LLMs/Large language models
Ina Rogalev
2. December 2024
The optimization of the Configure-to-Order (CTO) process is becoming increasingly important in the B2B sector. CPQ (Configure-Price-Quote) solutions enable companies to configure, price, and offer products and services quickly and accurately. But how can the Configure-to-Order process be successfully optimized with CPQ solutions? This article outlines the key benefits and best practices for implementation.
Briefly explained: What is Configure-to-Order?
Configure-to-order (CTO) refers to a production and sales process in which products are individually configured according to customer requirements and only manufactured once an order has been received. The customer chooses from various options and features in order to receive a customized product. CTO enables flexible adaptation to specific requirements, increases customer satisfaction and optimizes the use of resources by only producing variants that are actually ordered.
The CTO process is often characterized by inefficient and error-prone steps. Manual configuration and pricing lead to high costs and slow processes.
The top 5 challenges in the process?
Briefly explained: What is Configure-Price-Quote?
Configure-Price-Quote (CPQ) is a software solution that helps companies to configure, price and quote complex products quickly and accurately. Through automated processes and rule-based configuration, CPQ reduces errors, shortens quotation times and ensures consistent prices. This makes the sales process more efficient and increases customer satisfaction.
In the Configure-to-Order (CTO) process, a Configure Price Quote (CPQ) solution can bring significant improvements. Rule-based configuration and pricing minimize errors and simplify product configuration. Dynamic pricing adjusts prices flexibly based on contract terms, while faster quote generation shortens sales response times. The integration of existing IT systems such as ERP, CRM, MES, PIM, or BIM to support the entire process creates seamless harmonization and automation. A unified user interface makes it easier for customers and teams to collaborate, improving teamwork. Additionally, Seamless system integration: Breaking down data silos and increasing productivity.Seamless system integration: Breaking down data silos and increasing productivity.the automated workflow ensures efficient processing, reduces manual work, and minimizes error sources—all factors that contribute to an optimized CTO process.
Successfully implementing a CPQ solution requires clear planning and coordination between sales, product management, and IT. The goal is a flexible and scalable solution that meets future business needs.
A CPQ solution, whether as a complete solution or in combination with individual modules, can significantly contribute to optimizing internal processes: It reduces costs, boosts sales success, and increases customer satisfaction. An automated, transparent workflow breaks down silos and enhances productivity across the company. For successful implementation, clear company goals, support from all stakeholders, and the choice of an experienced partner who understands your processes and IT landscape are essential.
CIBELE CASTRO
managing partner 4PACE Swiss AG
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