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In the age of modern industrial manufacturing, digital tools have become a key element in every business’s competitive strategy. One such tool that has proven its worth to industrial machinery manufacturers is Configure, Price, Quote (CPQ) software.
Industrial machinery CPQ helps businesses streamline their operation to reduce errors and generate sales much more efficiently than past methods. From its humble origins, CPQ technology has grown to enormously impact the industry. Let’s take a look at the history of this essential tool and what its adoption has meant for manufacturers across the industrial machinery industry.
The 1980s saw a need for customization among industrial manufacturing clients. One-off jobs and fast-paced ordering made creating accurate, feasible customized products difficult.
During this time, manufacturers began adopting enterprise resource planning (ERP) software to manage the “back room” operations of their businesses such as managing inventory and quality control. However, the need for custom manufacturing required a new solution to keep up with changing customer expectations.
This is how industrial machinery CPQ was created — originally known as “configurators,” these solutions made it possible for sales teams to double-check the feasibility of custom manufacturing orders before sending them to the shop floor.
Once industrial machinery CPQ software was introduced, interest and applications of this tool exploded. CPQ began integrating into customer relationship management (CRM) systems in the ‘90s — alongside the boom of sales automation. From there, these systems became a part of the eCommerce trend of the 2000s, proving essential in the online sales process when it came to effectively ordering custom products through the internet.
After this initial foray into the sales world, developers began introducing industry-specific benefits to tailor CPQ to fit the workflows of specialty manufacturing. Adding features such as Bill of Materials (BOM) generation, CAD integrations, and more, CPQ evolved even further into what we know it as today.
As CPQ became more of a staple in the industrial machinery industry, sales teams and customers alike started to see the benefits. Intuitive sales tools help sales representatives stay in the know on all aspects of the manufacturing process to better guide customers toward feasible customizations. More informed sales representatives mean fewer errors down the line, a reduction in bottlenecks, and an overall boost to a manufacturer’s bottom line.
Industrial machinery CPQ also streamlines the sales process in general through automatic quote generation and accurate price quoting. This efficiency means customers get their orders faster and with fewer complications. Customers are also empowered by CPQ software through 3D visualization tools that allow them to see their final product — and price — as they configure.
While this solution provides a variety of benefits for manufacturers, it also produces its own set of challenges that requires businesses to adapt. CPQ software must continue to build on their roster of integrated solutions, as providing new and better software integrations becomes key to providing a comprehensive tech stack for manufacturers.
CPQ software that falls behind could risk becoming obsolete, especially with the introduction of AI and machine learning. By leveraging AI, CPQ software can introduce features like smart quoting, dynamic pricing, and guided product configuration.
Adding features like personalization and customer engagement tools could also further enhance CPQ’s utility to manufacturing sales teams, especially as customer needs shift toward human-centric service. Features like augmented reality engage customers and improve sales team effectiveness.
Talk to one of our specialists today to learn more about how this modern CPQ solution can change the way you do business — just like CPQ has been changing the industry for the last 40 years.
