As a CIO, you need solutions that drive digital transformation without adding complexity and cost. A homegrown CPQ may seem like the best way to align to your company’s needs and complexity, but many IT leaders find it quickly becomes a resource drain—expensive to build and maintain and difficult to scale. 

Tacton CPQ is purpose-built for complex manufacturers, eliminating the risks of custom development while ensuring flexibility, seamless integration, and long-term scalability. There are three core ways that Tacton helps CIOs create a more cost-effective, future-proof solution. 

1. Homegrown CPQ Is a Multi-Year, Multi-Million Dollar Commitment

Time to value is mission critical for staying competitive and realizing ROI. But building a CPQ is a long-term, resource-intensive commitment. Developing an enterprise-grade CPQ solution requires a full-scale software development team and years of effort before delivering business value.  

Breaking Down the Resource Investment 

Role	Team Size	Estimated Cost (Annual)
Software Developers (Front-End & Back-End)	5-10	$1M – $2M
Solution Architects	1-2	$250K – $500K
DevOps Engineers	1-2	$200K – $400K
Business Analysts	2-3	$200K – $400K
Subject Matter Experts (SMEs)	2-3	$200K – $400K
QA Engineers	2-3	$150K – $300K
IT Security Specialists	1-2	$150K – $300K
Project Managers	1-2	$150K – $300K
Total Estimated Cost	15-25 FTEs	$2.5M – $5M+ per year

Beyond the cost of a full-time development team—often made up of multiple engineers, architects, and project managers—time to value is a critical factor. Even with a viable solution, the timeline to get there is long and complex. A homegrown CPQ implementation often unfolds like this: 

• Six to 12 months to build a working prototype 

• 12 to 24 months to reach a minimally viable solution  

• Two or more years to realize true business impact  

 This prolonged timeline delays efficiency gains, strains IT resources, and increases the risk of misalignment with evolving business needs. 

The Alternative: Value in Just Six to Eight Months 

Rather than investing years into development, Tacton CPQ provides manufacturers with a purpose-built, out-of-the-box solution that can be deployed in months rather than years. With industry-specific capabilities, seamless integrations, and continuous innovation, Tacton eliminates the burden of custom development while ensuring a faster, lower-risk path to transformation. 

 2. The Hidden Cost of Maintenance

The greater challenge—and cost—comes after deployment in maintaining and evolving the system over time. Unlike an out-of-the-box solution, which benefits from ongoing vendor-driven enhancements, a custom-made CPQ requires continuous internal investment to remain functional, secure, and aligned with business needs. 

The True Cost of CPQ Maintenance 

The annual cost of maintaining a homegrown CPQ is typically 20-40% of the initial build cost, translating to $1M–$4M per year depending on complexity. These costs stem from: 

• Bug fixes and system stability: IT teams must continuously monitor, troubleshoot, and resolve performance issues, ensuring the CPQ system remains reliable. 

• Pricing and product updates: Every adjustment to pricing rules, product configurations, and sales workflows requires dedicated engineering time and testing. 

• Feature enhancements: As business needs evolve, so does the need for new capabilities. Each enhancement adds to the ongoing backlog, consuming IT resources and budget. 

Unlike a vendor-supported CPQ, where updates are delivered seamlessly, every improvement in a homegrown system is an internal project that leads to longer timelines, increased costs, and IT backlog.

3. Your Homegrown CPQ Is Built for Today, But What About Tomorrow?

A homegrown CPQ may seem like a tailored solution today, but as your business evolves, it can quickly become a liability. Maintaining a custom-built CPQ demands ongoing investment and introduces risks that can hinder long-term growth. 

• Losing key talent, like engineers or developers, can leave your CPQ a black box. Developers stay an average of 2–3 years, and when they leave, your system becomes difficult to manage. Even simple updates can cause delays, disruptions, and extra costs due to knowledge gaps. With Tacton CPQ, you get a continuously evolving, enterprise-grade solution—no internal expertise required. 

• Security and compliance require constant attention. Homegrown CPQ solutions often lack enterprise-grade security, leaving sensitive data exposed. Keeping up with GDPR, ISO 27001, and industry regulations requires continuous IT oversight. Tacton CPQ is ISO 27001 certified and ensures built-in security and automatic compliance updates without adding to IT’s workload. 

• Scaling with business growth adds complexity and cost. Expanding product lines, pricing models, or markets requires continuous custom development. More complexity means higher IT overhead, more staff, and constant maintenance. Tacton CPQ’s cloud-native architecture scales effortlessly, adapting as your business grows. 

The Smarter Path Forward: Why Tacton CPQ is the Right Partner for IT Leaders 

As a CIO, your mandate is to drive business growth while optimizing IT resources. A homegrown CPQ is often seen as a customized solution, but in reality, it ties up critical talent, inflates costs, and delays business impact. Tacton CPQ offers a smarter, more agile alternative to deliver scalability, security, and continuous innovation without the burden of custom development. 

How Tacton CPQ Outperforms a Homegrown Solution 

Factor	Build In-House	Invest in Tacton CPQ
Time to Value	2-3 years	6-8 months
Total Cost Over 5 Years	$10M – $20M+	Fraction of that
Security & Compliance	High risk, requires IT oversight	ISO 27001 certified & always up-to-date
Scalability	Limited, requires custom dev work	Cloud-native & scales with your business
Continuous Innovation	Requires dedicated R&D team	Automatic updates & new features
Total IT Burden	Heavy, requiring ongoing development	Minimal, fully managed by Tacton

With Tacton CPQ, manufacturers get an enterprise-grade solution that accelerates implementation, lowers costs, and eliminates IT headaches.

• Fast implementation: Avoid 2–3 years of custom development. 

• Lower total cost of ownership: No surprise costs or IT overhead. 

• Enterprise-grade security: ISO 27001 certified, built-in compliance. 

• Evolving capabilities: Continuous innovation without internal maintenance. 

• Scalable & future-proof: Grows with your business, adapting to evolving needs. 

Why take on the cost and complexity of building a CPQ when you can partner with a solution designed for long-term success? Tacton CPQ delivers faster ROI, lower IT burden, and the scalability manufacturers need to stay competitive. Connect with us today to see how Tacton can support your business. 

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Smart manufacturing is a booming field expected to grow from $233 billion to $479 billion over the next five years. Growing customer demands and production complexity are requiring brands to turn to emerging technology and automation tools to improve their operations and deliver a better experience for their teams and their customers.

It’s important to understand the core principles and technologies driving smarter production, from AI-driven automation to robotics. However, leading manufacturers aren’t stopping at production efficiency; they’re extending these principles beyond the factory floor to reimagine the buyer journey and commercial strategy for long-term growth. This evolution is shaping the future of manufacturing, turning operational excellence into a competitive advantage across the entire business.

What Is Smart Manufacturing?  

Smart manufacturing uses advanced technology, such as robotics, AI, and cloud computing, to increase efficiency at every step of production. Unlike traditional manufacturing, which relies on stable, repetitive assembly lines, smart manufacturing is dynamic, leveraging real-time intelligence to optimize operations.  

This category of manufacturing is quickly being adopted in facilities—often referred to as smart factories—across countries like China, the United States, and India.  

Smart manufacturing typically involves three core components:  

• Automation: Using technology to automate repetitive processes and complete tasks more quickly 

• Quality Control: Using advanced technology to identify and correct errors, which helps prevent faulty products from going to market 

• Optimization: Helping organizations analyze manufacturing data to optimize their processes and identify opportunities for reducing costs and waste 

The primary focus of smart manufacturing is on enhancing production process efficiency. However, manufacturers should not stop at the production line, as these smart manufacturing principles—automation, data-driven optimization, and quality control—can also be extended to the customer’s journey and the sales process. By doing so, manufacturers can build a more agile and seamless operation across the entire business ecosystem.  

The Benefits of Smart Manufacturing Processes 

By reducing inefficiencies in production, smart manufacturing is not only lowering production costs but also enabling manufacturers to be more agile in responding to market shifts and evolving customer demands. The ability to adapt quickly strengthens manufacturers’ competitive edge and their ability to deliver high-quality products faster and more cost-effectively. 

Manufacturers are seeing benefits like: 

• Improved efficiency and productivity: Smart manufacturing systems help production teams increase their output without compromising quality. Robots, for example, can often complete rote manufacturing tasks faster than humans.  

• Enhanced product quality: AI-powered IoT devices can identify and prevent possible manufacturing errors, resulting in higher-quality products.  

• Real-time monitoring and maintenance: IoT sensors and devices constantly monitor your manufacturing systems, helping you schedule preventive maintenance and keep essential devices functioning properly.  

• Cost reduction and resource optimization: AI and smart technology can help identify opportunities to save money throughout production. For example, they can create more efficient labor schedules or reallocate machinery for more efficient operations.  

• Environmental sustainability: Smart manufacturing systems allow you to track the waste generated by your production processes and find ways to reduce it.  

• Improved warehouse safety: Tools like IoT devices and digital twins identify possible safety risks, allowing you to address them and protect your team.  

Manufacturers have the opportunity to build on these benefits by extending smart manufacturing principles to customer engagement. While smarter production improves profitability by reducing costs and inefficiencies, smarter selling enhances margins by driving deeper market penetration, strengthening customer relationships, and accelerating revenue growth. 

The Smart Manufacturing Technology Powering Innovation 

The benefits of smart manufacturing are clear, but how do smart factories get there? Several innovative technologies are used throughout smart factories to make operations more efficient.  

Automation and Robotics  

Many smart factories use robots to automate production processes, such as transporting items from place to place or assembling products. Automating these repetitive tasks gives employees more time to focus on complex challenges that require human input. It also helps factories increase their output and get products to market faster.  

Internet of Things (IoT)  

The Internet of Things is a network of devices connected to the internet that share data with other devices or systems. Smart thermostats, sensors, and security systems are common examples of IoT devices.  

IoT devices monitor equipment performance, predict maintenance needs, and improve workplace safety. By minimizing downtime and ensuring consistent production, manufacturers can reliably fulfill orders and maintain high service levels for their customers. 

Artificial Intelligence (AI)  

AI is transforming smart manufacturing by enabling real-time decision-making, predictive analytics, and process optimization. For example, AI is often used in demand forecasting to analyze market trends, customer orders, and supply chain data, helping manufacturers better align production capacity with actual demand.

When integrated with IoT devices and other smart technologies, AI can analyze vast amounts of manufacturing data, identifying inefficiencies and quality issues before they become costly problems. Machine learning algorithms detect patterns in production performance, allowing manufacturers to predict maintenance needs, reduce downtime, and optimize resource allocation.

Cloud and Edge Computing  

Instead of having physical servers on-premise, smart manufacturers are switching to cloud computing. Cloud-based systems enhance scalability and data access, while edge computing improves real-time processing for faster responses. These technologies ensure that real-time production insights are accessible across the organization, improving coordination between operations, engineering, and sales teams. 

Digital Twins  

A digital twin is a virtual replica of a real-life production system. It’s powered by data from the physical system, which is collected in real time. Digital twins are generally created using AI to optimize manufacturing processes. Digitizing these systems makes it easier to catch inefficiencies and optimize processes. You can also use digital twins to simulate future scenarios and see how your system would perform.  

Blockchain 

Blockchain ensures secure, real-time tracking of materials and compliance across supply chains. This transparency enhances trust with customers by providing verifiable sourcing and sustainability credentials for manufactured products. 

Connecting Innovation with Business Strategy 

As these technologies continue to evolve, they are not just reshaping production processes but also redefining how manufacturers interact with customers and bring products to market. The future of smart manufacturing will be driven by the seamless integration of these innovations with business strategy, so that companies can remain competitive in complex and dynamic markets. 

The Next Evolution of Smart Manufacturing: Bridging the Gap to Smarter Selling   

Smart manufacturing optimizes production to meet customer demands, but if buyer engagement remains outdated, much of that value is left untapped. Smarter manufacturing strategies should encompass how complex products are sold, not just how they’re produced or designed. As manufacturing technology advances, companies must integrate innovation with customer engagement and sales strategies. The future of manufacturing involves aligning production capabilities with customer needs.  

How can the same principles (e.g., technological innovation, automation, quality control, data-driven decision-making) apply to smarter selling? 

Sales Automation and Guided Selling 

Manufacturers can automate sales processes by streamlining configuration and pricing of complex products. Configure, Price, Quote (CPQ) software, when used as a frontline sales tool, integrates product engineering rules with sales logic to help sales build solutions quickly and autonomously.  

Emerging AI-driven guided selling tools can analyze customer needs, recommend optimal configurations, and ensure that what is sold aligns with production capabilities. This reduces errors and shortens sales cycles, while enhancing the buying experience with real-time, data-driven recommendations. 

Pricing and Proposal Consistency  

Just as quality control ensures high production standards, manufacturers can use sales automation to apply consistent pricing logic to quotes and proposals. By leveraging real-time cost and production data, manufacturers can offer dynamic pricing that reflects production constraints, competitive positioning, and profitability goals.  

Visualization in the Buying Experience

Augmented Reality (AR) and Virtual Reality (VR) are changing how manufacturers showcase complex products, making the buying experience more interactive and informed. AR enables customers to visualize products in their real-world environment, while VR immerses them in a fully digital experience where they can explore configurations and customizations firsthand. By reducing reliance on physical prototypes and simplifying complex decision-making, these technologies help manufacturers communicate value more effectively and accelerate the path to purchase.

Data-Driven Sales Performance and Profitability Insights 

Smart manufacturing principles don’t just improve operations; they also enable data-driven sales strategies. By leveraging analytics tools, manufacturers can track their most profitable products, assess sales performance across regions and industries, and identify opportunities for growth. AI-driven predictive analytics can further aid teams in forecasting demand and predicting customer behavior to adapt their sales strategies.  

Efficiency Across Systems 

Smart selling is most effective when data is seamlessly integrated across systems and teams can work with one source of truth. This connectivity ensures that sales teams have real-time access to production constraints, lead times, and engineering feasibility, resulting in a more accurate and efficient sales process that aligns with manufacturing realities. 

Sustainability as a Sales Differentiator 

Real-time tracking of carbon footprints, material choices, and sustainability metrics is no longer just for regulatory compliance, it’s a value driver in the sales conversation. Customers are increasingly prioritizing sustainable options, and manufacturers that integrate sustainability data into the sales process can better align with customer values and differentiate their offerings. 

Embrace Efficiency with Tacton 

Bridge the gap between production and sales by equipping your teams with the same efficiency and intelligence that drive modern manufacturing. Tacton’s CPQ solutions help you streamline complex configurations, apply real-time engineering and pricing rules for accurate quotes, and provide data-driven insights to optimize sales. As a 3x Leader in the Gartner® Magic Quadrant™ for CPQ Applications, we help manufacturers ensure every quote is manufacturable, profitable, and aligned with business goals—so you can sell with confidence and stay ahead in a competitive market.

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Rapid technological advancements and shifting customer expectations demand faster time-to-market than ever before. As a result, manufacturers need efficient ways to translate product and engineering data into sales-ready offerings. While product lifecycle management (PLM) systems maintain the latest product designs and specifications, turning that technical data into something sales teams can confidently quote remains a persistent challenge.  

Integrating PLM and Configure, Price, Quote (CPQ) software creates a shared language between engineering and sales, ensuring teams work with the most current product information to easily bring accurate configurations to customers. To make the most effective use of these tools together, consider how the following benefits and best practices can help you solve your operational challenges both today and tomorrow. 

CPQ Creates a Common Language Between Sales and Product Data 

Your sales and engineering teams speak different languages. Sales structures offerings around customer needs and market requirements, while engineering defines them through technical specifications and manufacturing constraints within the PLM. It’s the CPQ that creates the common language and bridges the gap between engineering and sales.  

Without PLM and CPQ integration, sales must manually interpret engineering data, risking misalignment between sales quotes and engineering bills of materials (BOMs). Alternatively, involving an engineer to support in the sales case occupies engineering resources and creates delays while waiting for an engineer to become available. This disconnect creates bottlenecks in bringing products to market. 

Example: integration in elevator manufacturing

What does effective integration look like in practice?

Image a sales rep at an elevator manufacturer who needs to configure a solution for a high-rise building with specific weight capacity, speed, and safety requirements. With PLM-CPQ integration, they always work with the latest engineering rules and engineering-approved components—whether it’s an upgraded energy-efficient motor, a newly certified safety brake, or a redesigned control panel. If the customer requests a non-standard option, such as a custom cabin design or advanced energy-efficient features, sales can immediately trigger an engineering review within CPQ, getting faster approval without disrupting the sales cycle. 

The Benefits of PLM and CPQ Integration Across the Value Chain

The seamless flow of product and sales data creates an impact across the business, from the customer experience to the relationship with suppliers.  

1. Faster Order Processing and Shorter Lead Times

Complex product configurations often require extensive engineering validation, delaying the sales cycle. PLM-CPQ integration eliminates these bottlenecks by embedding engineering-approved configurations directly into the quoting process. This allows sales teams to generate accurate quotes instantly without waiting for manual reviews. Automated BOM creation further streamlines procurement and manufacturing, accelerating production timelines and improving on-time delivery.

2. Increased Engineering Efficiency and Innovation

Engineering teams often get bogged down with repetitive sales support, reviewing configurations to ensure manufacturability. By integrating PLM and CPQ, product rules are pre-validated, significantly reducing engineering workload. This frees up engineers to focus on strategic initiatives like product innovation, process improvements, and faster time-to-market for new offerings. 

3. Enhanced Manufacturing Intelligence and Demand Forecasting

By linking sales configurations to real-time manufacturing data, businesses can anticipate demand more accurately and adjust production capacity proactively. Additionally, real-time CPQ insights into the most frequently configured products help engineers identify which features drive revenue and where to focus innovation. 

4. Seamless Change Management and Data Integrity

Because product changes impact sales, procurement, and manufacturing, version control is essential. Connecting your PLM and CPQ guarantees that engineering updates automatically flow to sales tools, preventing discrepancies between what’s quoted and what can be built. If a customer requires something that is outside of the configurable option, sales can more easily request approval from engineering within the CPQ without additional back-and-forth. 

5. Superior Customer Relationships and Higher Win Rates

Customer loyalty starts with the sales process. When sales and engineering work seamlessly, then sales can deliver error-free proposals that build trust from the start. That trust makes customers more likely to engage in long-term partnerships, opening the door for larger deals, expanded solutions, and future cross-sell or upsell opportunities. 

6. Digital Self-Service and Omnichannel Enablement

Many manufacturers want to offer self-service quoting and configuration, but inconsistent pricing and configuration often lead to failed initiatives. PLM-CPQ integration guarantees that every selection—whether made by a salesperson, distributor, or partner—is valid and correctly priced. When sales teams and channel partners can generate error-free proposals with confidence, manufacturers create a strong foundation for scalable self-service applications, which can be a major differentiator in buyer engagement.  

Integration Considerations for Maximizing Scalability and Sales Channel Flexibility 

Integration is a strategic investment in efficiency, scalability, and customer experience. To fully realize its potential, manufacturers should consider how their integration strategy can scale and adapt to changing business objectives or customer demands. 

• Balancing flexibility with control: Sales teams and customers want to configure products easily, but that flexibility can’t come at the expense of engineering accuracy. The best integrations embed engineering rules into the CPQ system, allowing self-service and guided selling experiences that are both flexible and constrained by manufacturability. This ensures customers can configure products without unknowingly creating issues downstream. 

• Driving cross-departmental alignment: Integration success depends on collaboration between engineering, sales, IT, and operations. If the integration is designed without input from all stakeholders, it can either be too rigid (limiting sales) or too loose (causing engineering and production issues). A well-planned PLM and CPQ integration ensures everyone is working from the same product logic, reducing friction between departments. 

• Adapting to evolving business models: The manufacturing industry is shifting toward mass customization, service selling, and self-service buying experiences. Without a scalable PLM-CPQ foundation, companies struggle to support these models without increasing complexity. A well-integrated system ensures tools can support everything from complex engineered-to-order (ETO) products to modular and subscription-based offerings. 

Boost Efficiency with Tacton’s CPQ Integrations 

Integrating PLM and CPQ is a crucial step toward reducing inefficiencies and accelerating time-to-market. A well-connected digital thread ensures that product data flows seamlessly from engineering through sales and into production, eliminating costly misalignment and manual work. 

Purpose-built for manufacturing, Tacton’s CPQ simplifies complex configurations and the quote-to-order process, while seamlessly integrating with your full tech stack. Tacton makes integration easy with both open APIs and a no-code integration framework: Connect-to-Anything, powered by Workato. Whether manufacturers need a fully customized integration or a plug-and-play approach, these options allow PLM, CPQ, ERP, and other critical systems to connect without complex IT projects.  

By automating the flow of product data, Tacton ensures that customer needs are instantly translated into manufacturable configurations, quotes are optimized for both technical accuracy and competitiveness, and order fulfillment data is generated automatically to eliminate errors and delays. Manufacturers gain a fully integrated process that moves from configuration to production with accuracy and speed. Learn more about our solutions by scheduling a quick demo. 

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Manufacturers are under increasing pressure to deliver accurate, personalized and competitive quotes quickly, while managing complex product configurations. Traditional configure, price, quote (CPQ) systems have long helped manufacturers streamline complex product configuration and pricing, but continued demand for sales efficiency and customization requires CPQ to evolve in lockstep.  

AI-driven CPQ solutions are entering the market to deliver these experiences at scale. From predictive pricing to demand forecasting and personalized recommendations, AI is revolutionizing how businesses configure products, personalize sales strategies, optimize pricing, and drive revenue. 

Where CPQ Stands Today: AI’s Existing Role in Configuration 

AI has been a core component of some CPQ systems for decades—long before machine learning and generative AI became widespread. However, this type of AI works differently from today’s large language models or predictive engines. Symbolic AI, which uses logical reasoning and mathematical constraints rather than learned patterns, has been a key technology in constraint-based CPQ platforms. It enables manufacturers to manage millions of product variations while ensuring only valid, manufacturable configurations. Unlike AI that predicts outcomes based on past data, it systematically applies predefined constraints to eliminate errors and inefficiencies before they occur.

Whether a CPQ uses machine learning, symbolic AI, or no AI at all, the future of CPQ will be driven by greater process efficiency, smarter guided selling, and deeper data analysis to optimize decision-making and improve the buying experience.

Emerging Use Cases of AI in CPQ  

New use cases for AI are taking CPQ beyond a process-enhancing tool to one that drives the buyer experience and internal decision-making. At the core are three important tools that manufacturers can expect to become more pervasive.  

Predictive pricing for optimal profitability 

AI analyzes historical sales data, market trends, and competitor pricing to determine the most competitive and profitable price for each deal. AI helps businesses maximize their sales potential by dynamically adjusting prices in response to demand, customer behavior, and external factors. Offering the right price at the right time increases conversion rates, while optimized discounts and promotions improve profit margins. 

Additionally, AI can reduce the need for manual pricing adjustments, streamlining the sales process. AI can even recommend special pricing for strategic customers, ensuring a competitive advantage while maintaining overall profitability. 

Demand forecasting for smarter sales strategies 

Demand forecasting, powered by machine learning, leverages real-time and historical data to predict customer buying patterns, enabling businesses to stay ahead of market trends. This analysis enables manufacturers to anticipate customer needs before they arise, ensuring they are prepared to meet demand.  

AI can also strengthen inventory management by optimizing stock levels, reducing supply chain disruptions, and minimizing excess inventory costs.  

Personalized recommendations for higher conversions 

AI enables hyper-personalization in CPQ, leveraging customer purchase history, preferences, and industry trends to deliver highly tailored recommendations. AI can suggest product configurations that match individual customer needs, ensuring that every offer is relevant and compelling.   

AI can identify upselling and cross-selling opportunities, helping sales teams maximize deal value while giving customers solutions that align with their requirements. For example, AI-enabled CPQ tools also enable dynamic bundling, allowing manufacturers to create personalized packages that tailor product value propositions to each customer.  

In short, AI-driven recommendations create a seamless, customer-centric sales experience, improving the likelihood of closing deals. 

What’s Next for AI in CPQ? 

As AI capabilities continue to evolve, new innovations are shaping the future of CPQ. While many of these applications are still emerging, manufacturers should be aware of how AI-driven CPQ advancements may impact their CPQ strategies in the years ahead. 

• Automated quote optimization: AI will help sales reps configure products, generate quotes, and make real-time recommendations—it can even translate those quotes for global markets. 

• AI-driven negotiation strategies: Advanced AI models will analyze customer behavior to predict negotiation tactics, helping sales reps make the best counteroffers and close deals faster. 

• Self-service AI CPQ: As more manufacturers provide self-service experiences, customers will be able to configure products, receive AI-driven pricing suggestions, and generate quotes independently, reducing the need for manual sales involvement and accelerating the buying process.  

While these advancements show AI’s growing role in CPQ, manufacturers should evaluate how these innovations align with their specific needs, balancing automation with the need for accuracy, control, and customer trust.

Smarter Selling Starts with Precision and Automation 

As manufacturers navigate increasing product complexity and customer demands, CPQ must provide more than just automation. It must ensure accuracy, efficiency, and seamless collaboration across the value chain and the customer journey. 

Tacton’s CPQ is built on a powerful, constraint-based configuration engine, ensuring that every product configuration is valid, manufacturable, and optimized from the start. By streamlining the sales process and integrating with existing business systems, Tacton helps manufacturers: 

• Eliminate configuration errors  

• Speed up quoting while ensuring engineering and pricing accuracy 

• Enhance the customer experience with guided, error-free product configuration 

• Seamlessly connect data through deep integrations with ERP, CRM, and PLM 

For manufacturers selling highly configurable products, precision and efficiency are critical. Tacton delivers the capabilities needed to simplify complexity, helping you sell smarter and with confidence. 

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Manufacturers win the trust of their customers when sales and production move as one. Customers expect speed, accuracy, and reliability, but when sales teams quote solutions without real-time insight into costs, inventory, or production capacity, they’re making promises production may not be able to keep. These disconnects lead to costly adjustments, delays, and frustrated customers. ERP and CPQ integration provides a single source of truth and the critical foundation for aligning sales promises with production reality. 

Moving Beyond Basic CRM-ERP Connection 

Many manufacturers have taken the first step by connecting their CRM and ERP systems to streamline basic order processing. But even with CPQ functionality in their CRM, sales teams still configure and quote products without the technical knowledge of specific manufacturing constraints. While they can push order data to ERP after a sale, they lack the real-time production intelligence needed during crucial customer conversations. 

Integrating CPQ and ERP allows you to connect sales directly to production data. Instead of working with outdated pricing information or waiting for engineering validation, sales teams can access live inventory and capacity data while configuring products. They can confidently apply accurate pricing based on current costs and generate quotes that are right the first time. When a quote is approved, it automatically creates a complete order record in your ERP, kickstarting order fulfillment for customers and delivering on the speed and reliability they expect.  

What Effective CPQ and ERP Integration Looks Like for Manufacturers 

Your ERP tracks essential information on inventory levels, delivery times, available parts, and manufacturing costs. When connected, the CPQ pulls this data automatically, so that sales teams or end customers can build a configurable product and generate an accurate quote.  

Once a quote is approved, your CPQ automatically generates a sales order and Bill of Materials (BOM) in the ERP, triggering procurement, order fulfillment, and invoicing.  

Example 

Imagine a sales representative configuring a long-haul freight truck. The CPQ pulls key data from the ERP, such as available engine models, transmission options, or chassis types, ensuring that every component is compatible and in stock. If a specific engine type requires a special cooling system that has a longer lead time, CPQ factors this into the delivery estimate and costs. The order information is then transferred to the ERP to manage billing, adjust inventory, and track order fulfillment. 

Key Benefits of ERP and CPQ Integration 

When processes are siloed and manual, it increases the workload on your teams and leaves greater room for error, delays, and lost deals.  

A connected tech stack offers substantial benefits to your customer’s experience and your bottom line. 

1. Increased sales team productivity and autonomy

Sales teams no longer need to rely on engineering to verify pricing, availability, or configuration feasibility. The CPQ has real-time access to the ERP’s accurate production and pricing data, allowing your sales team to generate quotes more independently. By reducing administrative work and streamlining approvals, sales can build relationships and close deals faster than the competition. 

2. Consistent and fluid customer experiences 

Automated data syncing reduces the number of adjustments needed between sales and production, so customers experience less friction in the buying process. They receive quotes quickly and seamlessly, with consistent pricing across channels, whether they’re speaking to sales directly or using self-service.  

3. Greater profitability and margin control

Within the CPQ, sales can apply dynamic pricing strategies that reflect real-time costs, demand fluctuations, and business rules. This automation prevents underquoting or unprofitable discounts to protect margins.   

Your ERP, with additional integration between a CRM and CPQ, also provides leadership with a full view of profitability at the product, customer, and regional levels. ERP houses critical cost and margin data, while CRM captures sales history and customer-specific pricing agreements. Together, this enables data-driven decisions that optimize pricing strategies, sales performance, and market expansion efforts.  

4. Better lead time management 

Production data enable sales to create quotes that reflect realistic fulfillment timelines. With a clear view of inventory and production capacity, sales can create quotes that reflect realistic fulfillment timelines and set accurate customer expectations.  

In addition, manufacturers can generate accurate quotes that flow directly into the ERP system as executable orders, reducing the technical department’s workload—in some cases by 80-90%. This automation eliminates manual order processing, minimizes errors, and ensures production teams receive the right information instantly. As a result, lead times improve, customers get their products faster, and technical teams can focus on higher-value work. 

5. Seamless order changes 

Change is inevitable in manufacturing sales as customers refine their needs or new requirements emerge after a quote is sent. With ERP and CPQ integration, updates to configurations, pricing, or delivery timelines are immediately reflected for production in the ERP.  

5 Best Practices for ERP and CPQ Integration 

Both an ERP and CPQ should be able to adapt to the evolution of your business and your products. Consider how integration can become an opportunity to set your systems up for scalability and adaptability as you grow.  

1. Choose a CPQ designed for complex manufacturing—not just your ERP

Don’t compromise on your ability to configure complex solutions for the sake of automatic integration. ERP-native CPQs may offer basic quoting capabilities, but manufacturers need tools built for sophisticated product configurations, advanced engineering rules, and manufacturing-specific constraints.  

Instead, look for a purpose-built CPQ that integrates seamlessly with ERP, whether through an out-of-the-box connection or API.  

2. Ensure data accuracy, standardization, and governance

Inconsistent or duplicate product information between systems leads to errors in quoting and order execution. To prevent this, manufacturers should standardize product and pricing structures across CPQ and ERP. It’s also important to integrate with a CPQ that’s compliant with global data security standards. 

3. Consider pre-built ERP integrations vs custom development

Many CPQ solutions require extensive IT resources for integration. CPQ solutions with pre-built ERP connectors support BOM creation, dynamic pricing updates, and order processing, without the need for coding. If API-based integration is required, ensure the CPQ has secure, well-documented APIs that allow for flexible, scalable connectivity.

4. Plan for scalability and ERP upgrades

Your CPQ should work with your ERP today—but also evolve with your business. Assess whether a CPQ can adapt to future ERP upgrades (e.g., cloud migrations, SAP S/4HANA adoption) and support pricing and configuration for different regions or currencies. 

Think across the entire value chain. CPQ integration can extend beyond ERP to other vital systems, like CRM, eCommerce, and distributor portals. These integrations give you the opportunity to create a fully connected sales ecosystem. 

5. Develop a strong training and change management plan

While IT teams lead the technical integration, success depends on clear communication of benefits to sales and operations. If CPQ isn’t currently part of your team’s workflow, work with key stakeholders in sales and operations early in the process to create champions for transformation and to understand their current pain points. Tailor training to these roles, demonstrating how integration with CPQ simplifies processes.

Connect Your ERP with Tacton’s CPQ 

Tacton CPQ is purpose-built for manufacturers of complex, configurable products, enabling faster, more accurate quoting while ensuring every sale aligns with real production capabilities.  

With Connect to Anything, powered by Workato, integrating Tacton’s CPQ with your ERP is seamless, whether you use SAP, Microsoft Dynamics 365, Oracle ERP Cloud, IFS, or another software.  

Our no-code connectors eliminate the need for extensive IT resources, allowing you to sync pricing, inventory, BOMs, and order data effortlessly. However, manufacturers can also tailor their integrations through open rich REST APIs for greater flexibility. From streamlining the quote-to-order process to enhancing buyer engagement, Tacton ensures a smooth, scalable integration with the systems that power your business. 

Explore Tacton’s CPQ Integrations 

Configure, price, quote (CPQ) software has historically been considered a back-end operational tool. Manufacturers have primarily relied on CPQ to streamline internal processes, ensure pricing accuracy, and reduce errors in product configuration.  

However, with increasingly complex sales cycles and rising customer expectations, CPQ is evolving into a powerful frontline tool that directly enhances sales effectiveness and strengthens customer engagement. Manufacturers now have the opportunity to leverage CPQ not just for efficiency, but as a competitive advantage in the sales process.

Shrinking the Sales Cycle 

CPQ software delivers real-time access to critical sales tools. Instead of waiting on back-office teams for configurations and quotes, sales representatives can now generate precise, validated quotes on the spot.  

Cloud-based CPQ solutions further enhance this capability, allowing sales teams to access the system from anywhere—in the office, in the field, or at a customer site. Their mobility ensures seamless collaboration and closes deals faster. In addition to empowering sales teams, modern CPQ tools can act as self-service portals for customers. Buyers can independently configure products, explore pricing options, and even generate quotes—streamlining the buying process and reducing dependency on sales reps. 

Enhancing Customer Engagement with Visual Configuration 

Modern CPQ systems incorporate visualization tools, including virtual and augmented reality, that enable customers to see their configured products in real time and even in their real environments. An interactive experience allows buyers to adjust specifications, explore different options, and understand how changes impact cost and functionality.  

Integrating visualization into the sales process through CPQ bridges the gap between complex engineering specifications and customer expectations, leading to higher engagement and increased conversion rates. 

Streamlining Quoting and Proposal Generation 

In the past, creating detailed quotes involved manual calculations, multiple approval layers, and a high risk of errors. Today, AI-driven CPQ solutions use predefined pricing rules, discount structures, and approval workflows to produce accurate quotes almost instantly. Automation reduces sellers’ administrative workload and ensures pricing consistency and compliance with company policies. 

Moreover, CPQ can integrate seamlessly with other enterprise systems, such as customer relationship management (CRM) and enterprise resource planning (ERP) platforms. Integrations help eliminate discrepancies and align the sales process with business objectives. Specifically, integrating CPQ allows sales teams to access up-to-date product information, inventory levels, and pricing structures.  

Enabling Data-driven Sales Strategies 

CPQ is no longer just a tool for automating tasks; it’s now a valuable source of sales intelligence. CPQ captures customer preferences, buying behavior, and market trends, enabling sales teams to make informed decisions about pricing strategies, product recommendations, and bundling options. 

Predictive analytics help CPQ platforms identify cross-selling and upselling opportunities. Historical data analysis can help CPQ suggest complementary products or services that align with a customer’s purchase history, increasing deal value while providing tailored solutions. Additionally, AI-driven recommendations personalize the buying experience, suggesting the best options for customers based on their unique needs and preferences. 

Supporting Omnichannel Sales Models 

Manufacturers increasingly operate across multiple sales channels, from direct sales teams to e-commerce platforms and partner networks. Standardization across channels helps maintain brand integrity and ensures consistent pricing and configurations in global markets. 

CPQ enables cross-channel consistency in product configurations, pricing, and quoting across all these channels. That way, customers have a unified experience, whether they are engaging with a sales representative, configuring a product online, or working with a distributor.  

The Future of CPQ in Manufacturing Sales 

Tomorrow’s most competitive businesses will recognize CPQ software as an essential frontline tool for manufacturing sales today. By integrating real time configuration, intelligent pricing, and automated quoting into the sales process, CPQ is helping manufacturers stay competitive and meet the demands of modern buyers. For sales teams, this means less time spent on administrative tasks and more time engaging with customers and closing deals.  

Contact us to learn how Tacton’s CPQ technology can strengthen your sales strategy and deliver results. 

 

Smarter, faster, and more personalized—manufacturers of complex products are feeling the pressure to deliver a more B2C-like buying experience. Traditionally, customer relationship management (CRM) has been the backbone of sales engagement, helping teams track relationships and manage workflows. According to Deloitte, 96% of industrial manufacturers either use or plan to use a CRM to enhance digital customer experiences. But CRM alone cannot support the complex configurations and real-time quoting that make smarter, faster, and more personalized possible.  

True transformation happens when front-end sales engagement connects with dynamic selling capabilities like CPQ (Configure, Price, Quote). With CRM and CPQ integration, manufacturers can generate faster, more accurate proposals within the sales process, ensuring a seamless, high-confidence buyer experience.  

Complex Product Sales: Where CRM Meets Its Limits

While CRM systems excel at tracking customer relationships and sales opportunities, they hit critical limitations when it comes to selling configurable products. A basic CRM can capture customer requirements and track opportunities, but it can’t guide sales teams through finding the optimal product configuration, nor can it validate complex technical rules or generate accurate pricing based on thousands of possible combinations.

For manufacturers of complex products, this creates a dangerous gap between understanding customer needs and translating them into viable solutions. Sales teams need more than just customer data – they need intelligent guidance to configure the right product for each unique situation.

What is the Role of CPQ in Sales? 

CPQ (Configure, Price, Quote) software extends the CRM’s role by enabling sales teams to configure products, apply pricing rules, and generate quotes that reflect real-time business constraints. The software translates complex engineering rules and dependencies into simple questions about customer requirements, automatically suggesting compatible options and pricing and ruling out combinations that can’t be manufactured.

Though some CPQ platforms have light CRM functionalities, such as displaying accounts or opportunities, their core function is to turn customer intent into a viable, deliverable solution. CPQ integration eliminates the back-and-forth between sales, engineering, and finance, allowing sales to close deals faster. 

How Does CRM and CPQ Integration Work? 

Integrating CRM and quoting software allows account and opportunity data from your CRM to flow automatically to the CPQ. The sales professional can then tie a configured solution or product to a specific account opportunity. Once the sales rep generates a final quote, line item and pricing data syncs back into the CRM for better pipeline visibility and sales forecasting. 

Imagine a medical device manufacturer using Microsoft Dynamics 365 to manage its sales pipeline and track customer opportunities. When a hospital requests a customized surgical instrument, the CRM captures key details (e.g., the hospital’s purchasing history, required specifications, pricing details, etc.). This data flows into the CPQ, which applies industry regulations, material constraints, and compatibility rules to ensure only valid configurations are created. Once the finalized quote is created, line item and pricing data syncs back to the CRM, ensuring sales teams have full visibility into the deal’s status and projected revenue.  

The Cost of Siloed Systems 

A fast, seamless sales process is your company’s greatest competitive advantage. Manual data entry and a slow, disjointed quoting process put revenue and trust at risk. When sales teams constantly rely on engineering for highly personalized product configurations and pricing, faster competitors step in. In addition, manual pricing adjustments leave further room for errors and volatility, resulting in customer mistrust.  

Yet clunky integration between a CPQ and CRM can be just as costly as IT bottlenecks and poor scalability leads to slower sales cycles. Manufacturers can help their sales function hit the ground running by taking a thoughtful approach to integration.  

The Benefits of Integrating CRM and CPQ: Trust and Confidence for Both Buyer and Seller 

Accelerating deal closure is essential to winning today’s digital customers, but this requires sales teams to navigate complex configurations and pricing, often without deep technical expertise. A CPQ enhances the relationship building within the CRM by offering the support sales teams need to confidently sell highly personalized solutions.

1. Streamlined workflows keep sales moving

Automating the transition from opportunity to quote eliminates delays caused by manual processes and disconnected systems. Sales teams can access approved configurations and pricing instantly, reducing reliance on engineering, increasing quote volume, and speeding up quote generation from weeks to minutes. 

2. Accurate quotes that build trust

Pricing errors and misconfigurations slow deals and weaken customer confidence. A connected CPQ and CRM ensure real-time accuracy, reducing back-and-forth revisions and accelerating approvals, so customers receive error-free proposals the first time. 

3. Consistent buying experiences across every sales channel

Whether customers engage through a sales rep, distributor, or self-service platform, CPQ and CRM integration ensures pricing, configurations, and proposals remain consistent across channels. This creates a unified, seamless experience, no matter how or where the customer buys—and that consistency leads to greater trust. 

4. Powerful visualization to support smarter buying decisions

Buyers want to see exactly what they’re getting, especially with complex products that must adhere to specific industry regulations or fit an intricate floor plan. Integrating CPQ with CRM enables real-time visualization earlier in the sales process, so you can ensure product-fit right away. Today’s CPQ platforms provide virtual and augmented reality visualization, as well as CAD integration, so customers can see how products fit into their working environment or meet regulatory compliance.  

5. Stronger sales insights 

Automatic data integration gives sales teams immediate visibility into deal progress, pricing trends, and customer buying behaviors. This leads to more accurate revenue forecasting and helps sales teams anticipate demand, optimize pricing, and close deals faster. 

6. More cross-sell and upsell opportunities

With CPQ and CRM working together, sales teams can use past purchases, customer preferences, and configuration trends to offer the right complementary products at the right time. Automated recommendations and data-driven insights make cross-selling and upselling easier and more effective. 

7. Confident sales teams

When experienced sales reps leave or product lines grow more complex, teams often struggle to keep momentum. CPQ integration equips sales teams with clear product options, automated pricing rules, and pre-approved configurations, so they can sell confidently without needing deep technical knowledge. 

Best Practices and Considerations for CPQ Integration  

No single piece of technology is a silver bullet. The best solutions align with your workflows to deliver real value and avoid overcomplicated processes. Consider these best practices for integration. 

1. Weigh pre-built connectors vs custom integration

CPQ solutions with no- or low-code, pre-built connectors offer a faster, low-maintenance integration with CRMs, ERPs, and other sales tools. For small teams, this provides necessary speed-to-value. In contrast, custom integrations and open APIs require heavier development and troubleshooting from IT teams. However, this offers long-term flexibility for growing enterprises. 

2. Prioritize capabilities built for complex manufacturing

Many CPQ solutions offer quoting, but not all can handle high product variance, complex configurations, and regulatory requirements. Integrating your CRM with a CPQ designed for manufacturing ensures accurate, compliant, and efficient proposals—without manual workarounds.

3. Ensure scalability and flexibility

System rigidity stops growth in its tracks. Look for a solution that adapts to growing product lines, integrates with multiple systems, and supports multi-site, multi-region, and multi-language capabilities.

4. Maintain data accuracy and consistency

Clean, structured data is critical for accurate pricing, forecasting, and reporting. Before integration, ensure CRM and CPQ data are aligned to prevent discrepancies in customer records, product configurations, and pricing rules.

5. Involve sales end-users early in the decision-making process

A successful integration requires end-user buy-in, specifically from sales. User adoption and continuous refinement are just as important as the technology itself. Ensure the CPQ enhances rather than complicates workflows. Consult your end-users in the evaluation and help them understand how these tools improve front-end sales engagement, rather than simply supporting back-end execution.  

The Advantages of Using a Purpose-Built CPQ for Manufacturing 

CRM-native CPQs offer convenience, but they often lack the depth needed for manufacturing, leading to manual workarounds, slower sales cycles, and errors. The best approach? Use the best CRM for managing customer relationships and the best CPQ for handling complex configurations and quoting. You’ll get greater alignment between sales, engineering, and production—without the compromise.  

CRM-Native CPQ 

• Easy CRM integration for basic quoting needs 

• Simple setup for businesses with straightforward products 

• Customization limitations for industry-specific needs  

Purpose-Built CPQ 

• Built for complex manufacturing workflows with advanced configuration rules 

• Integrates with any CRM, ERP, or sales platform 

• Scalable and adaptable to multi-channel sales and global operations 

• Requires alignment with existing systems, but offers greater long-term benefits 

Choosing the Right Type of Integration for Your Business 

CPQ CRM integrations exist in several forms, but the approach you choose will depend on your tech stack, IT resources, and long-term business needs.  

• Custom point-to-point integrations directly connect two systems, like CPQ and CRM, for fast data exchange. However, they need ongoing IT maintenance and don’t easily scale as business needs evolve. 

• Middleware or integration platforms act as a central hub that bridges multiple systems, standardizing data flow and reducing the need for custom coding. They simplify complex integrations by ensuring seamless communication across CRM, CPQ, ERP, and other enterprise tools. 

• Open APIs create a standardized way for systems to exchange data, enabling flexibility and control between CPQ, CRM, ERP, and other business integrations. While powerful, they require IT expertise to develop and maintain. 

Transform the Buyer Experience with Tacton’s CPQ 

A purpose-built CPQ enhances your CRM capabilities and empowers manufacturers to sell complex products with B2C-like agility. Tacton transforms buyer engagement with industry-leading configuration, pricing, and quoting solutions, and is recognized as a leader in Gartner’s Magic Quadrant for CPQ applications. 

With Tacton, manufacturers can simplify CRM CPQ integration with platforms like Salesforce, Microsoft Dynamics 365, SAP Sales Cloud, and Oracle NetSuite, using pre-built connectors. Connect-to-Anything, powered by Workato gives manufacturers the ability to integrate with 600+ enterprise applications using a no-code solution. For enterprises needing deeper customization, system-agnostic integrations provide flexibility to connect with ERP, PLM, PIM, and other critical systems independently. With robust integrations, manufacturers can streamline operations across their entire value chain.  

Explore Tacton’s Integration Capabilities  

We’re thrilled to announce that for the third time in a row, Tacton has been positioned as a Leader in the Gartner® Magic Quadrant™ for CPQ (Configure, Price, Quote) Applications.  

At Tacton, we feel this recognition validates our mission to redefine buyer engagement in the manufacturing sector. Our leadership position is a testament to our focus on providing innovative solutions designed specifically to address the complex needs of manufacturers.  

Our innovation took center stage at our customer event, Tacton Summit, where we unveiled transformative new features, including Connect to Anything, Composable CPQ approach, and self-service.  These advancements underscore our dedication to empowering manufacturers to stay ahead in today’s fast-changing landscape. 

Why we believe Tacton is recognized as a Leader 

• 25 Years of Innovation: Since 1998, Tacton has been at the forefront of CPQ innovation, driving the category forward with unparalleled expertise and customer-centric solutions. 
• Manufacturing Focus: Our deep understanding of the unique challenges faced by manufacturers enables us to offer tailored solutions that simplify complexity and deliver measurable results. 
• Trusted Partner: With a global customer base and a proven track record, Tacton is a trusted partner for organizations seeking to revolutionize their sales and quoting processes. 

Why your CPQ choice matters 

Selecting the right CPQ solution is an important decision for manufacturers. While a generic CPQ system might seem like an appealing option at first glance, it often falls short when addressing the unique challenges of complex manufacturing environments. Partnering with a CPQ Leader specifically designed for complex manufacturing ensures you benefit from solutions that are purpose-built to address your industry’s specific demands. Manufacturers require a CPQ solution that not only handles intricate product configurations but also integrates seamlessly with existing processes to deliver accurate and reliable quotes. 

We understand the critical role CPQ plays in driving success for manufacturers. Our solutions enable businesses to engage buyers with personalized and dynamic quoting experiences, ensuring seamless and professional interactions. With intelligent automation, we streamline operations, reducing errors, speeding up quote generation, and delivering precise results, even in highly complex configurations. This capability empowers sales teams to deliver accurate and competitive quotes, addressing the specific needs of each customer. 

In an industry where precision, speed, and adaptability define success, partnering with the right CPQ provider is essential. Tacton’s manufacturing-focused solutions are purpose-built to tackle these challenges head-on, equipping manufacturers with the tools they need to thrive and outpace the competition. 

Find out why Tacton was named a Leader 

This recognition in the Magic Quadrant ™ is the latest in a series of milestones for Tacton. We have gained accolades from the analyst community, including being recognized as a Major Player in IDC’s MarketScape for APQ Applications 2024-2025, as well as in MGI Research’s CPQ Buyers Guide, where we were ranked as the top CPQ solution and the number one CPQ product, further solidifying our leadership in the CPQ market. 

Download your complimentary copy of the 2025 Gartner ® Magic Quadrant ™ for CPQ Applications and find out why Tacton was named a Leader for the third time in a row.  

Read the report

 

Gartner Disclaimer 

This graphic was published by Gartner, Inc. as part of a larger research document and should be evaluated in the context of the entire document. The Gartner document is available upon request from Tacton.  

Gartner does not endorse any vendor, product or service depicted in its research publications and does not advise technology users to select only those vendors with the highest ratings or other designation. Gartner research publications consist of the opinions of Gartner’s research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.  

GARTNER is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally, Magic Quadrant is a registered trademark of Gartner, Inc. and/or its affiliates and is used herein with permission. All rights reserved. 

Gartner, Magic Quadrant for Configure, Price and Quote Applications, By Mark Lewis, Luke Tipping, 31 January 2025. 

In manufacturing, efficiency and collaboration are essential for success. Yet, many manufacturers face challenges when managing disparate systems—CPQ platforms, ERPs, CRMs, PLM, analytics and eCommerce tools that don’t communicate seamlessly. At Tacton, we understand that integration is more than just a technical need—it’s the key to unlocking the full potential of your digital ecosystem. 

By enabling seamless connections, manufacturers can transform operations, empower teams, and deliver exceptional customer experiences. Let’s explore how the right integrations inspire agility, productivity, and innovation in manufacturing. 

The Power of Connected Systems in Manufacturing 

Imagine a manufacturing process where engineering, sales, and operations work in sync. Sales reps configure custom solutions with real-time data from the ERP, engineering teams collaborate effortlessly on updated designs, and operations ensure timely delivery based on accurate supply chain insights. This isn’t just a vision; its what seamless integration enables. 

Disconnected systems often lead to: 

• Missed Opportunities: Siloed data limits visibility, making it harder to identify customer needs or market trends 

• Manual Bottlenecks: Without automation, repetitive tasks like data entry slow down workflows and increase errors 

• Inefficient Collaboration: Teams waste time reconciling disparate data, hindering their ability to work efficiently 

Connected systems eliminate these barriers, fostering streamlined operations and more strategic decision-making. 

 

Integration in Action: Real-World Scenarios 

Seamless integration has the power to revolutionize every aspect of manufacturing, from sales to supply chain management. Here’s how manufacturers are leveraging integration to drive efficiency, accuracy, and innovation: 

Optimizing Sales and Quoting 

Integrating CPQ systems with ERPs like SAP or Microsoft Dynamics empowers sales teams to provide precise, real-time quotes. Access to accurate inventory levels, lead times, and production costs not only reduces quoting errors but also accelerates order processing, creating a smoother and more reliable customer experience. 

Strengthening Customer Relationships 

Integrating CPQ with CRM platforms like Salesforce or Oracle empowers manufacturers to deliver personalized customer experiences. Sales teams can access real-time customer insights, such as past purchases, preferences, and open opportunities, directly within the CPQ interface. This integration not only streamlines the sales process but also strengthens customer relationships by providing tailored recommendations and fostering trust. 

Enabling Connected Engineering 

By linking PLM and PIM systems with CPQ, manufacturers ensure that every configuration is based on the latest product designs and specifications. This reduces costly rework and enhances accuracy, enabling engineering and sales teams to collaborate more effectively. 

Enhancing Supply Chain Efficiency 

Automated data flows between ERP and supply chain management tools allow manufacturers to quickly adjust to disruptions, such as delays or shortages. With seamless integration, production schedules remain intact, and customer expectations are consistently met. 

Simplifying Contracts with CLM Integration 

Integrating CPQ with Contract Lifecycle Management (CLM) tools like Docusign or Icertis streamlines the contract process. Quotes and contracts can be sent for e-signatures and securely stored automatically. Additionally, pulling existing agreements into CPQ for new opportunities ensures compliance and reduces the risk of missed details or errors. 

Delivering Data-Driven Insights 

Connecting BI tools like Power BI or Google Analytics with CPQ and operational systems enables manufacturers to gain actionable insights into production efficiency, customer behavior, and sales trends. These insights drive better forecasting, smarter pricing strategies, and improved resource allocation. 

By adopting seamless integration, manufacturers can unlock the potential of their technology stack, fostering collaboration, improving operational efficiency, and delivering exceptional value to customers. 

Why Integration Matters More Than Ever 

The manufacturing industry is at a turning point. Customer expectations are evolving, supply chains are more dynamic, and the pace of innovation is accelerating. Integration is no longer optional; it’s the foundation of a modern enterprise. 

When systems are connected, manufacturers benefit from: 

• Improved Collaboration: Teams across departments have access to the same real-time data, fostering better communication and decision-making 

• Increased Efficiency: Automation eliminates manual tasks, allowing teams to focus on high-value activities 

• Enhanced Agility: Manufacturers can adapt quickly to changing customer demands or supply chain disruptions 

 

Tacton’s Vision for Integration 

At Tacton, we understand that every manufacturer’s integration needs are unique. That’s why we’ve designed our integration ecosystem to offer flexibility and scalability. Whether your goal is to connect systems with a no-code platform or leverage robust REST APIs for custom integrations, Tacton CPQ allows you to seamlessly connect on your terms.  

This commitment to innovation led to the recent launch of Connect to Anything, our no-code integration platform powered by Workato. With over 600 pre-built connectors, Connect to Anything allows manufacturers to break down silos, synchronize data and automate workflows without needing to rely on extensive IT resources. 

 

Start Your Integration Journey 

Integration isn’t just about connecting systems; it’s about enabling growth, innovation, and resilience. With Tacton’s Connect to Anything, manufacturers can move beyond the limitations of fragmented tools and achieve seamless connectivity that drives results. 

Learn more about Connect to Anything 

The manufacturing sector is transforming as it continues to embrace new technological advancements and adapt to an increasingly complex and dynamic market. Digital technologies are reshaping nearly all facets of manufacturing, enabling companies to enhance operational efficiency, meet the diverse needs of their customers, and remain competitive. 

What is Digital Transformation? 

Digital transformation is the integration of digital technologies into all aspects of a business to change its operation and offer more value to customers. It involves utilizing tools such as artificial intelligence (AI), the Internet of Things (IoT), data analytics, and cloud computing to streamline processes, enhance decision-making, and create new opportunities for growth and innovation. 

 In manufacturing, digital transformation involves shifting from traditional industry methods to advanced, data-driven solutions that improve efficiency and agility. Companies may leverage IoT-based predictive maintenance, robotics for automation, and real-time data analytics to enhance productivity and reduce downtime. 

 The use of Configure, Price, Quote (CPQ) software in the manufacturing sector is among the top digital transformation trends forecasted for 2025. With these tools in their arsenals, sales teams can automatically generate quotes for their products and services, eliminating errors, saving time, and enhancing customer experiences.  

 Read on to discover the nine trends in digital transformation influencing the application of CPQ tools in the manufacturing industry. 

