Product portfolio optimization helps manufacturers improve margins and reduce complexity by using CPQ sales data to evaluate real product performance. Deal insights reveal which products to keep, which to fix, and which to drop, giving manufacturers a clear path to streamline their portfolio and uncover opportunities for innovation. 

For many B2B manufacturers, adding more products feels like progress. More SKUs mean more chances to meet customer needs, or so it seems. In reality, sprawling portfolios often create hidden costs: slower quoting, increased engineering workload, greater operational complexity, and shrinking margins. 

The challenge is knowing which ones actually drive value. By analyzing quoting patterns and sales behavior captured in CPQ, manufacturers can make smarter portfolio decisions, focusing resources where they matter most and even spotting gaps that spark innovation. 

The disconnect between sales volume and product profitability 

Not every product pulls its weight. Just because something is quoted often doesn’t mean it’s profitable. Many high-volume configurations require steep discounts, multiple revisions, or manual engineer intervention. These costs erode deal value and stall sales velocity. 

Some of the most quoted items in a portfolio can actually deliver slim or even negative margins. These products are often highly complex, requiring manual configuration and engineering review that eats into efficiency. Others rely on frequent discounting just to close a deal, which undercuts profitability. And many suffer from low quote-to-close ratios, where the time and effort spent preparing quotes simply doesn’t pay off.  

Warning signs include: 

• High quoting activity but poor close rates 

• Frequent discounting to win deals 

• Multiple quote revisions and manual overrides 

• Heavy reliance on engineering support 

To evaluate true product performance, manufacturers should look beyond quoting volume. 

Measure what matters with CPQ sales data 

CPQ systems capture how products behave in real-world sales scenarios.  

Instead of relying on spreadsheets or assumptions, manufacturers can measure: 

• Quote frequency vs. conversion: Does quoting effort translate into closed deals? 

• Revision and rework rates: Are products overly complex or misaligned with customer needs? 

• Discount dependency: Which products only move when margins are sacrificed? 

• Engineering time required: How much hidden cost does each product carry into the quoting cycle? 

Together, these data points show you which products are worth your team’s time and which are just noise. 

Apply the keep–fix–drop (and explore) framework 

Armed with CPQ insights, manufacturers can apply a practical framework to optimize their portfolios: 

Keep 

• High-margin products with strong quote-to-close ratios 

• Minimal rework, limited discounting 

• Steady demand from core customers

Fix 

• Products with strong revenue potential but margin pressure 

• High quoting activity but low conversion rates 

• Frequent requests for customizations (a signal for redesign or modularization) 

Drop 

• “Zombie SKUs” that are rarely quoted 

• Margin-negative products that consume engineering time 

• Legacy items that no longer fit market needs 

Explore 

• Repeated customer modification requests point to white-space opportunities 

• Products with consistent discount pressure may need new packaging or service bundles 

• Gaps in quoting patterns can signal unmet market needs worth exploring 

Italian medtech manufacturer Conf Industries used CPQ data to rationalize its product catalog, removing 50 to 60 underperforming SKUs that no longer met demand so it could focus on higher-value offerings. 

Unlock innovation through portfolio insights  

Product portfolio optimization is as much about growth and innovation as it is cutting costs. 

When manufacturers shed underperforming products, they free up engineering capacity, reduce operational drag, and focus on products that truly drive profitability. But the real opportunity lies in innovation. 

By analyzing where customers frequently request changes, where quoting stalls, or where discounts are the only way to close deals, manufacturers gain direct feedback for product strategy. CPQ data reveals where to design something better. 

This shift turns portfolio optimization from a defensive exercise into an engine for smarter, faster innovation. 

A smarter way to manage your product portfolio 

By leveraging CPQ quoting data, manufacturers can base their decisions on how products actually perform at the point of sale in real configurations, with real customers, and under real pricing conditions. This data-driven approach provides something traditional spreadsheets and sales volume reports may miss: objective visibility into product line profitability.  

Instead of assuming which SKUs are successful, you can see exactly which products close deals at full price, which ones require heavy discounting, and which ones stall the quoting process altogether. And when product, sales, and finance teams all work from the same real-world performance data, CPQ software creates a common language, driving alignment across product development, commercial strategy, and margin goals. 

Forward-thinking manufacturers are already using this lens to refine their portfolios, improve profitability, and focus resources where they matter most. If you’re not one of them yet, now is the time to discover how Tacton can help you refine your manufacturing product strategy. 

Few roles are as influential as the specification engineer in the construction and building materials industry. These engineers decide which products get specified, approved, and ultimately purchased. When a component becomes the basis of design in a specification engineer’s documentation, it often becomes the default choice for procurement.

