The shift to digital-first B2B sales has made speed and accuracy essential for winning and retaining customers. Buyers expect fast, error-free transactions, yet many manufacturers still rely on outdated manual quoting and contract processes that introduce delays and errors, adding friction to the buying process.
As IT’s role evolves from support to strategic enablement, IT leaders must drive digital transformation initiatives that reduce friction in sales and improve business agility. Contract lifecycle management (CLM) solutions can help standardize contract processes, but they aren’t enough on their own to accelerate deal velocity. Transforming deal velocity requires an integrated approach where pricing, product, and contract data flow seamlessly from quote creation to final signature. Businesses can then maintain deal momentum when buyers are most eager to complete their purchase.
To solve this challenge, IT can create a streamlined, automated quote-to-contract process by integrating Configure, Price, Quote (CPQ) with their CLM.
The Need for CPQ and CLM Integration
Companies that fail to integrate their quoting and contracting systems hinder their own sales cycles and create obstacles that make it harder for customers to do business with them. When CPQ and CLM systems operate independently, misaligned pricing and contract terms become a common problem, leading to discrepancies that slow down approvals and introduce unnecessary legal risks.
Beyond efficiency, compliance and risk management have become more complex. Ensuring that contract terms align with approved pricing and company policies is more important than ever. Automating and synchronizing the quote-to-contract process can reduce noncompliance risks while structuring every contract correctly from the start.
How CPQ and CLM Streamline Deals
To understand how CPQ and CLM integration works, take the example of a heavy equipment manufacturer that builds custom industrial machinery for large-scale infrastructure projects. The company’s sales team frequently deals with complex product configurations, fluctuating raw material costs, and multimillion-dollar contracts that must align with strict compliance requirements.
Connecting the company’s CPQ and CLM can eliminate manual processes and other friction points throughout the sales process. Here’s how it works:
- Quote generation: A sales rep receives an inquiry from a construction firm needing a specialized crane. Using CPQ, the rep configures the crane based on the customer’s project specifications, applying dynamic pricing rules that factor in material costs, production timelines, and bulk discounts. The system confirms that the selected configuration is manufacturable and compliant with industry regulations.
- Contract creation: After the quote is finalized, the CPQ platform automatically transfers all quote details—product specifications, pricing, delivery schedules, and warranty terms—into the CLM system, which generates a contract draft without requiring manual data entry from legal or sales teams.
- Compliance check: Before sending the contract to the customer, the CLM system applies predefined business rules to identify terms requiring additional review. If a discount exceeds the configured threshold, for example, the system can automatically route the contract for approval from finance. (In advanced CPQ solutions like Tacton CPQ, margin control and discount approvals are already embedded in the CPQ workflow prior to this stage.) When the system detects non-standard clauses that deviate from approved templates, it triggers legal review according to the company’s governance policies.
- Execution: Once approved, the contract is sent to the customer via DocuSign for a fast, secure digital signature. The CLM system then stores the executed contract.
- Ongoing contract storage and management: After execution, the contract is archived in the CLM platform, making it easy to track key milestones such as payment schedules, renewal dates, and compliance obligations. If the company needs additional equipment later, the sales team can pull historical contract data from CLM into CPQ to generate a new quote that aligns with previously negotiated terms.
An integrated CPQ and CLM system helps manufacturers deliver high-quality products and close deals faster instead of dealing with manual errors, slow approvals, and compliance risks.
The Key Benefits of CPQ and CLM Integration
Integrating CPQ and CLM delivers benefits that streamline sales, enhance compliance, and drive revenue growth.
Faster Sales Cycles
Integrating CPQ and CLM software eliminates fragmented handoffs between quoting and contracting processes. Quote data automatically flows into the CLM to produce an accurate contract, helping sales teams reclaim valuable selling time they previously lost to manual data entry and document creation. This seamless flow eliminates bottlenecks and accelerates contract execution through integrated e-signature solutions like DocuSign.
Improved Compliance and Risk Management
Pulling existing agreements into CPQ ensures every new quote aligns with pre-approved pricing models and contractual obligations, preventing pricing discrepancies and unauthorized terms from entering contracts. This approach to compliance reduces error-prone manual reviews, strengthens audit trails, and provides both sales and legal teams with greater confidence in each agreement’s integrity.
Increased Revenue and Deal Optimization
Integrating historical contract data into CPQ gives manufacturers deeper visibility into upsell, cross-sell, and renewal opportunities. Sales teams can reference prior agreements to ensure consistent, compliant pricing and avoid unnecessary discounts, helping protect margins. This data-driven approach enables manufacturers to uncover and act on recurring customer needs, such as maintenance or consumables, and proactively extend contracts, maximizing long-term revenue.
Better Customer Experience
Buyers value transparency, speed, and consistency in their sales interactions. A well-integrated CPQ-CLM system eliminates delays and misalignment between pricing and contract terms. This seamless experience builds customer confidence, as buyers receive accurate quotes that translate directly into contracts without unexpected changes. Manufacturers build customer relationships on reliability, professionalism, and improved efficiency, leading to stronger relationships and higher deal velocity.
Best Practices for CPQ and CLM Integration
CPQ and CLM integration requires a thoughtful approach. Following these best practices can help your company achieve optimal results.
1. Ensure System Compatibility
CPQ and CLM must seamlessly integrate with existing enterprise systems such as CRM, ERP, and e-signature tools to create a unified workflow. Without proper compatibility, data silos can emerge, causing inefficiencies and manual workarounds that negate the benefits of integration. IT teams should review whether CPQ and CLM solutions support API-driven connectivity or pre-built integrations that enable smooth data exchange across the sales ecosystem.
2. Review Automation and Approval Workflows
IT teams can help eliminate unnecessary delays and reduce administrative burdens by structuring automated workflows that align sales, finance, and legal approvals. For example, once you generate a quote in CPQ, an automated workflow triggers contract creation in CLM, then sends the contract to the right stakeholders for review and approval.
3. Strengthen User Adoption
Even the most advanced systems will fall short if sales and legal teams struggle to use them effectively. IT leaders can drive greater engagement and simplify the transition by training end users on how automation improves efficiency and reduces workload.
4. Prioritize Compliance and Security
Sensitive pricing and contract data require robust security measures to protect against unauthorized access and regulatory violations. CPQ-CLM integration should include built-in controls to ensure that contracts align with approved pricing models, discount policies, and legal requirements. IT teams must also implement access controls and encryption protocols to safeguard confidential information.
Easier CPQ Integration for Manufacturers
Briding your systems can be easy with the right partner. Tacton’s CPQ is built for complex manufacturing sales, offering seamless integration with leading CLM solutions, such as:
- Sirion
- Icertis
- DocuSign
Tacton’s Connect to Anything, powered by Workato, provides a flexible, no-code integration framework with 600+ enterprise applications that allows manufacturers to bridge data silos and create a unified sales ecosystem.
For IT leaders at manufacturing companies, CPQ-CLM integration is a strategic move to accelerate deal cycles, improve the customer experience, and drive revenue growth.
Want to simplify your quote-to-contract process?