What is CPQ?
We are living in a world where everyone has unique set of demands and hence wants a customized product. In order to meet customers’ needs, companies use CPQ tools which facilitates the user to customize the product by having a 3D view, configuration in real-time and get a quick sales quote. Bottom-line is a configurator offers a guided selling for the customers and a better buying experience for multiple industry verticals.
Configure-Price-Quote (CPQ) software connects the users with configured products with a guided buying experience. It helps addressing constantly varying demand to assist companies in addressing the customer needs better.
Advantages of using CPQ and why should you use it?
CPQ comes with infinite numbers of possible utilities for an organisation who wants to compete and grow with their new customizable product design ideas. Few of the many advantages of CPQ in industrial product manufacturing industry encompass:
Customer Satisfaction:
CPQ solutions assist the company to go extra mile and serve the customer better by providing on time deliveries, almost no return or rework, minimum scrap and engineer [design and manufacture] according to the order – ETO. Such customer centric design offerings give custom product manufacturing companies an edge to strive amongst the market competitors and establish a string clientele.
Diminish Departmental dominion:
Many companies track their pricing and configuration using spreadsheet which is troublesome to refer to and maintain. Also, spreadsheets are tedious when manufacturing product mix volume is high. Furthermore, companies can’t keep up the updated pricing with accuracy all the time. But with CPQ, they have an option to integrate the data from inventory, shop floor, and ERP that can obtain updated database and generate accurate quotes with a near approximate sales delivery.
Reliability:
Since CPQ smoothly unifies with other processes of the manufacturing firm like raw material inventory, accounts, HRM, supply chain and others, the possibility of generating unreliable data diminishes. Hence, the delivery dates so generated for the final products are also near to the actual date which establishes a reliability factor between the client and the manufacturing company.
Productivity:
Another takeaway with CPQ is with its adoption, CPQ platforms eliminate human intervention since all the systems are internally connected. It ensures that the processes that are prone to errors like design calculation, anticipation etc. are pacified. When such appropriate design inputs are provided to the production division, it leads to almost no rework which in turn results in reduced waste, higher productivity and lower overhead expenses.
Bringing it all together
With the aforementioned advantages of CPQ, the manufacturing organisation or design firms can become more productive, reliable and are empowered to deliver better buying experience to their clients. It improves the organisation in all aspects and the resources can be utilized more efficiently like R&D and design exploration leading allowing efficient configuration or base frame models.
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