The Advantages of CAD:  Transform Design Plans into Digital Representations

Computer-aided design (CAD) burst onto the scene in 1957 and has been making waves and pushing the manufacturing industry forward for more than 25 years. The importance of CAD lies in the fact that it has revolutionized how people design structures and products, resulting in increased precision, versatility, and productivity in sectors all across the industry.

While many of today’s product engineers may take CAD for granted, it remains one of the most important developments of this era. Read on to learn more about what CAD software is, its pros and cons in manufacturing, and how you can pair this technology with CPQ to create even more effective systems and processes.

What Is CAD Software?

CAD is short for computer-aided design. Used in many industries, from software development to architecture, CAD is all about getting computer assistance to create designs and plans as quickly and accurately as possible. 

With CAD software, users navigate a graphical user interface (GUI) to make a two- or three-dimensional digital representation of a future (or existing) physical item. The software allows you to change your representation or modify existing elements before you make your model come to life in the real world.

How Is CAD Used in Manufacturing?

For decades, CAD technology has been a mainstay in the manufacturing industry, helping professionals design products and create photorealistic three-dimensional models that enhance accuracy and efficiency at every turn.

Still, CAD doesn’t just stop at realistic model creation. Instead of just understanding how the product will look, the software also allows you to simulate product functions to test dynamics, fluid flow, stress, and vibration. That enables you to spot errors and address issues before starting the manufacturing process.

CAD software truly shines in the post-model creation phase. Once the engineer has finished their 3D model, CAD allows those not skilled in using the software to manipulate the product. That is excellent news for executive and marketing teams who often need to keep tabs on product development but may need help understanding the nuts and bolts of product engineering.

As if these developments weren’t exciting enough, CAD takes the manufacturing process further by integrating with 3D printers to create product mock-ups. While these models won’t be as robust as the final product, they’ll be able to give teams and clients an idea of how it will look and feel, calibrating expectations and resulting in higher satisfaction with the end product.

The Advantages and Disadvantages of CAD for Manufacturers

There’s little doubt that CAD has been helpful for the manufacturing industry, as it can be used in many ways throughout the manufacturing process. However, CAD has both pros and cons.

Benefits of CAD

What are the advantages of CAD? Using CAD has a plethora of benefits for businesses in the manufacturing industry. Read on to discover how CAD improves the manufacturing process across the board.

Automation

CAD software is at the forefront of automation in the manufacturing industry. If your machinery can interpret schematic documents created with CAD, you’ll be able to create a speedier and more efficient production process, which ultimately helps reduce costs.

Efficiency

One of the most significant advantages of CAD is that it doesn’t just speed up the manufacturing process. It shortens the entire timeline from product design to deployment. Product designers can quickly create components for a product with built-in measuring tools and the ability to copy, paste, and resize without making an entirely new hand drawing.

Because the digital environment makes your processes so efficient, you’ll reap the benefits of outsourcing CAD translations and designs without hiring a third party.

Precision

The excellent news is that increasing automation and efficiency doesn’t mean designers and engineers must sacrifice accuracy. Using CAD software with all the available digital tools means an even greater level of precision than when designers create visuals by hand. Human error is significantly reduced, bridging the gap between the initial design schematic and the final product.

Visualization

The 3D visualization of all your designs is one of the most significant advantages of CAD software. Because you can see the product come to life, you can better evaluate it for any necessary changes. 

One of the most practical applications of CAD customization includes allowing for more adjustments to be made in the design phase. That results in a better end product and lessens the need for expensive tweaks. This already-efficient process is further enhanced when manufacturing enterprises combine CAD with CPQ to let the customers design and modify their products.

Sharing

Only some people involved in the manufacturing process know how to use CAD software. These digital platforms allow designers and engineers to save their files in shareable formats so anyone can view them and understand their vision for the product. The whole team can give feedback on the design to ensure they’re all on the same page. That reduces disagreements and manufacturing issues down the line.

