Start using CPQ? This can also be done without your ERP!

This article was written by Eelke Kramer from Elfsquad (Operations director)

Business first, technology second

In the world of manufacturing, automation and digitization are happening at a rapid pace. Yet many of these businesses still work with an ERP that forms the basis for almost all of their processes. Not a surprise that they often look for the step to the future from within their ERP.

The problem with this approach is that it is very organization-driven. For example, when starting from their BoMs and products, they will very quickly get stuck. By instead looking at how you can better assist your customers, you will get much further. The design of your organization does not matter to your customers, as long as they are assisted well with getting what they need. Leading to the mantra business first, technology second: ensure you serve your customer first, then look at how you can use your technology to fit this to your business as well as you can.

Benefits of business first

With strong CPQ software, you optimally support this mentality. This brings you some great benefits.

It automatically challenges you to look at what your customer really needs. By letting go of your ERP in the first instance, you do not let yourself be limited by what production and engineering have already been doing for years. You gain a better insight into your customer’s wishes. For example with the use of an online product configurator. In the configurator your production, engineers, and sales can cooperate optimally, all gaining exactly what they need.

And your customers? They are able to compose their ideal product on your website, when- and wherever it suits them. When a decision is made, they can easily contact a salesperson or directly receive a quotation.

Engineering benefits from a good CPQ tool because they directly gain a fully optimized 3D model, and because they have thought about the correct modules and dependencies between them in advance. Eventually, you directly send your bills of materials from an ERP to production, but that is not a must.

Additionally, your salespeople also benefit. On the one hand, they have certainty that the product they configure in the CPQ-tool can actually be manufactured. On the other hand, they gain polished visual material to show customers and have all commercial arguments handed to them on a silver platter. 

So where do you start?

Now that you have read that there are quite some benefits when you first let go of your back end as you start digitizing, the next question is: where to start? Simple. With the people that are closest to your customers. Your salespeople and dealers. They know the market, know what is going on, what can- and has to be sold, and what questions customers might have. By winning this information, you will not lose customers because they are looking for something you have never developed, but competitors have. 

Realistic and pragmatic

Are you already running an ERP that supports all of your business processes? Then it is unnecessary to throw that all out to remain relevant. With this blog, we simply aim to demonstrate that there is more to it than just your BoMs and product numbers. By pragmatically working with CPQ-software, you can quickly implement notable improvements that can also easily connect to your existing ERP.

So, what are you still waiting for? At Elfsquad we will show you exactly how you can optimally render your CPQ-software, through an online demo: by first handling the front-end, then considering dealers, resellers, and other salespeople, and finally connecting to your production environment.