There are many reasons why manufacturers need a CPQ system for configuring, pricing and quoting. After all, the variables that exist make this process prone to errors when done manually. Plus, preparing a quote on your own requires a lot of time since there are numerous factors to evaluate before you arrive at a decision. Read on for reasons why CPQ makes sense for the manufacturing industry.
Build Quotes Faster
When it comes to the sales process for manufactured products, it is important to be able to build quotes faster. In fact, CPQ systems help to produce quotes in a fraction of the time compared to managing the process with spreadsheets. Of course, this automation allows you to spend more time following up with leads rather than filling out paperwork. Additionally, these factors help to enhance the customer experience by creating more accurate pricing for customer orders. Certainly, building quotes faster for customers makes sense for manufacturers.
No Loss Of Revenue
Putting quote configuration into the hands of a human can lead to errors. CPQ for manufacturing eliminates costly mistakes that can damage your business. Errors in human judgment range anywhere from:
- Bad manual quotes
- Failure to follow informal approval processes
- Discounting and pricing errors
Any time an error like this happens, a lot of money gets lost in translation. CPQ for manufacturing automates the parts where mistakes in human judgment happen most. Meanwhile, it strengthens the productivity of your business because employees can focus on the essential aspects of the business. They can invest their time and energy into taking the customer from the point of being a prospect to a sale.
Intensive Approval Methods
One of the things that make CPQ for manufacturing such a great concept comes from how it eliminates errors through an intensive approval method. With each of the customized parts, you need multiple approvals from the engineers. This eliminates some of the waste and uneconomical use of raw materials. Understanding how to cut the waste makes a huge difference in your profit margins.
Making Manufacturing Profitable
As manufacturers, you always have a fluctuating supply when it comes to the raw materials. It goes up and down. Let’s take steel as one of the examples. The supply of steel largely depends on the extraction of coal. In addition, you have other things like weather and land conditions that all contribute to higher steel prices. Even when these factors look slightly unfavorable, they can still have a big impact on pricing. You must have the right pricing and manufacturer industry insights at your fingertips. That can be done with CPQ. Without it, you won’t get the best prices, which is essential to turning a profit when you work in the manufacturing business.
Better Channel Visibility
Over time, you can lose sight of the customers and their needs. You forget what brought them to you in the first place. When you take your sales professionals and you have them do the price quotes, you lose the opportunity to pull up essential data. This data provides insights into the operation of your business. That will help you to stay tuned to the needs and requirements of your customers. CPQ for manufacturing shines in a few specific ways. First, it provides you with centralized metrics. It ensures that you keep a detailed record of your interactions with customers. The data lowers your overhead, enhances your manufacturing processes and it hands you better visibility.
One of the biggest things that you have to learn how to do in manufacturing is to learn how to turn adversities into blessings. With CPQ, you can build quotes faster and minimize revenue losses. In addition, the intensive approval method makes mistakes less common. Next, these systems allow manufacturers to track essential data for your business to turn the highest profit. Finally, CPQ for manufacturing helps with better channel visibility. If you are a manufacturer, consider the reasons why CPQ makes sense for your industry.