What's new in 1704 release- Cloud CPQ Express for Manufacturing

After successfully launching the CPQ for sales and running it for the scenario of pure sales-oriented quotations, In Mind Cloud is proud to bring out its new release. Our 1704 release also starts to cater to the need of reusing the vital costing and sales BOM information in WON quotes and taking this information to the manufacturing processes in SAP ERP. Together with this, In Mind Cloud has also engineered the usage of the manufacturing data: classification, costs, and products etc. – in the core: CPQ process itself. This innovation comes together with usage of CPQ for sales. However, the larger focus is to support manufacturing-driven CPQ.

A manufacturing-driven CPQ should make use of the production building blocks such as cost rate, material rates, partially to fully configured assemblies and projected designs in the sales process itself. It is done in manufacturing companies to cost quotes accurately and use correct product parts (sub-assemblies).

In a typical quoting scenario, some quotes will make it to the positive end of their life cycle and will be accepted by the customer. For such quotes, it is important thereafter that their configured sales BOM and costs structure are moved into the production system itself (SAP ERP). A mere creation of a sales order/quote is not enough because the configured assembly/finished good does not exists in SAP ERP yet.

To support this complex scenario, In Mind Cloud has innovated on both fronts:

  1. First on how to get the costing information from SAP ERP and use it within CPQ.
  2. Second, how to transfer the costs and other details from CPQ to SAP ERP in a structured manner.

We did this in close coordination with our manufacturing customers. The result is a CPQ built for manufacturing companies that quotes made-to-order assemblies/services and avoids delays/errors in using the time/information coming from or going into SAP ERP.

Read about all innovations of our 1704 release in detail in the following release report:

Cloud CPQ Express for Manufacturing - Made To Order Process (MTO)

Cloud CPQ Express for Manufacturing – Made To Order Process (MTO)

To support CPQ for manufacturing, Cloud CPQ Express supports the following four very important process steps for companies that quote an assembly in the initial phase and will, after quote acceptance, create those assemblies in SAP ERP to start the manufacturing process:

  • Create Finished Good/Assembly in ERP
  • Create Finished Good/Assembly Bill of Material in ERP
  • Create Finished Good Material Routing in ERP
  • Create Sales Order for the new finished good

This set of features enables the end customer to not only to use Cloud CPQ Express for sales operations, but also in production planning, thereby making CPQ a vital tool to drive manufacturing success.

 

Cloud CPQ Express for Manufacturing - Internal Price Engine

Cloud CPQ Express for Manufacturing – Internal Price Engine

To support costing in Cloud CPQ Express Internal Price Engine, we developed a feature with which users can define cost tables in SAP ERP and sync these tables to  Cloud CPQ Express. Additionally, to further support costing for a manufacturing-driven CPQ, the CPQ needs to use the costs that come from SAP ERP and use them in a definable and maintainable way to come up with the Quote Cost Structure. To support this, we offer setting up of a cost estimation scheme in CPQ.

 

Cloud CPQ Express for Manufacturing - Cloud for Customer Integration

Cloud CPQ Express for Manufacturing – Cloud for Customer Integration

With 1704, Cloud CPQ Express also supports the usage of CPQ as a costing engine in relation with SAP Hybris Cloud for Customer (CFC or C4C). In this scenario, CFC is supposed to manage the List Price of an item in CFC itself and CPQ will provide the cost estimate for the item.

CPQ for Manufacturing Cloud for Customer Integration

Next, using the integration between CFC and CPQ, the user can import the quote into CPQ and use it as a Cost Estimation Engine. Once the necessary costing steps are applied the user can export the quote back to CFC and CPQ will update the cost estimate in CFC.

In this way, a manufacturing company can use the two systems for a targeted use case of CPQ for Manufacturing (MTO, Cost Estimates) and CFC for sales. Note that now the user in CFC can change the list price to come up with the desired profit margin.

In Mind Cloud CRM CPQ for Manufacturing4

Cloud CPQ Express for Manufacturing – Cloud Product Modelling

Continued from the 1701 release, Cloud CPQ Express further supports modeling from the cloud system itself. This includes the following new features:

  • Model management view

Using Model management view the user can define new dynamic attributes directly. The definition now takes into account the position of the dynamic attribute as some default behavior based on Dynamic Data Attribute or Dynamic Symbolic Attribute.

  • Product KB modelling

These features enable a manufacturing company:

  • Creation of a product bill of material with bill of material entries: A bill of material entry is a pointer to other products that can be included in Sales BOM in case certain conditions are met. Where conditions are the Dynamic Attribute Values.
  • Creation of a product knowledge base
  • Usage of the product bill of material in knowledge base
  • Assignment of Dynamic Attribute to the product knowledgebase
  • Sequencing of the Dynamic Attribute as per the knowledgebase requirement
  • Creation of Knowledge Base Groups and Sub Groups to organized the KB data
  • Sequencing of Group and Sub groups and assignment of Dynamic Attributes to it

new modeling

 

  • Knowledge base creation using excel upload

1704 further enhances the creation of a Product Model by providing the ability to create a material/product, its bill of material, knowledge base and BOM triggers from an excel upload. 1704 supports multiple upload of the same excel sheet and makes it more user friendly to define the data outside but visualize it in the system.

 

  • Knowledge base validation using snap shot generation

As long the knowledgebase is in preparation the user can continue to edit it. Once all necessary logic is put together the user can validate the knowledgebase by creation of a KB Snapshot. This feature enables the system to compile and validate the knowledgebase and also create a time stamped version of the knowledgebase that will be used at run time in quotation process.

New Quote, Configuration and Pricing View with easy usability and direct access

New Quote, Configuration and Pricing View with easy usability and direct access

1704 comes with complete new SAPUI5-based front-end of the vital Quote Object. We now focus on providing access to all data points from a single view only to be more usable in the Cloud CPQ Express scenario.

This design involves view-related actions and process flows using mobile usage pattern so to make the features usable from tablet devices as well.

UI enhancmenet

Other features and enhancements:

  • For customer using ERP External Pricing, Cloud CPQ Express also supports BOM Explosion in ERP with 1704 release.
  • New Administration, Master data management, Account, Opportunity and Contact creation and detail UI.
  • CFC enhancements:
    • Synchronization of Sales Organization ID’s from CFC to CPQ.
    • Synchronization of Employees from CFC to CPQ.
  • Automated conversion of a legacy product model to a dynamic attribute based product model.
  • Reset configuration button and a button to visualize the user configuration steps.
  • Bug fixes, performance enhancements and clean ups.

 

Are you interested to discover our new release in more detail?

Request for free demo presentation and discover the above-mentioned features more in detail.

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About Mehrnaz Karimi

retroMehrnaz is one of In Mind Cloud's Pre-Sales Advisors for Europe and is based in Munich, Germany. She also holds the strings of our global partner network and is an expert in delivering technical knowledge in an understandable fashion.
Get in touch with Mehrnaz via LinkedIn

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