Why should you use a CPQ to optimize your MIS/ERP process
CPQs are new software solutions that are increasingly appealing to companies that sell complex products and services.
Their mission is, in particular, to simplify and automate the quote creation process, which is often time-consuming and prone to human error.
If you are not familiar with the term CPQ and would like to know more, I invite you to take a look at our article on the subject.
CPQ – ERP, a complementary team
The number one goal of most companies is to increase their turnover.
While MIS/ERPs contribute to the efficiency of the organization, and therefore its operational profitability, they are not aimed at boosting sales volume.
One way to increase sales is to provide sales representatives with tools to generate quotes and price offers more quickly. Responding to more customer requests and generating more quotes will mechanically lead to more sales, especially when we know that 50% of customers place orders with the supplier who responds first to their request.
In summary: CPQ helps generate the revenue that will finance the operation of your MIS/ERP.
Harmonized processes
Once the CPQ is integrated into the MIS/ERP, entire processes are harmonized.
Business processes, such as sales, pipeline, and quote management, are managed by your CPQ system, while internal processes, such as inventory management, production, execution, and billing, are managed by your ERP system.
The combination of the two software solutions results in reduced data entry times and, consequently, lower operating costs. Furthermore, teams that only use the ERP system in their daily work (sales administration, purchasing, production) have access to up-to-date and accurate CPQ data.
It is possible, however, for a CPQ system and an ERP system to coexist without connectors. However, transferring data from one system to another leaves room for human error and takes up valuable team time for re-entry, resulting in low value-added tasks. With integration, data flows in both directions are automated.
Typically, CPQ and ERP systems can be connected in both directions:
- From ERP to CPQ: transfer of cost data, purchase prices, and machine constraints, for example.
- From CPQ to ERP: transfer of sales data (quotes, orders).
What are the advantages of CPQ & MIS/ERP integration?
When done correctly, integrating your CPQ and MIS/ERP systems can offer key benefits, including:
Time savings:
Integration saves employees time by eliminating redundant and manual tasks. It also saves time between closing the sale and starting order production by eliminating the data transfer step. These savings allow customers to make purchases faster and employees to focus on what matters most: selling and producing.
Reduction of human errors:
The CPQ has countless interesting features to ensure that the salesperson sells a product that your company can and wants to deliver. In addition, all the information related to this sale will be automatically transformed into your MIS/ERP. This avoids any errors that could have been caused during the creation of a quote or during the manual entry of data into the ERP.
Complete view of customer tracking:
If your sales representatives cannot easily see the status of their customers' orders in the fulfillment process or if they have outstanding invoices, do they have a complete view? CPQ-ERP integration fills this gap.
Better alignment between teams and systems:
Are you selling a new product? Are you 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 great example of what technology can bring to different industries. Given the benefits it provides, it is likely to become the norm in a few years.
Are you a player in the packaging industry looking to optimize your sales processes? HIPE is a CPQ specifically designed to meet your needs.
To learn more about our tool: