Did you know optimizing manufacturing sales with CPQ can lead to results such as:
$17.6M – Savings from reduced sales labor cost
$6.5M – Savings from reduced order errors
$3.36M – Savings in administration
Those are savings that a global packaging machinery maker with a revenue of ~$12.5Billion could potentially achieve using Tacton CPQ* on an ANNUAL basis and positively impact their revenue and profitability. Yes, you read that right! (Read more about it here)
The manufacturing industry has always been subject to fluctuations in the economy, and the past few years have been no exception. From trade wars to global pandemics, manufacturers have faced multiple challenges that have forced them to reassess their priorities and investments.
In uncertain economic times, it’s important for manufacturers to invest wisely and strategically to ensure their businesses remain resilient and competitive. Let’s look at key investment areas for manufacturers to consider during uncertain economic times and how Configure, Price, Quote (CPQ) software is helping maximize these investments. Optimizing Manufacturing Sales with CPQ can help manufacturers become resilient no matter the challenge.
Where are manufacturers investing in 2023?
We recently asked manufacturers which key investment areas for their digital transformation. Manufacturers are still adopting a cautious approach to investments to mitigate potential risks. Here’s some key investment areas:
Sales (67%):
Every year manufacturers invest in their sales operation. Whether it be solutions that streamline configuring and quoting products or tools that help understand data better, companies see the importance of optimizing the sales process.
With less demand on the market, it’s important for manufacturers to be able to build strong relationships with their customers. When customers become more selective about how they spend their money, it’s critical to foster these relationships by helping them find the product with speed and accuracy.
Manufacturers are also on the lookout for tools that enable their newest sales reps to come up to speed faster. This is essential as many new sales reps take on average 3 months to confidently sell products.
The CPQ effect:
CPQ software helps streamline sales processes by automating the configuration, pricing, and quoting processes. This reduces the time and effort required to generate a quote, freeing up sales reps to focus on other critical tasks. CPQ also enables even the newest sales rep to be able to quote with confidence.
With Tacton CPQ software, global manufacturing leaders like Siemens reduced quoting time from 8 weeks to minutes. On average manufacturers who deploy Tacton software can see results such as:
- 34% Efficiency increase
- 30% Sales volume increase
- 20% Increase in profit
Supply Chain (63%):
The COVID-19 pandemic has highlighted the importance of supply chain resilience, and manufacturers must invest in technologies that enable them to quickly adapt to changes in the supply chain.
The CPQ effect:
CPQ can help manufacturers manage the entire order process, from quote to delivery. By automating the order process, manufacturers can reduce the risk of errors and delays, improving order accuracy and speed of delivery.
Check out the full discussion here
Product (56%):
It may seem counterintuitive to invest in new products during a recession, but new products can help manufacturers stay competitive with light demand. Companies who continue to invest in product development can gain the edge over competitors who stick to the status quo and the products they usually sell.
Investing in product development and improvement during a recession can help manufacturers prepare for the eventual recovery. When the economy picks up again, companies that have continued to invest in their products will be in a better position to capitalize on the increased demand.
The CPQ effect:
Using CPQ analytics it’s possible to understand what options and features are performing well, and which are not. Additionally, product management teams can understand profitability gaps, demand patterns and quote volumes that can help them in optimizing their business strategy and future action plans.
What are some other common investment areas for manufacturers this year?
Automation of internal processes (45%):
Automation can help manufacturers reduce costs associated with labor, materials, and waste. By automating repetitive tasks, companies can improve production efficiency and reduce the need for manual labor. Automation can also help manufacturers optimize energy usage, which can lead to significant cost savings and help with upcoming sustainability regulations.
The CPQ effect:
CPQ can integrate into many business-critical systems for manufacturers such as ERP, CRM and CAD. These integrations enable manufacturing teams to work smoothly across different data systems with CPQ at the center, reducing errors, saving time and getting customers their products faster. At Tacton we see our CPQ integrated with some common systems like Salesforce, Microsoft Dynamics, SAP and more.
Customer self-service sales (29%):
By providing customers with self-service sales options, manufacturers can improve customer satisfaction and streamline their sales processes. Customers are able to access information and purchase products more quickly and efficiently, reducing the amount of time and resources required to manage sales inquiries and orders. This approach can also reduce the risk of errors or miscommunications that can occur when customers interact with sales representatives.
The CPQ effect:
With CPQ self-service, customers can select the features and options they desire, view the cost of each option, and get an accurate quote for their custom product or service. This helps to eliminate the time and resources required for salespeople to handle these tasks, reducing operational costs and allowing the sales team to focus on more complex sales opportunities.
Optimizing manufacturing sales with CPQ for partners (28%):
Partners can help manufacturers reach new markets and customers that they may not have been able to access on their own. By leveraging the partner’s existing network and customer base, manufacturers can expand their reach without having to invest in building their own sales teams or infrastructure.
The CPQ effect:
Manufacturing partners often sell a range of products from different manufacturers, and managing complex configurations and pricing structures can be time-consuming and error prone. By implementing a CPQ solution, manufacturers can empower their partners to sell with confidence by providing them with a user-friendly interface to configure products and generate quotes quickly and accurately. Tacton helped HMF Group unify their sales process by making it easier for their partner network to sell.
Maximize your 2023 investments with Tacton
Leading manufacturers are always finding ways to stay relevant no matter the economic situation. As companies invest more into their 2023 goals it’s important to find ways to maximize these investments. Tacton Configure, Price, Quote software is helping global manufacturers maximize their investments every year.
Providing speed and accuracy is just a small part of what our product does. With smooth integrations it’s possible to connect every system in your operation. In addition to integrations CPQ also gives better visibility on supply chains, leaving our customers ready for any challenge that may arise.
Find out more by chatting with our experts to learn how optimizing manufacturing sales with CPQ can make all the difference!