That’s why winning the spec engineer is one of the most important opportunities for construction equipment manufacturers today. From HVAC systems to lift platforms, pumps, and industrial fans, specification decisions directly shape bills of materials (BOMs), vendor approvals, and final purchasing outcomes.

And increasingly, these decisions are happening online without ever speaking to a representative.

What specification engineers expect in a digital experience 

Spec engineers now expect self-service digital tools that give them instant access to technical product data, the ability to validate or configure at a high level, and CAD models. They aren’t waiting on quotes or clicking through static PDFs. They’re working fast, often on job sites or in the field, and they expect manufacturers to keep up. 

If your digital experience slows them down, they’ll move on to a competitor. But if you offer a seamless, engineering-grade experience through self-service configure, price, quote (CPQ) technology that puts speed, autonomy, and accuracy first, you’ll increase your chances of becoming the basis of design. 

However, it’s important to note that not all spec engineers want to perform full product configurations themselves. Many simply want to validate a model number, compare performance specs, or download compliant CAD/BIM files. Offering multiple entry points, whether deep configuration, quick model lookup, or “good-better-best” comparison enables users with different needs.

Top priorities of specification engineers in the digital journey 

Every minute spec engineers spend navigating a clunky configurator or waiting for access to product specs is time lost on a job where precision and deadlines matter. That’s why the top priority in the digital buying journey is speed and ease of use for spec engineers. They want to find the right product, validate its performance, and move forward without delays, distractions, or detours. 

Access is everything. Engineers expect: 

• Immediate entry to product selection and validation tools.
• Self-service product configurators that make it easy to validate options, build quick configurations, or select from pre-defined pathways.

Once they’ve selected a product, spec engineers look for: 

• CAD automation with the ability to download technical models instantly.
• Ungated access to those files, where possible, to avoid friction in their workflow.

They also expect tools that deliver: 

• Real-time compatibility checks.
• Instant feedback on selected options.
• Access to technical documentation needed for compliance, integration, and design validation.

Ultimately, specification engineers don’t need a premium product or the lowest price. They need a digital experience that helps them work faster, more accurately, and with full autonomy. The easier you make that process, the more likely your product is to be specified. 

Where most digital tools miss the mark 

Many digital tools still fail to meet specification engineers’ expectations. These tools often introduce friction into what should be a fast, intuitive workflow. The most common shortcomings include:

1. Barriers to independent access

Spec engineers expect to evaluate and configure products on their own, without hurdles. But many tools still: 

• Require engineers to request access or wait for approvals.

• Force conversations with sales reps before showing technical data. 

• Gate basic functionality behind forms or logins.

These delays can cause specifiers to abandon the process entirely.

2. Missing or delayed technical outputs

Even after gaining access, engineers often find that: 

• Real-time CAD output isn’t available. 

• Parametric detail is insufficient for validating designs. 

• File downloads are delayed or buried within complex workflows.

Confidence erodes without instant, accurate technical outputs.

3. Lack of pre-built configuration pathways

Not every engineer wants to start from scratch. Yet many configurators: 

• Don’t offer pre-defined templates or system presets.

• Lack guided filters to narrow options quickly. 

• Fail to support “good-better-best” or use-case-based selection flows. 

These gaps slow down experienced engineers who just want to validate a model or spec quickly.

4. Poor usability in real-world environments

Configuration tools are often built for desktop office use, but specifiers are frequently: 

• Working on-site or in the field. 

• Using mobile devices or tablets. 

• Operating in low-bandwidth conditions or multilingual teams. 

If tools aren’t responsive, mobile-ready, and intuitive, they won’t be used where it matters most. 

These platforms are designed for internal sales enablement, not for the external engineers driving product selection. And when the experience is frustrating, engineers will simply specify someone else’s product instead. 

How leading manufacturers are winning over spec engineers 

Leading manufacturers are winning over specification engineers by building a better digital experience that prioritizes autonomy, speed, and seamless access. Instead of forcing engineers to go through account managers or wait for manual responses, they provide self-directed workflows that allow for real-time product selection, validation, and documentation. 

Here’s how top-performing manufacturers are setting themselves apart:

1. Immediate access

Spec engineers don’t want to be funneled through a sales process just to get started. The best manufacturers offer: 

• Self-registration portals tailored for engineers, with no pricing visibility required.
• Instant access to configurators without triggering sales engagement.
• Exploration without friction, empowering engineers to validate performance and download files independently.

2. Ungated, actionable technical outputs

Once a product is configured, engineers want to keep moving—not wait for email approvals. Leading tools: 

• Provide instant CAD and BOM downloads, without forms or delays.
• Deliver outputs in usable formats, ready for design workflows.
• Enable specifiers to incorporate files directly into project documentation and submittals.

