CPQ Software and Digital Transformation in Manufacturing

1. CPQ Software and Digital Transformation in Manufacturing ============================================================== Manufacturers today are required to serve a global audience, provide countless customization options, while also managing their products’ journey from the factory floor to the consumers’ front door. One error could spell the complete end of customer relationships. There are more competitors ever than in the past—and they’re now easier than ever before to be found by consumers. Manufacturers should therefore get transformed digitally. They must find ways to make their operations as efficient, accurate, and as cost-effective as possible while providing a great customer experience (CX). This is where CPQ software comes in. Let’s analyze how CPQ solutionscan drive digital transformation in manufacturing—and then go into the impact this will have on manufacturers’ objectives. Why Manufacturing Needs Digital Transformation Digital transformation has become a bit of a buzz-phrase in recent years—so what does it exactly mean? According to PTC, “Digital transformation in manufacturing is the application of technology to maximize revenue, reduce cost, improve quality, and increase flexibility.” This is more important given the business dynamics. Consumers hold all the cards—and will only work with companies providing them with exactly what they are looking for. Manufacturers, therefore, look for the right competitive edge. If they can maximize their revenue, reduce costs, improve overall quality, and increase flexibility, they will edge out the competition for a long time to come. This is why 90% of manufacturing leaders believe that digital transformation is crucial for their success going ahead. Where CPQ Software comes to the Fore Now that we’ve outlined the commercial case for digital transformation, then it’s time to get into the little details. The term digital transformation could refer to almost anything new and digital. Manufacturers could state that they have “digitally transformed” after they start clicking pictures of their products with an iPhone and not a disposable Kodak, for instance. But the right digital transformation is more than these minor, almost petty upgrades. The best digital transformation efforts reshape every single aspect of the operations of a manufacturing organization. They make it easier for customers to search for and then buy your products. They make your team more efficient— taking out low-value tasks while also empowering them to focus on high-value activities. In other words, they offer capabilities akin to CPQ (Configure, Price, Quote) software.

2. CPQ softwareautomates error-loaded processes, provides a highly immersive buying experience, and also allows teams to concentrate on what they are best at. By implementing a CPQ tool, manufacturers can elevate their operations to a whole new level. The 4 main benefits of CPQ Software Let’s have a look into the physical benefits of CPQ software offers, outlining the four specific benefits that manufacturing organizations gain when they implement CPQ solutions. How CPQ Software Improves Manufacturers’ CX In today’s world, the customer is no longer king—it’s their experience. No manufacturing company can succeed if they struggle with delivering a poor CX. If customers struggle to research, configure, as well as purchase products independently, they’ll just go somewhere else. Likewise, if their supplier keeps making basic errors, this will damage the trust customers have in the organization—and so they will start looking around for alternative providers. Fortunately, there’s a pretty sorted way that manufacturers can safeguard their CX: implement a CPQ tool like Epicor CPQ. The Epicor CPQ Snap rules engine, for instance, allows manufacturers to create rules that govern how products get configured, priced, and then sold. Their CPQ tool is then built on top of these rules. It ensures that sales reps configure their products within the necessary constraints—ensuring that all products configured are indeed manufactured and sold. Manufacturing organizations need to keep tabs on how their consumers behave before tweaking the experience they serve up accordingly. With Epicor CPQ Analytics, manufacturers can collect important user data and then push it over their preferred analytics platform. This will provide previously unavailable insights into their customers. Manufacturers can then use it to fine-tune their own operations, allowing them to best serve their customers’ varying wants and needs. How CPQ Software Governs Customer Engagement Having a great CX is about more than people-pleasing alone. If customers are enjoying the process of buying and interacting with your company, then they will be more likely to continue doing business with you. Customer engagement, in other words, will be bound to increase—as will your customer loyalty and retention rates. Statistics show that companies successfully engaging their B2B customers realize 63% lower customer attrition than their less engagement-focused competitors. By implementing Epicor CPQ, you can provide customers with 2D and even 3D buying experiences. They have been shown to drive engagement, boosting conversions by up to 40%. Customers can instantly change their product visuals, options, as well as pricing in real-time—providing them with complete customizability and transparency at all times. How CPQ Solutions Make Manufacturers Efficient

3. Let’s now take a step back from the consumer. It’s all well and good providing a superior CX and engage your customers. However, such efforts will fall flat on their face unless your organization can deliver upon what you’ve promised. Manufacturing organizations need to have seamless processes in place to ensure they can efficiently fulfill any order, at any time of the day, for any customer—without any errors. Fortunately, that’s not as hard as you may think. CPQ solutions boost internal efficiency. They automatically provide users with key pricing details in real-time, drawing from multiple sources: databases, pricing tables, ERPs, and more. Sales reps will no longer have to manually look over complex spreadsheets—which therefore reduces the chance of an error. Manufacturers can operate from a single source of truth, integrating their ERP systems, shopping carts/eCommerce, CRM/CPQ platforms, CAD systems, PLM, and proprietary systems. But that’s not all. CPQ software can also automatically generate and send mission-critical manufacturing documents like BOMs, cut sheets, inventory status, shipping, as well as assembly documentation. These come straight from the product configuration output, ensuring that no key detail or instruction gets lost. They can even automate proposal drawings as well as CAD files, integrating with platforms like SolidWorks, Autodesk, and PTC. CPQ automates what can be automated, connects what can be connected, and drives internal efficiency. CPQ Software Eliminates Costly Errors Mistakes are the death-knell for any kind of manufacturing organizations. If a manufacturer gets absolutely anything wrong—whether their products’ configurations, price, or their distribution—then consumers might just switch their suppliers. Today, consumers are just a quick Google search away from thousands of global competitors. In fact, Zendesk research estimates that 50% of customers will leave a brand for one of its competitors after a single bad experience. Manufacturers that can eliminate mistakes will increase customer loyalty, reduce that unrequired back- and-forth, and also streamline different downstream processes. However, this is made all more difficult, given your buyers want customization. More product options might mean more potential customers— but it also means more potential mistakes. Unless you use a CPQ software, that is. By using a CPQ with an in-built product configurator, you can avoid manual configuration processes— ensuring that all configurations follow tight-knit, pre-set “product rules.” Data will pass seamlessly from the shopping car to the shop floor. The result? Zero errors, lesser delays, as well as increased customer satisfaction.

4. No longer will you have to train reps to memorize hundreds, or even thousands, of SKUs. Instead, simply let them focus on what they do best: selling your products. Get your digital transformation journey going already Manufacturers are battling on all fronts. Consumer expectations and competition have increased—while consumer loyalty and the margin for error have decreased. To stay ahead of the competition, manufacturers need to kickstart their digital transformation efforts by implementing a CPQ tool. So if you’re looking to future-proof your organization today, it’s time you get your digital transformation process underway.