CPQ (Configure, Price, Quote) software has changed business as we know it. You’ve heard how your competitors adopted CPQ and now they’re reaping the benefits of this technological revolution. You’ve probably already decided to start evaluating CPQ solutions for your own company, but be sure to take your time when choosing such a critical software system.
What’s the potential impact of choosing the wrong CPQ solution? Let’s take a look at how important this decision is and what can happen if you don’t choose wisely.
CPQ Solutions Aren’t One Size Fits All
The business benefits of CPQ solutions are so broad that it really isn’t a question of whether or not your company needs this software. However, with so many solutions on the market, you’ll need to look closely at which solutions work best for your particular needs. Most CPQ solutions are optimized for a certain business category and some may not be able to handle your business needs. For manufacturing companies especially, selecting the right solution is crucial because CPQ software touches so many facets of your company.
Potential Effects of Choosing the Wrong CPQ
Wasted Time and Money
In addition to the high price of licensing enterprise business software, every day you spend on the wrong CPQ solution is money wasted in the opportunities to gain and expand your business. Imagine spending months training your team how to use one system only to realize that it’s impossible to accomplish what you need. This situation can lead to a lot of wasted time that could have been spent learning the right system.
Loss of Employee Faith and Morale
Many employees are already resistant to change, especially if it’s a foundational change like a software implementation of this scale. If you choose the wrong solution, it sours your employees on the experience and makes them lose faith in the entire process.
This will further complicate matters when you do find the right CPQ system, as staff will be reluctant to support and use it. That doesn’t just mean employees working on the production line or in the sales department. The executive/administrative level employees can lose faith, hindering future implementations and greatly hurting your company. It’s essential to have buy-in at every level of the business when adopting and implementing a successful CPQ solution.
Loss of Time Learning the System
Manufacturers should know that implementing a CPQ solution is a time-consuming process that cannot be achieved overnight (in fact, that should be a major red flag if a CPQ provider makes such a promise). Instead, it takes time and teamwork to plan, train, and implement such a switchover.
Also, be aware that this loss of productivity won’t just impact your IT department. It permeates through every department that will have to spend extra time and effort learning another new CPQ system when you find the right one.
Take Your Business to the Next Level
As we mentioned, time wasted is money lost. But exactly how will that impact your company?
Lightning fast turnaround time for quotes
The actual amount of time that could be saved will vary by system and company, but it’s possible to shorten the quote process from days or even weeks down to just a few minutes. Increased productivity and potential sales will be put on hold while you search for the right CPQ solution.
Supercharge productivity with a quality CPQ solution
As you move quotes more quickly through the process, you can keep your production line working more consistently to make configured products. Your engineering team will be able to work more independently thanks to CPQ, meaning they can develop more products and improve existing product lines. By some accounts, you could see up to a 5% reduction in operating costs and between 10 and 20% in SG&A costs.
The right CPQ solution can increase your bottom line
Wasting precious time on a CPQ that can’t deliver a streamlined, improved work experience, means missing out on additional sales and spending more money supporting an inefficient sales process.
Break Through the Competitive Barrier with the RIGHT CPQ Solution
There’s really no debating that a CPQ solution can positively increase your company’s bottom line making you more competitive. However, not all CPQ solutions are created equally. In order to avoid wasting time and losing money, invest time choosing the right solution. Do your research, look at reviews, know exactly what you want to achieve with a CPQ solution, and talk closely with several companies about their programs as well as their support before you make your decision.