9 Digitalization Trends in Manufacturing CPQ Software 

Many business owners in the manufacturing sector can agree that CPQ systems are no longer just tools for automated pricing. They have now evolved into comprehensive platforms that streamline operations, boost customer service, and drive strategic growth. These are the key trends shaping the use of CPQ software in manufacturing and their impact on business operations and customer interactions. 

1. CAD and CPQ Systems 

In 2025, CAD automation with CPQ software could transform how manufacturers approach product customization. Traditionally, designing customized products required a back-and-forth process between sales, engineering, and production teams. This increased the likelihood of delays and potential errors. However, CAD and CPQ systems are accelerating the process. 

But how exactly does this integration work? Well, CPQ software is equipped with CAD capabilities to allow sales teams to capture customer requirements during the product configuration process. Then, these specifications are automatically fed into the CAD system, generating precise CAD drawings without manual intervention. Thus, every configuration aligns with engineering constraints, reducing the chances of making design errors. 

 For example, an industrial machinery manufacturer using an integrated CAD-CPQ system can offer customers real-time adjustments to their configurations. When a buyer specifies changes to a machine’s dimensions, the system will automatically update the CAD drawings and provide an instant quote, allowing them to enjoy tailored solutions. 

2. AI and Machine Learning 

Expect AI and machine learning (ML) to enhance the CPQ process in 2025. Today, we have AI-driven CPQ Analytics solutions that scrutinize vast amounts of customer data, including purchase history, preferences, and industry trends, to recommend product configurations matching a customer’s needs and thus speed up the sales process. Meanwhile, ML algorithms assess market trends, competitor pricing, and historical sales data. Both technologies help to determine optimal pricing strategies, allowing companies to balance competitiveness with profitability. 

3. Visual Product Configuration 

The increased use of visual configuration tools within CPQ software also makes the list of exciting transformation trends for 2025. These tools leverage advanced 3D rendering to allow customers to interact with digital models of their desired products in real-time. Customers can rotate, zoom, and customize every detail of a product, from dimensions and materials to colors and add-ons.  

 Incorporating visual product configuration into CPQ systems reduces the likelihood of errors in product specifications. The software enforces rules and constraints during the configuration process, ensuring that all selections are feasible and compliant with manufacturing capabilities.  

 In addition, visual product configuration tools enhance customer engagement by making the sales process more interactive and enjoyable. Customers may feel more invested in a purchase when they can see the tangible representation of the product they want. The emotional connection created during visual product configuration, combined with the precision and transparency offered by the tools, often leads to higher conversion rates and increased customer satisfaction.  

4. Intelligent Automation  

The increased adoption of Intelligent automation (IA) is among the many digital transformation trends on the horizon. These technologies, which include artificial intelligence, ML, robotic process automation (RPA), and data analytics, streamline and optimize workflows and decision-making.  

 Remember, IA goes beyond basic automation. They incorporate cognitive capabilities as well, enabling systems to learn, adapt, and respond to complex scenarios. In addition, the technologies can seamlessly connect CPQ systems with manufacturing execution systems (MES) and enterprise resource planning (ERP) platforms to ensure that orders flow directly from customer interaction into production. 

5. Decentralized Manufacturing 

Decentralized manufacturing is a production strategy where manufacturing operations are distributed across multiple locations instead of being centralized in a single facility. In 2025, these decentralized operations are set to increase, especially with the use of CPQ software that facilitates accurate product configuration and quoting across different regions. CPQ solutions will promote the following: 

• Standardization Across Facilities: CPQ tools will enable manufacturers to maintain uniformity in product specifications and pricing across multiple sites, regardless of geographical or operational differences. 

• Real-Time Collaboration: Cloud-based CPQ solutions will allow teams across various facilities to access the same data, ensuring faster responses to customer inquiries. 

• Localized Customization: Decentralized manufacturing thrives on meeting localized customer preferences. With CPQ software, companies will quickly adapt to regional demands while maintaining global standards. 

Global manufacturers like Tesla and Siemens are among those that have embraced decentralized manufacturing to meet market requirements and improve supply chain efficiency. With CPQ tools, more companies could join them in the near future. 

6. Sustainability in Manufacturing 

Sustainability will continue to be a major focus for manufacturers in 2025, driven by growing regulatory pressures, consumer demand for eco-friendly products, and the global urgency to address climate change. We expect more companies to integrate and utilize cutting-edge technologies to minimize environmental impact while increasing profitability.  

 The adoption of digitalization tools like CPQ software could be one of the most common strategies used to promote sustainability. Since it provides precise product configurations that fit customers’ requirements, it eliminates the need for guesswork in production. Manufacturers can produce exactly what is ordered, reducing surplus inventory and material waste, which aligns with sustainability goals.   

7. Smart Factories and Supply Chains 

In 2025, the manufacturing industry will enter a new era where smart factories and digitally optimized supply chains will become essential to maintain competitiveness. Smart factories leverage digital tools for monitoring, predictive maintenance, and autonomous operations. Similarly, supply chains powered by digitalization ensure transparency, resilience, and efficiency. When both are integrated with CPQ software, they can:   

• Promote dynamic pricing based on real-time production costs, material availability, and energy consumption. 

• Help manufacturers to ensure accurate delivery timelines and reduce errors in order processing, enhancing customer satisfaction.  

• Allow for scalable, low-volume production runs.  

Siemens, for instance, has implemented IoT-enabled smart factory solutions, integrating real-time data with CPQ systems to guarantee customized and efficient production.  

8. Dark Factories 

Dark factories are not entirely new, but their adoption could increase in 2025. These facilities operate without the need for human presence, relying entirely on advanced robotics, AI, and IoT systems to run production lines 24/7. The term “dark factory” itself originates from the concept that no human workers are required, so lighting is unnecessary. 

 These dark factories often rely on CPQ tools to bridge customer demands with autonomous capabilities. The software translates customer requirements into detailed manufacturing instructions, which are fed directly into automated systems to aid customization.  

 Furthermore, CPQ solutions integrated with IoT systems allow manufacturers to adjust production parameters dynamically. For example, a sudden change in material availability or customer specifications can be reflected instantly in the manufacturing process. 

One company operating a dark factory is Fanuc in Japan. Its robots are assembled autonomously by other robots, showcasing the concept’s full potential. Other organizations will undoubtedly embrace these factories in the future.  

9. Upskilling Employees 

As digital tools transform the manufacturing industry, upskilling employees is becoming essential for staying competitive. This trend is driven by the wave of retirements from experienced workers who are taking decades of institutional knowledge with them. Meanwhile, newer employees often lack expertise in complex configurations, creating a knowledge gap.  2025 will reflect this as more companies prioritize upskilling to prepare their workers to adapt to a changing market.  

Introducing CPQ software into their operations may help workers simplify and streamline their work. By automating complex configurations and centralizing knowledge, CPQ systems reduce reliance on seasoned employees while helping newer team members get up to speed quickly. These tools provide data-driven analytics, automated configurations, and seamless integrations with CAD systems to deliver real-time design validation. Companies could also implement tailored training programs and utilize e-learning platforms.  

 According to McKinsey & Company, the time employees spend utilizing advanced technological skills will increase by up to 50% through 2030, and investing in upskilling now ensures manufacturers are ready for this shift. In 2025, upskilling is more than training – it’s about empowering employees to work smarter, not harder. By embracing CPQ software as part of the upskilling strategy, businesses can bridge the knowledge gap, future-proof their operations and thrive in an industry that’s becoming more digital.  

The Role of CPQ Software in Digital Transformation 

CPQ software has set the foundation for the future of digital manufacturing, enabling companies to meet the growing demand for customization, speed, and accuracy. In addition, these tools minimize errors and accelerate the quote-to-cash (QTC) cycle. Their integration with enterprise systems like customer relationships management (CRM) and enterprise resource planning (ERP) allows manufacturing companies to create a unified, data-driven ecosystem that aligns sales and production teams. 

Breaking down the role of CPQ software in the future of digital transformation in manufacturing might look something like this: 

• Streamlining Sales Processes: CPQ software will simplify the complex and time-consuming task of generating accurate quotes for highly configurable products. Ensuring all product configurations meet engineering, pricing, and manufacturing constraints will eliminate the need for manual checks, saving time. 

• Reducing Errors: CPQ software could minimize errors in the field by automating complex processes, promising accurate configurations, and standardizing pricing and quoting procedures.  

• Improving the QTC Cycle: CPQ software may improve the QTC process by reducing approval times with built-in approval workflows to ensure that only quotes requiring special attention are routed for managerial approval, speeding up the process. 

CPQ solutions will be central to the manufacturing industry’s digital transformation future. From improving sales processes and QTC cycles to minimizing errors, the software will be a must-have for companies striving to outshine competitors while satisfying customer needs in 2025 and beyond. 

Transform Your Business with Tacton 

Digital transformation is the future of manufacturing, and CPQ software is an integral part of the change. As manufacturers aim to deliver customized solutions to their customers, advanced CPQ tools like Tacton can empower their sales teams with intelligent automation, seamless integration, and dynamic visualization capabilities.  

Tacton is a recognized leader in Gartner’s Magic Quadrant for CPQ Application Suites, thanks to our innovative approach to simplifying configuration and driving operational excellence. Adopting our cutting-edge solutions can enable you to stay competitive and attain your unique business objectives.  

