What is CPQ 2

Whitepaper - CPQ in mechanical and plant engineering: an overview of functions, trends & use cases

Overview whitepaper

A recent survey by the Association of German Mechanical and Plant Engineering (VDMA) shows that CPQ systems (Configure, Price, Quote) and product configurators are already among the most important investments in IT systems by mechanical and plant engineering, and their importance continues to grow rapidly. This whitepaper brings the most important functions and trends on the subject of CPQ in a nutshell. It answers the following key questions that manufacturing companies of complex and varied products ask themselves in connection with a CPQ introduction:

  1. Why is CPQ becoming so important to sales?
  2. Where is CPQ in the overall process?
  3. What are the core CPQ functions?
  4. What is CPQ based on?
  5. How does CPQ support the customer journey?
  6. What is the benefit in sales?
  7. What are specific best practice examples?

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Extract from the whitepaper

1. Why is CPQ becoming so important to sales?

Mechanical and plant engineering is a pioneer when it comes to batch size 1. According to the “German Industry 4.0 Index 2019” study by Staufen AG, almost two thirds of companies in this segment are striving for this new level of customization. You have recognized that in the future it will no longer be sufficient to rely solely on the success factors of quality, time and price. Because digitization offers companies new opportunities to individualize their products to meet specific customer needs. However, the sales process must be brought even closer to the customer and the resulting new variety of variants for sales and in-house production must be made economically manageable. In order to make this possible and to ensure future viability, more and more providers of multi-variant products are relying on CPQ for sales.

2. Where is CPQ in the overall process?

A CPQ system can be understood as a digital bridge that brings the sales process closer to the customer and maps customer requirements to production. It ensures that the growing demand for individualized products is served. From an IT point of view, it is the link between the opportunity in the CRM system and the order in the ERP system. The CPQ system often gets information from other sources, for example PLM, PIM or CAD systems, which are necessary for a convincing offer. The product configuration is also increasingly being integrated into the company's own website in B2B so that customers or dealers can initiate the offer and order process via the Internet.

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We have collected the key questions from machine and system manufacturers in relation to CPQ solutions and answered them in the whitepaper. You will receive answers to the following questions, among others:

  • What are the core CPQ functions?
  • What is CPQ based on?
  • How does CPQ support the customer journey?
  • What is the benefit in sales?
  • What are specific best practice examples?