The Benefits of CPQ Software for the Manufacturing Industry
There are many variables that affect the price of goods; that’s where computer software comes in. Configure price quote (CPQ) software helps companies to configure products in the most optimal way and quote a price to a customer that factors in all the variables that affects the price.
Sales reps of manufacturing companies that have hundreds of complex products and are struggling in providing proper quotes to their customers can overcome this problem by purchasing manufacturing CPQ software. Increase in sales is directly related to increase in revenue for the business. IT research and advisory firm Gartner predicted that CPQ software can help companies to grow their sales by 10 percent. There are many advantages for those in the manufacturing industry to use CPQ software to increase their productivity and sales.
Automation of the configuration process
Spreadsheets used by analysts to configure quotes are tedious and the salespeople are a lot more likely to commit mistakes. The paperwork and the time used to manually configure a product are eliminated when using manufacturing CPQ software that configures the product accurately and a good deal more efficiently. The time saved by implementing CPQ translates to better use of time for the sales reps, allowing them to focus on their core task i.e. selling, thereby increasing revenues generated by your sales department.
The time that a sales rep takes to work on configuration or pricing activities, both of which are time consuming administrative, is drastically reduced by implementing CPQ software. This time can then instead be used by the sales reps in generating sales and identify more potential selling avenues.
Accurate pricing of complex products
In the manufacturing industry, optimizing and balancing the price is imperative. Profits would be scooped out if the prices are set too low, and if the prices are set too high, customers would look for other avenues to buy a similar product. The salespeople may put all their best efforts into pricing but manufacturing CPQ software is much more effective and efficient than a human.
Such software is designed to enhance the performance of your sales team by making the pricing process easy even for products that are very complex to price, requiring consideration of a number of factors.
If a seller takes more time to provide a quote to its customers, he will probably just switch to your competitors. CPQ software helps the manufacturers to speed up the entire process by streamlining quote delivery to its customers which relieves the sales reps of the task to accurately price a complex product. CPQ software helps the manufacturing company to become efficient organization.
Data is the most important aspect in forecasting the sales of the company, since the production department needs those figures to plan for making a target of their manufacturing and production. If there is no accurate data the sales forecast would also obviously be incorrect leading to either under producing a product or over producing a product. The CPQ software helps your business in making correct forecast thereby dramatically increasing your bottom-line and eliminating overhead expenses.
The probability of a seller making a mistake or sleight of hand is eliminated altogether.
As we enter the fourth industrial revolution, we observe that technology has left its mark on almost every field of personal and professional life. Computer software has empowered humans, assisting them to increase their work potential. In the same way, implementing CPQ software in a manufacturing industry would increase the sales potential of a manufacturing company. If you too want to increase the productivity of your sales team, then you must consider purchasing a manufacturing CPQ software. To get more information, contact a manufacturing software expert today.
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Configure Price Quote (CPQ) Basics
- How a sales organization benefits from a CPQ solution.
- Considerations for setting up and maintaining a CPQ solution.
- What to look for in a CPQ solution.
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