The Business of Product and Project Management is an important aspect of any business, whether it is large or small. Aspects such as product delivery management and project execution impact the success of a company by reducing the time to market for products. As a result, it becomes essential that manufacturers implement CPQ (Configure-Price-Quote) solutions in order to capitalize on this competitive advantage and shorten product development cycles. Sales quote software free makes it easier to create a quote and send a proposal to the potential customer. In this blog post, we will highlight some of the benefits that CPQ provides to businesses when they are looking for new ways to streamline their way through their process.
CPQ provides an effective, more efficient way to manage product costing by collecting and maintaining accurate cost information that can be used to calculate a price for the product. It is essential that companies collecting this information have the ability to separate out the cost of labor, materials, and other equipment which will lead to more accurate pricing of products.
This allows the company to determine how much money it will lose or makeover time as well as identify trends in various markets, which can help a company develop future products with a competitive edge on the global market. CPQ also helps companies by allowing them to take advantage of emerging markets where they may not have the resources or expertise available in their own geographic area.
What is CPQ?
CPQ (Configure-Price-Quote) is the process of collecting quotes from multiple vendors and determining which vendor can provide the best price for the product. CPQ often involves evaluating a large variety of vendors with the goal of obtaining prices that are both reasonable and competitive. The cost associated with this protocol is not only financial but also time.
Creating, evaluating, and selecting suppliers are challenging tasks for managers since they may require extensive background checks as well as remuneration levels that are difficult to maintain. This is where a CPQ solution such as Hibernate comes into play. Hibernate is a CPQ solution that helps companies eliminate the need for suppliers to go through a lengthy application and evaluation process. Instead, Hibernate allows a company to quickly find vendors who can provide the best prices and service with the click of a button.
According to research by Forrester Research, companies who use Hibernate have saved up to 40 percent compared to those who don’t employ such services. Moreover, Hibernate has experienced an increase in business which is predicted to continue as businesses seek out CPQ solutions for their operations and management.
What are the benefits of CPQ?
CPQ provides various benefits to businesses including
• Reduces inventory costs by allowing firms to order from a single vendor as opposed to multiple ones
• Reduces hold times by allowing companies the ability to expedite the product development cycle
• Increases revenues by allowing companies to reduce time-to-market for products and services. CPQ also allows the company to take advantage of emerging markets whose resources may not be available in their own geographic area. Hibernate is an example of a CPQ solution that has been able to successfully implement CPQ into businesses of all shapes and sizes. We have been able to do so by helping companies increase revenues, reduce operational costs, and offer faster service that helps them compete on the global market.
How does CPQ software work?
CPQ software such as Hibernate is integrated within an ERP and CRM solution. As a result, companies are able to download their purchase orders and contracts directly into the CPQ solution where it will be used by Hibernate for its price optimization algorithm. The algorithm then creates a cost forecast based on minimum order quantities and projected sales volumes.
Hibernate’s proprietary algorithms use this forecast to generate a unified price for businesses in one-to-one or multiple vendor scenarios. Using the price optimization algorithm, CPQ software is able to give companies the pricing flexibility they desire without sacrificing any of their profit margins. The companies can make use of sales quote software free for creating and sending proposals to potential customers.
In addition, Hibernate also offers forecasting tools that can be used by businesses to help determine future equipment purchases and service contracts. These forecasting tools can be viewed in real-time and are designed to help companies make better financial decisions as they relate to their business processes.
How do I access Hibernate’s CPQ solution?
Hibernate has made it incredibly easy for businesses to access its CPQ solution. Every major ERP has an entry point for Hibernate and we have solutions that will integrate with all of them. We know that businesses want to find a vendor that will seamlessly integrate with their existing systems, and we can help. Once Hibernate is integrated with an ERP, all of the benefits of CPQ will be in place.
As part of its end-to-end sourcing platform, Hibernate offers award-winning consulting services that help companies save time and money throughout the sourcing process. Additionally, our service providers can help remove risk from your tech sourcing project by accessing our platform directly and allowing us to source your needs with one easy integration. Businesses can cut their costs in half with a single provider and can reduce the risk of project failure due to inconsistent vendor performance.
Hibernate has made it incredibly easy for businesses to access its CPQ solution. Every major ERP has an entry point for Hibernate and we have solutions that will integrate with all of them. We know that businesses want to find a vendor that will seamlessly integrate with their existing systems, and we can help. Once Hibernate is integrated with an ERP, all of the benefits of CPQ will be in place.
Does my business need a CPQ system? Does my company need to locate and manage multiple suppliers? Is there a pain point in the supply chain that your company needs to address?
CPQ software solutions are the best way to solve these problems.
Osmos Cloud CPQ solutions can help you find the most cost-effective suppliers while also reducing operational costs. Our CPQ platform even allows you to integrate it with your existing ERP or CRM system, reducing the hassle of two separate processes and making your day-to-day operations easier.
How will CPQ help my company gain a competitive advantage?
CPQ solutions such as Hibernate make it easy to find and manage multiple suppliers. If your business relies on multiple vendors for the same product or service, then a CPQ solution can eliminate the need to manage each of these vendors individually. You can have one vendor take care of all of your equipment purchases while still giving you options for other services and products.
This is all that you need to know about CPQ and how it can help you with your business.