Disadvantages of CAD

While CAD has very few downsides, business owners need to know how to avoid the possible pitfalls of using this software.

Technology Breakdowns

Anyone who has used a computer knows they are prone to malfunctions. You can lose precious design work due to hardware malfunctions, viruses, or even hackers.

However, it’s important to note that this isn’t a reason to miss out on the advantages of CAD drawings. Instead, it should motivate those using the software to regularly monitor their system for potential threats or issues. This way, you can rest assured that your software will function properly and your designs will always be stored securely. 

Budgetary Considerations

New CAD systems will require a significant upfront investment. Not only do you need to purchase the software and infrastructure, but you’ll also need to spend time and money training your employees to use it to its fullest potential. You’ll also have to stay on top of necessary software and operating system updates to maintain security and ensure continuous access to critical features.

Still, it’s important to note that although purchasing CAD software may require a budgetary investment, the return on that investment will make the move well worth it. Not only will it save you a great deal of time, but it also has the potential to impact your bottom line positively.

Pairing CAD and CPQ for Ultimate Efficiency

The advantages of CAD systems regarding the design and manufacturing process are clear. However, CAD benefits go far beyond this, especially when combined with other tools like CPQ.

CPQ (Configure, Price, Quote) streamlines sales processes. The buying journey doesn’t start with payment or product delivery — it begins with design. Pairing CPQ with CAD allows your business to avoid costly quoting errors that slow down productivity, removing manual steps and replacing them with automation you need to thrive in the era of customer-centered mass customization manufacturing.

Using CPQ and CAD, customers can use a self-service 3D visualization platform to customize their products in real-time and get immediate and accurate pricing for their configured model based on your set pricing criteria. Auto-delivered shop-floor-ready documents facilitate a smooth and quick transition from sales to manufacturing, all with customer satisfaction as the ultimate goal.

Get the Right Tools for a Successful Business with Tacton

Using CAD technology is all about utilizing automation and visualization to their fullest potential to create efficiency and precision in manufacturing. The good news? The same can be said of our CPQ platform. When pairing the advantages of cad, it can simplify and elevate your entire customer journey from the excitement of custom creation to the delight of timely delivery.

With Tacton Systems’ CPQ software, your enterprise will save time and money. Plus, your sales and engineering teams will have the tools they need to thrive, and your customers will be happy with quick turnaround on their custom-configured products.

Contact us today to learn how our CPQ solution can take your manufacturing business to the next level.

Sustainability in Manufacturing: Use Green Business Practices to Do Good and Attract Brand Loyalty

The modern-day green movement began in the 1960s in response to North America’s rapid post-World War II industrialization. As manufacturing increased to all-time highs, so did air pollution and the harm it brings to people and the environment. 

Earth Day, the United States Environmental Protection Agency (EPA), and environmental legislation like the Clean Water and Clean Air Acts were all born during this period in response to the ecological crisis created by the manufacturing boom. The federal government and citizens alike knew something had to be done to balance the need for manufacturing with a requirement to care for the environment and the people who rely on it daily. 

The solution? Sustainable manufacturing went from simply being a good idea to becoming a priority investment for business owners. In the following sections, you’ll learn what sustainable manufacturing is, why it matters to the industry’s longevity, and how your business can benefit from sustainable practices.

What Is Sustainable Manufacturing?

The United States Department of Commerce defines sustainable manufacturing as manufacturing processes with four critical and distinct characteristics:

• Economically sound
• Conserves energy and natural resources
• Minimizes negative environmental impacts
• Increases safety for all stakeholders

To that end, sustainability in manufacturing is about so much more than simply “going green.” Instead, the US EPA asks manufacturing enterprises to reduce consumption, waste, and emissions to protect the well-being of citizens around the nation and the globe and ensure they can live safely in their communities.

