Reducing errors, fostering collaboration, and speeding up deal closure, Cincom CPQ allows companies to remain competitive in a dynamic market.

Whatever route you embark on to improve your sales process, deliver world-class customer experience, or maximize profitability, Cincom CPQ helps bring the best solutions for achieving long-term growth and business excellence in manufacturing.

Would you like to expand your manufacturing company? Please complete the information and find out about Cincom CPQ to revolutionize your business.