Synchronize a configurator (CPQ) with your Wavesoft ERP to generate growth
Therefore, all company departments must work together to achieve this same objective, with IT obviously playing its part, for example through a CRM or ERP system. However, for CPQ processes, it seems preferable to opt for a standalone tool that is closely integrated with the enterprise resource planning (ERP) system.
In this content, we will therefore see how to take full advantage of the synchronization between a Product Configurator and your Wavesoft ERP.
The essentials to know about CPQ solutions and configurators
The number of CPQ solutions has increased significantly recently, and given the rapidly expanding demand, this is no coincidence. While not all software is created equal, there is no doubt that the process benefits greatly from automation.
For the record, here is what the acronym means, and the tasks it implies:
- The "C" in "Configure" refers to the personalization of the offer, that is, its adaptability. The goal here is for it to correspond as closely as possible to the specific expectations of each customer.
- The "P" in "Price" signifies that if the offer is configured, the pricing must also be configured. While the cost of the "basic" proposal is the same for everyone, options and/or the customer/prospect's profile can lead to different prices.
- The "Q" in "Quote" refers to the fact that the purpose of the entire procedure is to send an offer that precisely summarizes its configuration elements and the corresponding price.
By relying on efficient CPQ software , the time savings are considerable, first and foremost for your sales representatives, but also for all the departments from which they previously had to gather the necessary information.
A Configurator contains all the necessary data for automating the CPQ process, thanks to the ERP system, including margin parameters and discount or markup criteria. Only a few steps are needed to generate a quote, the level of detail of which can even be adjusted according to the recipient's expectations.
A configurator project connected to Wavesoft?
The CPQ “2.0” or the integration of a Configurator with Wavesoft
As mentioned above, without configuration software, the Sales department has to search for the necessary data to prepare a quote from Production, Logistics, Management Control, and sometimes even Legal, etc. Exchanges then take place by phone, email, and with large Excel files, and all this manual data manipulation results in a high risk of an inaccurate final result.
Conversely, if you have CPQ software , it will access the necessary information instantly (and autonomously) thanks to a synchronization previously configured with Wavesoft . Therefore, assuming the master data contained in the ERP is reliable, your CPQ tool will be consistently populated without error.
It is also important to emphasize that this is a permanent integration, meaning that the connection between the Configuration software and Wavesoft must ensure that every piece of data inserted, deleted, or updated in the ERP appears immediately and identically in the CPQ tool.
Focus on data exchange between the ERP and the automation software CPQ
An integrated management software package, being a centralized IT solution that allows a company to manage all the processes related to its activity, can be compared to a unified information library. However, a configuration software only requires certain types of information. It therefore seemed relevant to focus on the master data that the CPQ tool needs to retrieve from Wavesoft :
- 1) Your company's contact details, so that they appear on the quote – as for the recipient, this information can also come from the ERP, the CRM, or even be entered directly into the CPQ tool
- 2) The coding of references. In fact, in order for the salesperson to be able to correctly link the basic offer desired by their client/prospect and the product or service managed by the company, they must be designated in the same way.
- 3) Configuration coding. Choosing a "basic" proposal is one thing, but customizing it is another. Therefore, the ERP must contain (and share with the Configurator) all selectable options for a given offer. The corollary is therefore that if a configuration has not been planned in the ERP, it will not appear in the tool CPQ used by salespeople
- 4) The elements enabling the generation of a personalized price, based on the cost price (including labor), the minimum contribution margin, and the conditions specific to each order or customer.
Un Configurator serving distributors
If your business strategy relies on a distribution network, be aware that a CPQ tool can also help it to significantly improve its efficiency.
To fully understand this, it's necessary to consider the "degraded" operating mode that naturally emerges if you don't have software to automate the Configure-Price-Quote process. In effect, distributors are forced to contact your company very frequently before making any offer. If their internal contacts also need some time to respond, the customer certainly won't receive the speed they expect from a high-performing company. Furthermore, the risk of errors is multiplied by the absence of an IT system that, by definition, consistently retrieves the correct data from the correct source.
By integrating configuration software into your sales structure and allowing distributors to easily connect to it, you will empower them and, in a way, help them develop their skills. They will be more efficient without having to access information you wish to keep confidential within your ERP system.
Simply put, when your distributor needs a quote, they will log in to the Configuration tool, enter the required information in just a few moments, and the system will then connect to Wavesoft to retrieve only the necessary key data. Ultimately , the client/prospect will receive a quote very quickly, with reliable and detailed information, which will reassure them of your company's professionalism.
Un ConfiguratorTwo different uses to choose from… for a single simple and effective solution!
When integrating Configuration software with the ERP, it is generally possible to choose whether your teams will use it directly, or as a "background" of the ERP.
In the first scenario, the tool is accessible as a separate software application with its own interface, and is of course configured according to the specific needs discussed prior to synchronization with the ERP. This solution is by far the most frequently chosen, ensuring that each process is handled by a dedicated IT tool.
With the second option mentioned, the Configuration software operates in the "background," its functionalities having to be added to the ERP interface. This results in a considerable increase in complexity, which offers no benefit, as the system will not be any more efficient than in the case of direct integration. Sometimes, for purely pragmatic reasons, this background operation solution is even considered unrealistic.
Two important recommendations to conclude
In conclusion, we wanted to offer you two pieces of advice which, from experience, can make a significant difference between a partial success and a resounding success.
- The first step is to choose a CPQ tool that can adapt to your needs and the inevitable changes they may encounter over time; opting for versatile software from the start will therefore prevent you from having to start all over again later.
- Next, consider training the tool's users, starting with the key usersThe more the software is understood and appreciated by the teams, the more it will be used to its full potential.