Why Sustainability in Manufacturing Matters

Nowadays, all stakeholders expect manufacturing enterprises to commit to sustainability. When business owners consider shifting their processes to embrace a greener approach, they must realize they can benefit just as much as the community and the environment. 

Most people adopt a sustainability mindset because they know it’s good for the environment. However, you may not realize that adopting environmentally sound practices can be mutually beneficial. How would a manufacturer benefit from sustainability? Here’s a short rundown of what’s possible with a different approach.

Meeting Stakeholder Demands

Around 2009, retail giant Walmart rolled out its sustainability index, giving all products in its stores an environmental rating. These days, consumers and businesses are paying more attention to the products they purchase and making more of an effort to support green companies. If your customers expect you to maintain sustainable practices, you should take their concerns seriously.

Increase Your Business Value

Simply put, studies show that environmentally friendly companies have higher valuations than businesses that don’t do well in that category. Investors know that a lack of environmental responsibility is a financial and legal risk. Consequently, they may be less likely to want to put their money into something that may ruin their reputation with the public or put their money at risk.

Scaling Back the Budget

While shifting to sustainability in manufacturing may require an initial financial investment, it can save your business a great deal of money in the long run. Often, adopting sustainable practices allows you to increase productivity and do more with fewer resources. Some studies indicate that you may see a reduction of up to 20% in your energy bills, which is a big deal for growing enterprises.

Boosting Your Bottom Line

Saving money on energy costs isn’t the only way to increase your revenue. Surveys show that more than half of small and medium-sized enterprises invest in technology and products that reduce their carbon footprint. Going green allows your large business to take advantage of changing market sentiment and create products that other companies want to buy.

Attracting Top Talent

Global workplace surveys indicate that young employees desire workplaces where owners and managers are aware of their company’s impact on the environment and are actively moving toward decarbonization. If you want to attract and keep today’s top talent in your manufacturing business, it’s vital that you take steps to reduce waste, conserve energy, and prioritize environmental safety.

Sustainable Manufacturing Practices for Your Business

Sustainability in manufacturing may sound like a great idea, but you may need more information about implementing it in your enterprise. It’s crucial for you to figure out how to create sustainable business practices on a foundational level so that investors, employees, and the community at large can see and understand how it plays out in your day-to-day processes.

In this section, you’ll learn several key areas you should be focusing on to improve your manufacturing sustainability and best practices for making the switch.

Product Design

There’s no way around it — cost-optimization and sustainability manufacturing in product design is necessary. According to investment firm Ernst & Young, 80% of a product’s lifetime emissions can be determined by what happens at the product design stage. While using more environmentally-friendly materials to design products is one way lower emissions, there are other solutions to focus on.

For example, computer-assisted design (CAD) technology increases the accuracy of drawings and makes them more robust. It allows customers and engineers to analyze designs thoroughly before documents make it to the shop floor.

When you can get the design right, less time and materials are wasted on the way to creating the final product. In turn, this results in a significant reduction in carbon emissions.

Operational Efficiency

Achieving operational efficiency is a goal often associated with increasing the corporate bottom line. While this is undoubtedly a benefit, it’s essential to realize that it’s also at the heart of creating a culture of sustainable manufacturing.

When your operations are in order, you are better positioned to make supply chain decisions and source materials that align with your corporate sustainability values and action plan. In addition, you’ll reduce human error at every turn, contributing to an economically sound manufacturing process that reduces waste and emissions.

Energy Management

Achieving carbon neutrality should be paramount to every manufacturing organization. Not only is energy management required by law, but it plays a massive role in ensuring your company contributes to a flourishing environment. Still, energy management can be challenging to achieve, primarily because energy use can be highly distributed among facilities and processes. You may need clarification about which parts of your operation are responsible for energy waste to tackle the problem successfully.

Switching to a renewable energy source available in your area can be helpful but isn’t the end-all solution for most enterprises. It’s also critical for sustainable manufacturers to research and invest in emerging digital technologies that provide visibility into your entire operation and can contribute to lean processes, better energy usage, and waste reduction.