3. Connected, collaborative systems

Digital tools don’t exist in isolation. They need to fit within engineers’ broader workflows. That’s why successful manufacturers ensure their CPQ or selection tool has: 

• Full integration with ERP and CAD systems.
• Version control and data accuracy, reducing manual intervention.
• Tools that support collaboration across teams and allow engineers to share configurations with project stakeholders, distributors, or internal reviewers.

4. Built for field use and global access

Spec engineers often work on job sites or in the field. The best experiences are: 

• Mobile-ready and responsive across devices.
• Designed to perform in working environments.
• Multilingual, supporting engineers working with teams around the globe.

By delivering on these fronts, manufacturers make it easier for specification engineers to work independently and efficiently and for sales teams to build trust, win specs, and ultimately drive sales. 

Business impact: why engineer-friendly tools drive more conversions 

Creating a digital experience that meets the needs of specification engineers is a business advantage. When engineers can move quickly from product selection to documentation without roadblocks, the sales process accelerates. In industries where timing can determine whether a product is written into the spec or left out entirely, being first to provide a product schedule often means being first to win the deal. 

These streamlined experiences also reduce the burden on internal teams. When specifiers can self-serve, there’s less need for pre-sales engineering support, freeing up resources for more complex or high-touch opportunities. Distributors and partners benefit as well, because they can respond to specifiers’ needs with accurate information more quickly, often without needing to involve the manufacturer directly. 

Over time, tools that make engineers’ lives easier lead to stronger relationships with the engineering firms and project consultants who drive specification decisions. In a digital-first buying environment, manufacturers known for providing the best product configurator for specification engineers stand for making engineers’ work easier. 

Is your product configurator fit for spec engineers? 

Ask yourself these questions: 

• Can engineers explore your products without triggering a back-and-forth sales conversation?
  If your tool requires a conversation with sales just to explore options, it’s not truly self-service. 

• Can they go from selection to CAD file in just a few clicks?
  Speed matters. Engineers don’t want to wait for emails or navigate complex portals to get the files they need. 

• Is your configurator mobile-friendly and accessible without friction?
  Specifiers often work in the field or on-site. Your tool needs to work anywhere, on any device, without special access or software. 

• Does it integrate with quoting, BOM generation, and CAD platforms and support collaboration?
  Seamless integration reduces errors, saves time, and gives specifiers confidence in the data they’re using. 

• Do engineers actually come back to use it again?
  Repeat usage signals that your experience is adding value. If they’re not returning, there’s likely friction somewhere. 

Make it easy with Tacton 

Specification engineers aren’t chasing fancy features. They just want to get the job done quickly, independently, and accurately. If you give them a smooth, self-service product configuration experience, you’ll win their trust and their specs. 

Want to see how your product experience stacks up? Schedule a demo today and evaluate your current experience through the eyes of a specifier with Tacton. 

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When configuring products with thousands of parts, variants, and customer-specific requirements, constraint-based configuration offers the flexibility, scalability, and resilience that rule-based configuration engines simply can’t match. 

Unlike rule-based logic, which dictates a fixed path of if-then rules, constraint-based systems define what must be true for a configuration to work, no matter where the user starts. That means configure, price, quote (CPQ) systems with constraint-based engines are ideal for manufacturers who need to rapidly launch new products, support diverse markets and applications, and adapt to changing requirements without rewriting thousands of configuration rules. 

What is constraint-based configuration?  

Traditional rule-based configuration relies on rigid “if-then” statements to define how products can be built—for example, “If component A is selected, then component B must also be selected.” While this works for simple product lines, it breaks down quickly in complex scenarios. Imagine configuring a fluid system with thousands of bolts, washers, and nuts. For every valid or invalid combination, a separate rule must be written. This leads to massive rule sets that are time-consuming to build, difficult to maintain, and fragile in the face of change. 

Constraint-based configuration takes a different approach. Instead of prescribing every allowable combination, it defines the conditions that must be true for a product configuration to be valid—regardless of the order in which selections are made. It focuses on relationships and dependencies, not fixed sequences. Users can begin with any input (like material, size, or environment), and the system automatically filters and adjusts the rest in real time to ensure compatibility. 

For example, instead of writing dozens of rules to manage every nut, bolt, and washer combination, constraint-based logic might define a single rule: The bolt diameter must match the washer diameter, and both must be suitable for corrosive environments if specified. That single constraint applies broadly to reduce redundancy and simplify maintenance. This approach also allows manufacturers to define product relationships once and reuse them across product lines, customer segments, and global markets.  

