The manufacturing industry is evolving faster than ever. With rising global competition, tariffs and trade wars, increasing customer expectations, technological advancements, and the complex demands of mass customization, manufacturers must adapt quickly to stay competitive. Customers now expect fast access to products and services tailored to their unique needs, all while manufacturers strive to deliver these solutions affordably and profitably.
Enter Configure Price Quote software (or CPQ). With its advanced capabilities, CPQ has become the go-to solution for manufacturers looking to streamline operations, improve efficiency, and gain a competitive edge. This blog explores the current challenges in manufacturing sales and how CPQ can help solve them.
The Growing Challenges of the Manufacturing Sales Environment
Manufacturers today face a sales environment that’s increasingly complex and demanding. Expanding product portfolios require managing diverse configurations and pricing more effectively. Customers expect faster sales cycles with instant, accurate quotes, making traditional, manual processes outdated. Tightening margins demand precision in pricing and deal governance to protect profits. The push for digital transformation compels manufacturers to modernize workflows, as reliance on spreadsheets and disconnected tools slows down operations and risks errors.
With these challenges mounting, manufacturers need a smarter approach to adapt and thrive. This juncture is where CPQ technology becomes a strategic asset to gain the competitive edge. CPQ streamlines quoting, automates configuration, ensures pricing accuracy, and bridges the gap between sales and pricing teams, turning obstacles into opportunities for efficiency and profitability.
5 Key Challenges Solved by CPQ
Challenge 1: Delayed Quote Turnaround
Long quote cycles caused by manual processes, disconnected tools, and complex product catalogs lead to frustrated customers, reduced win rates, and lost revenue.
CPQ speeds up sales cycles by automating the quoting process.
PROS Smart CPQ integrates seamlessly with existing systems like CRM and ERP, providing a unified and guided selling experience for sales teams across your business units and geographies. Sales reps can easily configure products, apply the correct pricing, and generate professional quotes in minutes instead of days. By removing administrative bottlenecks and streamlining workflows, CPQ allows sales professionals to focus on building strong customer relationships rather than losing time on repetitive tasks.
Challenge 2: Errors and Inaccuracies in Sales Proposals
Manual quoting processes often result in critical errors, such as outdated pricing, incorrect configurations, or invalid product bundles. These mistakes can cause customer dissatisfaction and lost deals, all while eroding margins with unanticipated discounts.
CPQ makes errors a thing of the past.
The software helps ensure product and pricing precision by pulling up-to-date catalog information directly from the system, along with the latest market-relevant prices. It validates configurations and enforces pricing rules automatically. This not only improves quote accuracy but also ensures compliance with organizational pricing policies. By offering sales reps access to real-time, reliable product and pricing data, CPQ enhances credibility and helps close deals faster.
Challenge 3: Configuring Complex Products
Manufacturers often sell highly customizable products with countless components, dependencies, and configuration rules. Sales reps without enough technical expertise can struggle to configure these products correctly.
CPQ simplifies complex product configuration.
Using a powerful configuration logic, a constraints-based engine, and guided selling workflows, PROS Smart CPQ makes it easy to handle dependencies, ensure compatibility, and even create intricate bundles for all go-to-market channels. Sales teams can confidently configure custom products without constantly consulting technical experts, enabling faster, more accurate quotes and a more streamlined path from configuration to order.
Challenge 4: Managing Long-Term Price Agreements
Long-term deals often involve negotiated pricing, custom terms, and multi-year commitments. Relying on outdated tools like spreadsheets makes it difficult to track pricing changes, manage renewals, or ensure compliance over time.
CPQ centralizes sales and pricing data and automates renewals.
By unifying sales and pricing data and automating renewals, price updates, and long-term agreement amendments, CPQ provides better visibility and governance, reducing the risk of revenue leakage or margin erosion. It ensures consistency and profitability throughout the deal lifecycle, while saving time and effort for the sales team.
Challenge 5: Limited Collaboration Between Sales and Pricing Teams
Disconnected tools and processes create silos between key functions like sales and pricing teams. This misalignment slows down approvals, causes pricing inconsistencies, and reduces agility in responding to market changes.
CPQ enhances visibility.
CPQ bridges the gap between sales and pricing teams by offering shared visibility into pricing strategies, deal structures, and approval workflows. This alignment accelerates decision-making, reduces delays, and increases deal outcomes. Teams can work collaboratively to create strategic sales proposals that meet both customer needs and business goals.
Boost Efficiency, Revenues and Profits with CPQ
The manufacturing sales landscape may be increasingly complex, but it doesn’t have to be chaotic. By implementing PROS Smart CPQ, manufacturers can transform their sales process to align with modern customer expectations. Faster quotes, fewer errors, and streamlined workflows don’t just enhance efficiency; they improve customer satisfaction and ultimately drive higher profitability.
The benefits speak for themselves. With CPQ technology like PROS Smart CPQ, businesses can see:
- 20% increase in win rate*
- 5% increase in revenue*
- 2% increase in margin*
- 20% increase in lifetime value*
If you’re ready to solve the challenges holding back your sales operations, CPQ is your answer. Start exploring how CPQ can elevate your sales processes and set your business up for lasting success.
To learn more about CPQ and the PROS Platform, contact us today.
*Gartner Maturity Model for Quote-to-Cash Technology, Feb 2019, Mark Lewis
