…and why your manufacturing business will thank you for it.
Navigating through the day to day workings of a manufacturing business can be both exhausting and debilitating. Trying to avoid any additional costs and risks to these slim margins, the inevitable long cycle times and a sales process so disconnected from your manufacturing operations, you wonder if you are living in the stone age.
But there is light at the horizon: a CPQ (Configure, Price, Quote software) helps your manufacturing business to ramped up revenues and accelerated sales cycles by automating the RFQ (Request For Quotation) process. Using a CPQ assures that your salesmen are quoting the right products and configurations at the right price while creating accurate and complete proposals for lot sizes from 1 to 1 million. CPQ does not just benefit your salesmen, it benefits all areas of your business. So, what are the 3 game-changing factors of a successful CPQ for your manufacturing business?
Profitability in Manufacturing via Valid Upselling
“Would you like a drink with your meal?” The value of upselling was recognised a long time ago and today, we know it works. In the B2B manufacturing world, upselling may be overlooked and deemed insignificant to the bigger picture. An experienced salesman with a deep engineering background would be able to offer additional manufacturing parts for a machine, or an alternative, high-margin production material or finishing for an engineer-to-order RFQ. But non-technical or new sales people are lost in that game.
Having a tool that provides sales teams – regardless of their engineering knowledge – with valid cross and upsell options for manufacturing solutions can be a real game-changer. Deal values are increased by recommending additional or complementary manufacturing products, components or offering different materials or finishes to clients. Higher margin items can be outlined and mark-ups calculated easily.
Accelerate Sales in Manufacturing
Time is money. When a customer requests for a quote (RFQ or RFI), they want it as soon as possible. Not in 10 days, not in 1 month. If you keep a lengthy quote process, your sales cycle will no doubt be drawn out and might lead your customers straight into the hands of competitors, that are capable to deliver accurate RFQs fast.
The second factor is a significantly reduced time-to-market for any newly launched manufacturing innovation like new products, new materials or a new solution-service-package. Manufacturing businesses benefit from nailing their niche and constant innovation to be a head above their competitors.
Unfortunately it is not enough to have the best or newest manufacturing products, you also need the capabilities to offer them to your customers quickly.
Seamless Integration within Manufacturing Processes
With the rise of eCommerce in general and with upcoming technological innovations such as sales portals for manufacturers specifically, digital commerce competition becomes a threatening reality. With a growing global competition and slim margins, the sales process of manufacturers needs to run efficiently to the max.
Running your sales with a CRM that does not serve the purpose of configuration, costing and proposal creation is inefficient enough. But when you replace this revenue determining sales process step with Excel spreadsheets, that are disconnected from your ERP, it can put your entire business at risk.
CPQ provides the ability to create a seamless end-to-end sales process support with deep integration into both, front and back office system, enabling you to capture and connect your sales data for enhanced reporting and providing analytics to support management decisions. All relevant products, materials, assembly data and prices are known in real-time, out-ruling inaccurate quoting.
Secondly, it avoids further errors after a successful quote is turned into a sales order. Direct sales orders with all necessary data written into your ERP ensures that your customers get exactly what they were offered by your sales team, ensuring not only a high level of customer satisfaction, but protected margins from offer to order.
Summary: CPQ to Boost Manufacturing Revenues
When you implement CPQ, it does not just make a significant impact on your sales process but ultimately all other areas of your business. You are given the opportunity to make profitable gains via valid upselling, your sales process is automated leading to an accelerated sales and mistaken are avoidable due to a seamless integration to your manufacturing processes. Making an investment into CPQ software is not about the price of the software but about how much revenue it will help your manufacturing business generate.
If you would like to speak to one of our experts about acquiring a successful CPQ for your manufacturing business, book an appointment with our experts or join our upcoming webinar on “Challenges in Manufacturing – How CPQ can boosts your revenue”.