The one glaring advantage of a built-in ERP Configurator is product information integration. All of the product information is the same and communicates stage-to-stage in whatever process is set up. However, there are some huge advantages to a CPQ tool that drive significant value for Sales, and financially for a company, that most configurators do not have.
The Ability to Handle Multiple Dynamic Integrated Product Trees
What this means is that a change in product selection or configuration in one tree impacts what is available and how it is configured in other trees. Robust product rules and the ability to incorporate these is an example.
CPQ is developed to enable Sales. Guided selling increases productivity, reduces need for sales engineering, increases cross sell and reduces error. It is hard to expect a Sales person, particularly a new one, to know everything. Guided selling addresses this.
CPQ has a built-in high-quality dynamic proposal engine that allows for the incorporation of different sales and marketing materials and is responsive to the changing nature of the configured offering. ERP Configurators are not built to be this extensive or flexible.
Margin Guidelines and Approval Workflows
The biggest bottom line impact that any company can achieve is improvement in their offered net pricing. This flows straight through to the bottom line. CPQ is specifically set up to support processes that maintain and enhance pricing. Most configurators are not.
Configurators largely are dependent on already knowing the product and what to select along with it in terms of services and other products. Product rules in CPQ make sure that no one makes a mistake and that the highest value bundles are created.
The bottom line is configurators have been developed to support order entry and the downstream processes. While integration into that is important, CPQ is specifically developed to support the contribution Sales makes to the organization. This value can exceed what can be attained from a configurator by orders of magnitude.
To find out more about the differences between ERP Configurators and CPQ functionality schedule a demo of EndeavorCPQ or call us at (214) 736–7178 to speak with a sales representative today.