Best Practices for Implementation

As you seek to implement sustainable manufacturing processes at your company, you should keep the following best practices in mind:

• Assess your company’s values and ensure they align with a sustainability mindset
• Take time to communicate your values to executive staff, employees, and all corporate stakeholders to gain maximum buy-in
• Evaluate your business’ current sustainability initiatives and identify gaps
• Set priorities and create an action plan for moving toward sustainability
• Invest heavily in technology that can help you implement green practices, such as Configure, Price, Quote (CPQ) and CAD automation software
• Ensure that you find the right balance between business growth and environmental sustainability
• As you execute your strategy, find ways to create a near-immediate return on investment as you look to make long-term changes

It’s important to acknowledge that pivoting to sustainable manufacturing processes isn’t easy, especially if this hasn’t always been top of mind. When you take the time to do it right, you’ll be able to create a company culture that values sustainability and is committed to ensuring environmental preservation and safety for all.

Eco-Friendly Manufacturing with CPQ Solutions from Tacton

When it comes to practical sustainability, Configure, Price, Quote (CPQ) technology is changing the game in the manufacturing industry. CPQ software integrates with computer-aided design (CAD) automation and has native visual configuration technology to allow real-time, customer-driven customization and engineered-to-order product manufacturing. 

When customers can create the exact product they want and get clear on pricing before requests reach the manufacturing floor, everyone involved can use their time more wisely and avoid significant material waste. In this way, CPQ technology is a substantial piece in solving the sustainability puzzle.

If sustainability is your goal, Tacton can help you meet it with CPQ solutions. Contact us to discover how our platform can help you save time, reduce waste, and meet your customers’ demands for precision, customization, and sustainability.

A note about the Author:  

This edition of Tech with Tacton takes a deep dive into CPQ Software Analytics. Our author is Max Leitgeb, Configuration and Analytics Senior Product Manager at Tacton. Max is part of the original founders of Tacton and has spent more than 18 years with the company. 

With the 2010s in the rearview mirror, one thing many companies have learned is how to make data-driven decisions. These data-driven choices can be anything from why sales closes deals to how to deal with new customer demands.  

Many manufacturers are attempting to digitally transform their sales operations through Configure, Price, Quote (CPQ) software. Many individuals see CPQ as a way to accelerate the sales and quoting processes for their customers but miss out on critical insights for their business. While this is very true, CPQ gives a wealth of data that is often overlooked by customers. This data can change how your operation does business by utilizing CPQ software analytics. Analyzing these trends can offer you and your customer insights that will put them mile ahead of their competition. 

Use CPQ Analytics Software across the organization  

Using CPQ analytics, everyone from your CEO to the newest employee can benefit from the right information. With analytics, it’s easier for your sales team to see which product options are selling or offer a popular configuration of a product such as a truck that sells better with one cab as opposed to another. Eliminating unnecessary portfolio content will help your sales team by removing components and save them fewer clicks with guided selling. Simply put, removing unnecessary parameters and complexity from the product leads to less complex and fewer products needed in your stock and warehouse.  

Your engineering team can benefit from seeing which product options are selling the best and which aren’t selling at all. Identifying both necessary and unnecessary product variance will allow your engineering team to better recommend products for each unique customer product portfolio.  

Analytics can give key insight into your product portfolio. Seeing correlations between winning and losing details and product options can be a near-impossible process without a helpful tool. But with CPQ analytics it’s easier to detect both patterns and dependencies. Making actionable insights from the wealth of data can help your business grow across every department.  

 Get a better understanding of your customer 

Customers are as unique as the parameters of the products you sell. Evolving needs for your customers are a precursor for changes in your portfolio to stay competitive. Analyzing what needs-based parameters have been selected can give you valuable insights of how your products will be used. This is of course valuable for sales and engineering. Sales can learn how buyers are purchasing their products, do they like one configuration better than another? Engineering can replace parts that aren’t used and develop products and parameters that add win/loss info for portfolio and pricing development.  

