Why CPQ software is essential for make-to-order companies

1) Eliminate configuration and order errors

In the world of make-to-order manufacturing, mistakes in quotes can lead to costly production errors and dissatisfied customers.

Imagine a quote has to be generated for the installation of a door. Any change in the size of the door will also affect the size of the door postings.
The same goes for machines. A larger machine may need a different engine to function properly.
A larger table may require a thicker table-top, or perhaps the customer would prefer a thin table-top with an extra support under the top, or maybe an extra leg under the table.

You get the idea.

Our solution, Merkato CPQ, stays on top of the whole configuration process. It takes into account the latest changes in your configuration/quote and automatically makes the necessary adjustments with regards to the required materials and their pricing.

It’s like that fun teacher who gives away all the correct answers. Merkato CPQ gives the correct answers to sales teams all the time and constantly.

Merkato CPQ integrates with your existing applications, automating data entry and eliminating the risk of human error. This level of accuracy is essential for maintaining customer trust and ensuring smooth production workflows.

Once an MTO sale has been converted into an order, Merkato CPQ can also control your CAD system and generate the necessary production drawings fully automatically. This in turn saves you enormously on engineering resources!

2) Boost sales efficiency and improve customer experience

CPQ software significantly enhances the efficiency of sales teams by providing an intuitive interface that guides them through the configuration and quoting process.

Merkato CPQ allows sales representatives to respond to customer inquiries faster, offering detailed and accurate quotes (or other customer-specific documents) that meet their requirements. Moreover, your sales staff will no longer forget to verify all add-on sales possibilities or upsell opportunities.

Sales guidance (see point 1) is such a powerful tool that you can extend its capabilities to your clients. You can provide a self-service tool in which clients and prospects can configure what they want, generate a quote, and order a tailored solution.

Why not reorient your sales team to only those accounts and requests that merit that special attention, while part of your sales runs on automatic pilot?

A fast and direct configuration and quote process improves the overall customer experience and helps your business stand out in a competitive marketplace.

3) Optimise pricing strategies for custom orders

Pricing for make-to-order products is complex, involving many factors such as material costs, labour time, production time, and specific customer requirements.

In fact, the complexity of pricing can be so great that a desired delivery date affects the use of a machine and therefore the associated costs that need to be taken into account.

Merkato CPQ provides flexible pricing models that automatically calculate prices based on real-time data. This ensures that your pricing is competitive, accurate, and aligned with your profitability goals. CPQ software empowers sales teams to offer personalised pricing without compromising on margins.

4) Accurate quoting and integration with ERP, CRM and CAD

CPQ software is most effective when it works in harmony with other key business systems like ERP (Enterprise Resource Planning), CRM (Customer Relationship Management), and CAD (Computer Aided Design) software.

Merkato CPQ acts as an interface for all connected software. These integrations automate the coordination between sales, production, and finance, while excluding data-entry in yet another application. This way you save on the cost of internal staff while ruling out errors.

With all information up-to-date across applications, and CPQ that automates calculations and configurations, your salespeople will have an accurate, ready-for-sign-off quote in no time.

As customers become more and more fussy in their buying habits, your team is up for the task with CPQ to satisfy those expectations.

5) Scale your sales process for future growth

As your manufacturing business grows, so does the complexity of your sales process. Merkato CPQ is designed to scale with your business – accommodating new products, evolving configurations, and changing pricing strategies and workflows.

FYI – Our smallest user is a one-man show who positions himself as a trustworthy company thanks to the professional commercial approach being used, and our largest clients are multinationals that bring their dealer network the appropriate and branded tools they require to sell easily.

Whether you are a small manufacturer or a large enterprise, CPQ software provides the flexibility to adapt to new market demands and customer needs, supporting your growth every step of the way.

6) Leverage data insights and analytics for better decision-making

CPQ software collects valuable data during the quoting process, providing insights into customer preferences, popular configurations, and sales trends. Merkato CPQ offers robust analytics and reporting capabilities that help you understand your market and optimise your product offerings.

By leveraging these insights, you will refine your sales strategy, improve product offerings, and make data-driven decisions that drive your business forward.

Conclusion

For make-to-order companies, CPQ software is not just an efficiency tool; it’s a competitive advantage. By guiding the quoting process, improving accuracy, and enhancing sales efficiency, Merkato CPQ helps manufacturers meet customer demands with confidence.

The software’s ability to handle complex configurations and unique customer specifications, optimise pricing, and integrate with other business systems makes it an invaluable asset for any MTO manufacturer.

Ready to streamline your make-to-order manufacturing process?

Discover how Merkato CPQ can revolutionise your sales operations and help your business thrive in a competitive market.

Contact us below and book a meeting with us today!