9 Ways CPQ Software is Reshaping the Manufacturing Industry
The manufacturing industry is facing a number of challenges including rising costs, global competition, increasingly complex products, and high customer expectations. Additionally, a depleted labor market is making it difficult for many manufacturers to keep up with the rapid changes in the industry. Here are 9 ways Epicor's advanced CPQ software is helping to overcome these obstacles, while also driving disruption and innovation.
The most advanced CPQ solutions, like Epicor CPQ, have additional functionality, providing more than the standard configure, price, and quote components.
CPQ software solutions (CPQ, for short) are tools for configuring products, calculating prices for configurations, and generating quotes. Manufacturers selling complex configurable products can leverage these solutions to transform a once slow, error-prone sales cycle into a fast, error-free process. The result? More profit for manufacturers and a smoother experience for buyers -- a success for all sides.
How Is Advanced CPQ Software Different?
The most robust or "advanced" CPQ solutions, like Epicor CPQ, have additional functionality, providing more than the standard configure, price, and quote components. Features like visual product configuration, CAD automation, and systems integration save manufacturers significant time, effort, and money while enhancing customer experiences.
Below is a quick step-by-step of how advanced CPQ software works.
How Advanced CPQ Software Works from a User Perspective
- Step 1. Visual Product Configuration
Users (salespeople, partners, or end customers) configure a product with an intuitive visual product configurator that's often embedded into the seller's website. They view a base assembly on-screen and drag and drop to change parts, materials, dimensions, colors, and more -- anything's possible.
- Step 2. Real-Time Pricing
The CPQ software calculates prices in real time during the configuration process. The price changes as users select different options, enabling product optimization in line with budgets and faster decision-making.
- Step 3. Instant Quotes
The CPQ software uses the configuration and price to generate a quote. There's no more messing around in Excel. Everything's automated.
- Step 4. CAD Automation (This is where the "advanced" CPQ functionality kicks in.)
The CPQ software auto-generates various custom engineering and production documents, including CAD files, BOMs, 3D renderings, and CNC cut sheets and sends them to the correct department or recipient.
- Step 4. Engineer-to-Order Success
In some cases, the engineering team might want to give the CAD files a quick once-over to ensure they're shop-floor ready. Otherwise, all the necessary files and documents can flow downstream untouched for an entirely automated engineer-to-order process.
Visual product configuration is a digitized way of configuring products. Instead of relying on pen and paper, users configure products using an interactive visual interface that displays finished products in 3D.
How CPQ Software Is Reshaping Manufacturing
The manufacturing industry has evolved and, with it, the expectations of today's buyers. Gone are the days when a generalized approach to manufacturing was sufficient for achieving success.
VIDEO: How Epicor CPQ Can Help Your Business
Today's buyers demand customization and convenience. They expect the ability to configure products to their exact specifications, order online, and receive their goods fast. They want high-tech products and buying journeys to match, and they want to navigate these journeys seamlessly and independently of sales reps.
CPQ solutions are making it possible for manufacturers to meet these demands, thus causing the further reshaping of the manufacturing industry.
Here are some of the key trends they're driving:
- 1. Visual Product Configuration is streamlining the design process by replacing pen and paper.
- 2. Mass Customization is enabling greater flexibility and personalization by moving away from mass production.
- 3. Self-Service is improving customer experiences and reducing costs by replacing high-touch sales.
- 4. No-Code is reducing reliance on expensive developers by simplifying the software development process.
- 5. Guided Selling is reducing training costs for new hires by replacing expensive training.
- 6. Dynamic CPQ pricing is increasing profitability by moving away from cost-plus pricing.
- 7. Augmented and Virtual Reality are improving customer engagement by replacing showrooms and paper brochures.
- 8. A Single Source of Truth is improving efficiency and collaboration by replacing siloed departments and systems.
- 9. Cloud (SaaS) Software is increasing scalability and accessibility by replacing on-premises software.
The most advanced CPQ software solutions have augmented reality (AR) and virtual reality (VR) functionality built in. With this technology, customers can configure, view, and interact with products as if they were right there in front of them.
The manufacturing industry faces a new reality of increased competition, changing customer expectations, and the need for more efficient and personalized products. The introduction of CPQ software solutions is not only helping manufacturers to meet these demands, but it is also driving innovation.
CPQ automates multiple workflows to increase efficiency and productivity across the board.
With the ability to easily configure products to individual specifications, move away from mass production, and provide self-service buying experiences, manufacturers can differentiate themselves from the competition and cater to the demands of the modern buyer. The use of no-code and the integration of eCommerce are making it easier and more cost-effective for manufacturers to launch new products and expand their reach.
As manufacturing shifts and adapts to new demands, CPQ software solutions are emerging as a vital tool for manufacturers to stay competitive and keep pace with the market. With an array of innovative features, it's empowering manufacturers to meet the dynamic needs of today's buyers and stay ahead of a fast-paced and ever-changing industry.
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