By analyzing what needs-based parameters have been selected can give you valuable insights of how your product offering is seen by your customers and how to evolve it. By also taking into what is being offered and what is sold, can give you valuable insights in how to optimize your product variance and pricing. 

Designing specific configurations adapted to region, market and customer can go a long way in speeding up your sales. For example, if you sell heavy vehicles like our customer Scania, it’s possible to analyze how an option is being used. Is the option being used in a tropical or a polar climate? Knowing these parameters can help you better understand your product offering and improve who you sell to in the long run.  

Streamline inventory 

With higher custom demands there is zero-tolerance for inefficient processes for your customers. Your business shouldn’t tolerate slow processes as well. With analytics utilized and underutilized products can be quickly removed from the inventory and save you money on components and storage in the factory.  

Optimize your pricing and discounting structures  

Leaving money on the table is never an ideal situation for manufacturers. But we all know how it works, your salespeople are always discounting too heavily to get the deal. By analyzing the business situations and discounts with win-rates, you can better guide your sales peoples to maximize profit with optimal discounting levels. Finding the right discount level for every quote will make your business more profitable and make your sales team’s job a little easier. Using data trends can help support your business by creating a planned pricing optimization functionality. With analytics, you can find a discount that is optimal for getting the deal with the first quote version.   

Your manufacturing operation can be a complicated business at times. A multitude of product options, increasing customer demands and keeping your teams engaged is a constant juggling act. By forecasting using quote data, you enable you and your team to get a head start on planning your next successful venture. 

Interested in seeing more about CPQ analytics? Schedule your personalized demo with us today! Or get the CPQ Software Analytics product sheet.  

Did you know optimizing manufacturing sales with CPQ can lead to results such as:

$17.6M – Savings from reduced sales labor cost 

$6.5M – Savings from reduced order errors 

$3.36M – Savings in administration  

Those are savings that a global packaging machinery maker with a revenue of ~$12.5Billion could potentially achieve using Tacton CPQ* on an ANNUAL basis and positively impact their revenue and profitability. Yes, you read that right! (Read more about it here) 

The manufacturing industry has always been subject to fluctuations in the economy, and the past few years have been no exception. From trade wars to global pandemics, manufacturers have faced multiple challenges that have forced them to reassess their priorities and investments. 

In uncertain economic times, it’s important for manufacturers to invest wisely and strategically to ensure their businesses remain resilient and competitive. Let’s look at key investment areas for manufacturers to consider during uncertain economic times and how Configure, Price, Quote (CPQ) software is helping maximize these investments. Optimizing Manufacturing Sales with CPQ can help manufacturers become resilient no matter the challenge.

Where are manufacturers investing in 2023?   

We recently asked manufacturers which key investment areas for their digital transformation. Manufacturers are still adopting a cautious approach to investments to mitigate potential risks. Here’s some key investment areas:  

Sales (67%): 

Every year manufacturers invest in their sales operation. Whether it be solutions that streamline configuring and quoting products or tools that help understand data better, companies see the importance of optimizing the sales process.  

With less demand on the market, it’s important for manufacturers to be able to build strong relationships with their customers. When customers become more selective about how they spend their money, it’s critical to foster these relationships by helping them find the product with speed and accuracy.  

Manufacturers are also on the lookout for tools that enable their newest sales reps to come up to speed faster. This is essential as many new sales reps take on average 3 months to confidently sell products. 

The CPQ effect:  

CPQ software helps streamline sales processes by automating the configuration, pricing, and quoting processes. This reduces the time and effort required to generate a quote, freeing up sales reps to focus on other critical tasks. CPQ also enables even the newest sales rep to be able to quote with confidence.  