Constraint-based vs. rules-based configuration: a simple breakdown 

Here’s how the two approaches stack up when it comes to supporting complex manufacturing workflows: 

Capability	Rule-based configuration	Constraint-based configuration
Maintenance effort	High (hard-coded, many-to-many)	Low (logic reused across SKUs)
New product onboarding	Slow and error-prone	Fast and scalable
Flexibility in user input	Rigid (forced paths)	Flexible (any input order)
Global/multi-market support	Difficult	Built-in with constraint layering
Coverage of product portfolio	Limited	Full (with fewer constraints)

Why complex manufacturers choose constraint-based configuration  

Constraint-based configuration changes the pace, scale, and confidence with which manufacturers operate. At Tacton, we’ve seen manufacturers across industries reduce quoting complexity when choosing constraint-based CPQ software.  

As Marlande Wesselhoft, CIO at Vantage, put it: “We ultimately selected [a CPQ with] the constraints-based methodology, considering how complex our products are and the variety of products that we have. [The team] felt very confident that the constraint-based methodology would accelerate our timeline getting our products into the platform.” That confidence in scalability and speed is echoed across industries, from elevator systems to turbines and poultry housing. 

At Siemens Energy, where every gas turbine is tailored to the customer’s power plant and site conditions, quoting used to take eight weeks and required deep engineering involvement. With more intuitive and accurate configuration, quoting takes five minutes. The product logic was maintained through thousands of business rules, making the system complex and costly to manage. After transitioning to a constraint-based approach, Siemens replaced those thousands of rules with just a few hundred constraints—dramatically simplifying system maintenance while improving accuracy and speed.  

Husky, a global leader in injection molding systems, faced similar challenges in quoting for their hot runner business. Configurations required navigating 60–70 variables per product, using spreadsheets and look-up charts that often resulted in errors, rework, or missed opportunities. With a constraint-based engine, Husky reduced solution time by 75% and eliminated incorrect configurations altogether. Their quoting process now delivers 100% error-free quotes and has become a strategic differentiator. 

Across these different industries, the impact is the same: constraint-based logic empowers manufacturers to move faster, quote smarter, and support a broader product portfolio without creating a maintenance slowdown. 

The benefits constraint-based CPQ 

Constraint-based CPQ transforms how manufacturers bring products to market. You get:  

• Broader product portfolio coverage. Traditional systems, especially homegrown CPQ, often can’t scale beyond a subset of offerings. Constraint logic allows you to model and support up to 100% of your product range without exponential increases in rules. 

• Faster onboarding and less tribal knowledge. Because the logic lives in the system—not in a senior engineer’s head—new hires can contribute faster, and sales reps don’t have to rely on specialists for every quote. 

• Built-in adaptability for local markets. Apply specific constraints by geography, application, or regulation without duplicating configuration logic. 

• Resilience during change. Adding a new product variant or retiring an obsolete component only requires a logic update—not a cascade of rewrites across thousands of rules. 

• An intuitive experience for sellers and partners. Users don’t need to know the full product structure or follow a rigid process. Whether they start with the customer’s environment, preferred feature, or performance need, the system intelligently guides them to a valid solution. This makes configuration accessible for channel partners, distributors, and less technical teams. 

• Future-ready architecture. Constraint-based systems are more adaptable to AI, guided selling, and optimization, making them ideal foundations for long-term digital transformation. 

This approach also supports configure-to-order (CTO) and engineer-to-order (ETO) workflows, which demand advanced compatibility logic and customization. 

Many leading manufacturers choose a constraint-based CPQ like Tacton for this reason: it lets them stay agile, scale globally, and serve customers without compromise. 

Evaluating your current configuration approach 

If you’re unsure whether your current system is holding you back, ask yourself these questions: 

• Are we writing hundreds (or thousands) of rules per product line? 

• Does every product update require developer intervention? 

• Do users complain that configuration is too rigid or confusing? Is the configuration experience flexible, or does it force users into a rigid sequence? 

• Are we able to cover our full product portfolio, or are we limited to a subset due to system complexity? 

• How often do we need developer or IT intervention to update logic or fix configuration errors? 

• Is our system slowing down quoting, product launches, or onboarding? 

If the answer to any of these is yes, it’s time to rethink your configuration strategy. 

Future-proof your configuration strategy 

For manufacturers managing high product complexity, global reach, or customization requirements, constraint-based configuration is the best logic for manufacturing built to scale. 

Tacton’s constraint-based CPQ software gives you a faster, more flexible, and more future-ready way to sell and deliver complex products. Download our full guide to constraint-based configuration to discover how it can future-proof your product configuration. Or, reach out to see it in action.  

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