 Request a demo to see how Tacton CPQ software can benefit your sales teams and prepare your operation for the future of manufacturing. 

 

At Tacton, we believe that selling complex, configurable products isn’t just a process– it’s an opportunity to redefine the buyer experience. For manufacturers navigating today’s dynamic markets, Tacton CPQ brings clarity, precision and automation that is needed to turn complexity into a competitive advantage.  

Our leadership in Configure-Price-Quote (CPQ) solutions has earned widespread recognition this year. Gartner named Tacton a Leader in the Magic Quadrant for CPQ Applications, and IDC MarketScape highlighted us as a Major Player in Configure Price Quote Applications for Commerce. Most recently, MGI Research ranked Tacton as the #1 CPQ Product for 2024 in its highly anticipated 2024 CPQ Top 25 Buyer’s Guide.

Let’s dive into the top 5 reasons Tacton CPQ the trusted choice for our manufacturing customers looking to simply their sale process and elevate the buyer experience:  

 1. Effortless Configuration for Complex Products 

In a world where buyers demand tailored solutions and instant precision, Tacton CPQ brings product configuration to an entirely new level. By embedding deep product intelligence into the sales process, Tacton enables manufacturers to manage millions of product variants effortlessly ensuring every configuration is valid, optimized, and perfectly aligned with customer needs. 

Manufacturers can mitigate the risks of brain drain and talent turnover—an increasing concern in an industry reliant on specialized sales knowledge. By automating complex configurations, even new sales reps can deliver first-time-right solutions with confidence. Tacton ensures that product expertise is embedded in the system, not just in the minds of experienced team members, enabling organizations to onboard new talent faster and maintain quoting precision regardless of changes in the workforce.  

Product variance becomes a strategic strength rather than a bottleneck, eliminating errors and accelerating sales cycles. Instead of struggling with complexity, manufacturers transform it into a clear, competitive advantage that drives growth and customer satisfaction. 

2. Pricing done right, the first time with dynamic pricing 

Manufacturers can’t afford margin leakage or pricing inconsistencies. That’s why Tacton CPQ integrates an intelligent dynamic pricing engine that ensures every quote is accurate, optimized, and immediate—no matter how complex the product or scenario. 

By factoring in material costs, market changes, and advanced pricing models like subscription-based or volume pricing, Tacton CPQ enables manufacturers to protect margins while delivering value to customers. Sales reps can confidently share precise, real-time prices directly within the configurator, earning trust at every stage of the buying journey. With Tacton, pricing becomes a strategic enabler—supporting profitability, adaptability, and speed across channels. 

3. Automated, branded quotes in minutes 

In the fast-moving world of complex manufacturing, slow and error-prone quoting processes are no longer acceptable. Tacton CPQ delivers automated, polished, and professional quotes with a single click, ensuring every detail is accurate and aligned with your latest product data, pricing, and branding. 

These data-driven documents not only speed up the sales process but also build confidence with buyers. Whether it’s a complex technical specification or a high-level summary, sales teams can generate tailored, impactful quotes in minutes—empowering decision-makers and driving deals forward. The result? Faster decisions, superior buyer experience, and a sales team that can focus on selling rather than chasing paperwork. 

4. Immersive 3D visualization brings your products to life 

Buyers today expect more than static documents—they want to see, interact with, and understand their solutions before they commit. Tacton CPQ transforms the buying experience with cutting-edge 3D visualization and augmented reality tools that deliver an engaging perspective on your products. 

With real-time visuals, buyers can explore configurations in stunning detail, gaining a clear understanding of their investment. These immersive tools eliminate ambiguity, reduce costly errors, and accelerate decision-making. More than just a visual aid, Tacton’s interactive tools inspire confidence, enabling sales teams to unlock cross-sell and upsell opportunities and create an experience buyers will remember. 

  5. Deliver a consistent sales experience across all channels  

Consistency is the foundation of a world-class buying experience, and Tacton CPQ ensures every interaction—whether through direct sales, partners, or self-service platforms—is seamless, accurate, and connected. By unifying product, pricing, and order data across channels, Tacton eliminates friction and empowers manufacturers to reach new markets with confidence. 

Partners can configure and sell with the same tools and accuracy as internal sales teams, while self-service options deliver modern convenience without sacrificing order quality. As product updates or pricing changes roll out, they’re instantly reflected everywhere, ensuring manufacturers can respond to opportunities faster than ever before. Tacton doesn’t just enable omnichannel sales—it gives them a competitive advantage. 

 Why Manufacturers Trust Tacton CPQ 

Tacton CPQ isn’t just a tool; it’s a strategic investment in the future of your sales operations. Widely recognized by leading analysts for its innovation and impact in the CPQ space, Tacton empowers manufacturers to simplify complexity, enhance efficiency and transform buyer engagement.  

From accelerating configuration and optimizing pricing to delivering immersive, interactive buying experiences, Tacton ensures precision, consistency, and confidence at every step of the buyer journey. These recognitions underscore our ability to help manufacturers not only meet the demands of today but prepare for the opportunities of tomorrow with innovation and efficiency. 

Ready to elevate your sales strategy and redefine your buyer experience? 

Schedule a Demo Today and see how Tacton CPQ can transform the way you sell, scale, and succeed. 

Unlock the full potential of service and product sales with Tacton CPQ’s Service Sales Solution for Manufacturers 

The manufacturing landscape is evolving rapidly, and customers now expect more than just a product—they seek comprehensive solutions that provide ongoing value throughout the lifecycle of their equipment. Manufacturers must rethink how to approach sales by uniting products and services into a seamless, value-driven experience. 

Tacton’s Service Sales Solution is designed to meet this demand, empowering manufacturers to combine product and service sales within a single, integrated system. This streamlines operations, boosts revenue opportunities, and fosters long-term customer loyalty. 

Maximizing Aftermarket Revenue Opportunities 

Aftermarket services represent a significant growth opportunity for manufacturers. Studies show that for 20% of B2B manufacturing companies, 30-49% of total revenue comes from aftermarket sales. Yet, many manufacturers struggle to fully capitalize on this potential due to fragmented systems and reactive service offerings. 

Tacton’s Service Sales Solution bridges this gap by monetizing every stage of the customer lifecycle. By embedding service sales within the CPQ process, businesses can simplify quoting, cut costs, and offer tailored services that enhance equipment performance and drive customer satisfaction. 

Empowering Unified Sales Strategies 

Traditionally, manufacturers have treated products and services as separate entities, often managing them through different tools and workflows. This siloed approach leads to inefficiencies, slower response times, and missed opportunities to deliver maximum value to customers. 

With Tacton’s Service Sales Solution, manufacturers can adopt a solution-selling approach, bundling products and services into tailored packages. Whether it’s preventative maintenance, spare parts, or training programs, these solutions meet the specific needs of each customer while enhancing the total value of the deal. 

Deliver value across the lifecycle  

By combining product and service sales, you can:   

• Increase Revenue: Leverage combined product and service offerings to enhance customer relationships and unlock new revenue streams. 

• Reduce Costs: Empower service sales reps to configure customized packages independently, easing the burden on engineering and IT teams. 

• Enhance Customer Loyalty: Offer personalized service packages to build trust and foster long-term relationships, giving your brand a competitive advantage in customer retention. 

Service Sales Features That Make the Difference 

The Service Sales Solution is designed to simplify and streamline the way manufacturers offer aftermarket services. Here’s how it works: 

• Seamless Integration with Installed Base: Gain full visibility into customer assets, enabling tailored service offers and better management of installed equipment. 

• Flexible Service Offerings: Configure custom packages that meet diverse customer needs, including preventative maintenance, consumables, spare parts, and training. 

• Advanced Service Scheduling: Leverage operational data and forecasting tools to determine the right service levels for each customer, ensuring proactive support. 

• Clear Service Roles and Tasks: Assign the right resources to the right jobs with clearly defined service tasks and role allocations. 

• Accurate Cost Calculation and Quoting: Automatically calculate costs and margins to generate precise quotes, improving profitability and reducing errors.

Creating A Competitive Edge for Manufacturers 

In a market driven by price competition, simply offering a quality product isn’t enough. Manufacturers need ways to stand out by delivering value that low-cost competitors cannot replicate. Tacton’s Service Sales Solution provides a powerful way to differentiate by combining efficiency, expertise and customer-centric offerings in one seamless system.  

By uniting product and service sales, manufacturers can shift their focus from transactional interactions to long-term partnerships. The ability to offer bundled solutions—tailored to meet specific customer needs—demonstrates a level of understanding and commitment that price-focused competitors often lack. Customers value the convenience of working with a single trusted partner who can deliver not just products but also the services that keep their operations running smoothly. 

Additionally, the streamlined approach reduces operational complexity, allowing manufacturers to focus on providing proactive support and personalized care. This positions manufacturers as indispensable allies in their customers’ success, strengthening relationships and ensuring retention over time. With Tacton’s Service Sales Solution, manufacturers aren’t just competing—they’re redefining what it means to provide exceptional value in a crowded market. 

Ready to Transform Your Service Sales? 

The future of manufacturing isn’t just about selling products—it’s about delivering solutions. With Tacton’s Service Sales Solution, you can simplify your operations, maximize the value of every deal, and create stronger, longer-lasting relationships with your customers. 

Watch our launch webinar to learn more or schedule a demo.