With Tacton CPQ software, global manufacturing leaders like Siemens reduced quoting time from 8 weeks to minutes. On average manufacturers who deploy Tacton software can see results such as:  

• 34% Efficiency increase 
• 30% Sales volume increase 
• 20% Increase in profit 

Supply Chain (63%): 

The COVID-19 pandemic has highlighted the importance of supply chain resilience, and manufacturers must invest in technologies that enable them to quickly adapt to changes in the supply chain. 

The CPQ effect:  

CPQ can help manufacturers manage the entire order process, from quote to delivery. By automating the order process, manufacturers can reduce the risk of errors and delays, improving order accuracy and speed of delivery. 

Check out the full discussion here

Product (56%): 

It may seem counterintuitive to invest in new products during a recession, but new products can help manufacturers stay competitive with light demand. Companies who continue to invest in product development can gain the edge over competitors who stick to the status quo and the products they usually sell.  

Investing in product development and improvement during a recession can help manufacturers prepare for the eventual recovery. When the economy picks up again, companies that have continued to invest in their products will be in a better position to capitalize on the increased demand. 

The CPQ effect:  

Using CPQ analytics it’s possible to understand what options and features are performing well, and which are not. Additionally, product management teams can understand profitability gaps, demand patterns and quote volumes that can help them in optimizing their business strategy and future action plans. 

What are some other common investment areas for manufacturers this year?  

Automation of internal processes (45%): 

Automation can help manufacturers reduce costs associated with labor, materials, and waste. By automating repetitive tasks, companies can improve production efficiency and reduce the need for manual labor. Automation can also help manufacturers optimize energy usage, which can lead to significant cost savings and help with upcoming sustainability regulations.  

The CPQ effect:  

CPQ can integrate into many business-critical systems for manufacturers such as ERP, CRM and CAD. These integrations enable manufacturing teams to work smoothly across different data systems with CPQ at the center, reducing errors, saving time and getting customers their products faster. At Tacton we see our CPQ integrated with some common systems like Salesforce, Microsoft Dynamics, SAP and more.

Customer self-service sales (29%):

By providing customers with self-service sales options, manufacturers can improve customer satisfaction and streamline their sales processes. Customers are able to access information and purchase products more quickly and efficiently, reducing the amount of time and resources required to manage sales inquiries and orders. This approach can also reduce the risk of errors or miscommunications that can occur when customers interact with sales representatives. 

The CPQ effect:  

With CPQ self-service, customers can select the features and options they desire, view the cost of each option, and get an accurate quote for their custom product or service. This helps to eliminate the time and resources required for salespeople to handle these tasks, reducing operational costs and allowing the sales team to focus on more complex sales opportunities. 

Optimizing manufacturing sales with CPQ for partners (28%):

Partners can help manufacturers reach new markets and customers that they may not have been able to access on their own. By leveraging the partner’s existing network and customer base, manufacturers can expand their reach without having to invest in building their own sales teams or infrastructure.  

The CPQ effect:  

Manufacturing partners often sell a range of products from different manufacturers, and managing complex configurations and pricing structures can be time-consuming and error prone. By implementing a CPQ solution, manufacturers can empower their partners to sell with confidence by providing them with a user-friendly interface to configure products and generate quotes quickly and accurately. Tacton helped HMF Group unify their sales process by making it easier for their partner network to sell.  

Maximize your 2023 investments with Tacton  

Leading manufacturers are always finding ways to stay relevant no matter the economic situation. As companies invest more into their 2023 goals it’s important to find ways to maximize these investments. Tacton Configure, Price, Quote software is helping global manufacturers maximize their investments every year.  

Providing speed and accuracy is just a small part of what our product does. With smooth integrations it’s possible to connect every system in your operation. In addition to integrations CPQ also gives better visibility on supply chains, leaving our customers ready for any challenge that may arise.  

Find out more by chatting with our experts to learn how optimizing manufacturing sales with CPQ can make all the difference!