Why you should use a CPQ to optimize your MIS/ERP process
CPQs are the new software products that are becoming increasingly popular with companies marketing complex products and services.
Their mission is to simplify and automate the process of creating quotations, which are often time-consuming tasks and prone to human error.
If you're not familiar with the term CPQ and would like to know more, I invite you to take a look at our our article on the subject.
CPQ - ERP, a complementary team
The number 1 objective of most companies is to increase sales.
As much as MIS/ERP contribute to the organization's efficiency, and therefore its operational profitability, they are not aimed at boosting sales volume.
One way of boosting sales is to provide sales staff with the tools they need to produce quotations more quickly. Responding to more customer requests and generating more quotations will automatically lead to more sales, especially when we know that 50% of customers place their orders with the supplier who responds first to their request.
In short: The CPQ helps generate the revenues that will finance the operation of your MIS/ERP.
Harmonized processes
Once the CPQ has been integrated into the MIS/ERP, entire processes are harmonized.
Business processes such as sales, pipeline and quotation management are managed by your CPQ system, while internal processes such as inventory management, production, fulfillment and invoicing are managed by your ERP system.
The combination of the two software packages reduces data entry times, thus cutting operating costs. What's more, teams who only use ERP in their day-to-day work (adv, purchasing, production) have access to up-to-date, error-free CPQ data.
However, it is possible for a CPQ system and an ERP system to coexist without the need for connectors. However, transferring data from one system to the other leaves room for human error and takes up staff time for re-keying, and therefore low value-added tasks. With integration, data movements in both directions are automated.
Classically, CPQs and ERPs can be connected in both directions:
- From ERP to CPQ: transfer of data on costs, purchase prices and machine constraints, for example.
- From CPQ to ERP: transfer of sales data (quotes, orders)
The benefits of CPQ & MIS/ERP integration?
When done correctly, integrating your CPQ and MIS/ERP systems can deliver key benefits, including:
Time-saving :
Integration saves employees time, as they no longer have to perform redundant, manual tasks. Secondly, it saves time between closing the sale and putting the order into production, by eliminating the data transfer stage. These savings enable customers to make their purchases more quickly, and employees to focus on what's essential: selling and producing.
Reduce human error:
The CPQ has countless interesting features to ensure that the seller is selling a product that your company can and will deliver. What's more, all information relating to this sale will be automatically transformed into your MIS/ERP. This avoids any errors that might have been caused when creating a quotation or manually entering data into the ERP.
Complete view of customer follow-up :
If your sales reps can't easily see where their customers' orders are in the fulfillment process, or if they have unpaid invoices, do they have a complete view? CPQ-ERP integration closes this gap.
Better alignment between teams and systems:
Selling a new product? Updating your purchase prices? Too often, unconnected systems have heterogeneous data. Integration ensures that everyone is working from the same information to improve alignment and deliver better results, faster.
The ERP - CPQ combination is a fine example of what technology can bring to different industries. Given the advantages it brings, it's a safe bet that it will become the norm in a few years' time.
Are you a player in the packaging industry looking to optimize your sales processes? HIPE is a CPQ specially designed to meet your needs.
Find out more about our tool :