CPQ: What Is It? And how has cpq software for manufacturing become a business’s best friend

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Imagine the following case: 

You are an employee of a tiny, privately held manufacturer of specialized delivery trucks. CPQ. A business calls you asking for your assistance in ordering ten trucks for its fleet. As a sales representative, you walk the buyer through each option while outlining your qualifications. 

After it is complete, you get in touch with the production floor, speak with the engineers as well as machinists to decide precisely what will appear in bill of materials (BOM), and check to see if the customer’s specifications can be met. Of course, you need to keep track of everything, decide what adjustments are necessary, and calculate the cost. 

Following all of this, you do the math and reply to the customer with just a quote. 

Work on this could last for several days. That’s a lot of time lost as you wait for a significant order that might make or break the financial health of your business. During those days, a potential clients can check out what their competitors ought to offer. This is even less effective if you give the customer a price & they decide to alter some of the specifications. Up until you and the customer agree on a suitable product combination, the process is repeated. 

There must be a more effective approach to this. Some companies use an Excel spreadsheet to create quotes in an effort to streamline this procedure. Others are making notes, distributing them, and then asking the various stakeholders to examine them. These really are 20th-century approaches to a 21st-century problem. 

In response, the cps software for manufacturing is use.

How Do You Define CPQ? 

Configure, Price, Quote (CPQ) software is use by manufacturing firms to generate bids and complete orders for items that can be customize. 

Let’s dissect each of these concepts: 


The tendency is toward “mass customization” and the “lot size of one,” even if discrete, repetitive manufacturing. In which a product is make with no variations, make to stock, and pick and ship when an order is receive, is still in use. Customers demand items that are increasingly suite to their individual needs, and they are seeking them now. Take a look at the success of companies like Build-A-Bear, which enables kids to customize their teddy bears in any way they see fit.

Applications such as iTunes as well as Spotify let us make dozens of personalize playlists to meet our tastes in music. Customers should naturally anticipate these very same capabilities from larger producers. Manufacturers used to provide clients with only a small number of options. However, the market has evolved, and if clients can’t find what they’re seeking, they will turn to their rivals. If achieving this seems impossible, ask yourself if it would be impossible for your rivals. If you don’t let customers fully customize your items, your rivals will have the opportunity to fill this gap and steal some of your market shares.


Pricing may be straightforward if your products are available in common configurations with little variation. However, if you allow for considerable product customization. You must be able to determine pricing without respect to whether a particularconfiguration has ever been quote or purchase. With the help of the pricing feature of CPQ, appropriate prices may be determine automatically for all market categories, regions, and sales channels.

Additionally, to make sure you’re optimizing income, discount approval workflows, discounting structures, “preferred customer pricing,” as well as variable price books can be used. Pricing may be determine by BOM attributes, production costs, features, and options or by any combination of these factors. The main lesson to be learn from this is that in order to ensure that quotes are accurate, your company needs software that can keep records of each of your pricing structures. This explains the price optimization in manufacturing.


 You may produce a quote for the customer to study as well as consider. Thanks to a wide range of configuration options and precise pricing. The quote itself, along with the manner in which it is deliver with professionalism, are the two main factors to be taken into account. Both of these are easily handle by CPQ software. The quote must be an official document first.

By doing this, you can guarantee that the data you give your client is well-organize, understandable, and without any ambiguity. Rework, client acquiescence, and product returns are reduced as a result. The top CPQ software has visualization features that let clients view 2D and 3D illustrations of the suggested product. Through interactive views of your items, visualization fosters customer loyalty by assisting customers. In better understanding what is being present and ensuring that the product attributes match their intended use.

CPQ Comes to the Aid

Let’s go back to the example from the opening of this post and apply it to a setting where CPQ software is in use: 

A business calls you asking for your assistance in ordering ten trucks for its fleet. Using CPQ software at your disposal, you may go over the numerous alternatives with the customer, a few of which they might not be aware of, opening up a door for upselling. There is no guesswork involve because the programme is aware of all the guidelines for customizing your trucks.

As alternatives are choose, the pricing is update in real time. And a live interactive 3D product model shows the consumer. How their choices will appear to make sure it satisfies their needs. At the touch of a button, a quotation can be create and mail to the client or post on a website tailored specifically for them. The customer and sales representative can rapidly and effectively make changes to the quote products till the customer is please. Sales representatives may give discounts in accordance with management-prescribed guidelines or may submit requests for clearance of more aggressive price arrangements to managers. 

Order details, including complete bills of material, can indeed be immediately supply to integrated production programmes. Such as ERPs as well as CRMs, without even any data re-entry or user intervention once the order has been obtained. Thanks to the adaptability and strength of CPQ software. A procedure that once may take several days on days now can be finish in hours or even minutes.


The update of (CPQ) configure, price, and quote software is crucial for manufacturers. It enables you to rapidly and accurately develop a price quote rather. Than taking days to gather input from several departments. Additionally, it enables you to avoid errors that can lose you a transaction (or future sales). The main benefit of CPQ would be that it would enable you to. Expand your company by streamlining, accelerating, and streamlining the sales process.

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