As we end 2024, aftermarket service sales have become a critical focus for manufacturers seeking to enhance revenue, build meaningful customer relationships and stay competitive. Economic pressures, evolving customer demands, and technological advancements are reshaping the role of aftermarket services. Here are the top five reasons why aftermarket sales matter more than ever for manufacturers today.  

1. Economic Shifts Favoring Maintenance Over New Purchases

With high inflation and rising interest rates, many companies are delaying major capital investments, opting instead to extend the life of their existing equipment. Manufacturers are meeting this need by focusing on aftermarket services like maintenance and upgrades, allowing customers to avoid the financial strain of new purchases. By pivoting to aftermarket services, manufacturers can adapt to a market that prioritizes maintenance over new purchases, positioning themselves as essential partners in helping customers maximize the value of their existing equipment.

2. Higher Margins for Long-Term Profitability

Aftermarket services offer financial benefits that often surpass those of new product sales. According to Deloitte, aftermarket services contribute an average of 25-30% of manufacturers’ revenue but represent over 50% of profits due to significantly higher margins.  Additionally, McKinsey research shows that companies with a strong aftermarket focus can see profit margins up to ten times higher than those relying on new equipment sales alone. This margin advantage makes aftermarket sales a crucial part of a sustainable, profitable business model.

3. Growth Potential in a Booming Market

The aftermarket sector is experiencing rapid growth.  This booming market presents manufacturers with fresh opportunities to expand their services portfolio. With higher margins and customer demand increasing, aftermarket services are an attractive and reliable revenue stream across various manufacturing sectors. As business face increased competition, those who leverage aftermarket services will find themselves in new opportunities to capitalize on the expanding market. 

4. Strengthening Customer Relationships through Regular Interactions

Aftermarket services provide manufacturers with ongoing touchpoints with their customers, enabling them to build and maintain strong relationships. Ongoing service interactions allow manufacturers to understand customers’ evolving needs, offer personalized recommendations, and increase long-term loyalty. A report from the Service Council indicates that companies focusing on service achieve 25-30% higher customer retention rates, with repeat customers contributing significantly to long-term revenue. Through tailored services, manufacturers can turn one-time buyers into long-term partners.

5. Aligning with Sustainability and Market Trends

As sustainability becomes a priority, aftermarket services align with market demands for eco-friendly practices. By maintaining and refurbishing existing equipment, manufacturers contribute to reduced waste and promote sustainable practices—a factor that appeals to environmentally conscious consumers. Additionally, with the rise of electric and hybrid vehicles, specialized maintenance and support services are becoming essential, presenting new growth opportunities for manufacturers.  

Tacton: Empower Manufacturers to Succeed with Aftermarket Sales 

Today’s manufacturers face mounting pressure to create lasting value beyond the initial sale. With Tacton’s upcoming Service Sales solution, manufacturers will soon be able to offer both products and services within a single, unified Configure, Price, Quote platform. By integrating service options like maintenance, spare parts, consumables, and training, Tacton empowers sales teams to unlock new aftermarket revenue streams, increase customer retention, and improve profitability. Through seamless quoting of both products and services in one system, manufacturers can enhance revenue, protect service margins, and build deeper customer relationships. Stay tuned for how Tacton will transform aftermarket offerings into powerful, long-term revenue streams for sustained success. 

 

In the realm of complex manufacturing, various terms and concepts shape the sales landscape and play a pivotal role in helping business leaders understand how to drive efficiency, enhance customer satisfaction, and ignite the sales process. Among those, Configure Price Quote (CPQ) software stands out as one of the most vital tools for streamlining sales processes and elevating buyer experience. CPQ software automates the configuration, pricing, and quoting process, enabling sales organizations to provide accurate quotes tailored to customer needs swiftly. Below we share several terms that define the next phase of efficiency and innovation within manufacturing sales. But first, a look at some of the enabling technology that improves the production process, sales process, and the buyer experience for new and existing customers. 

Understanding the Role of CPQ Software for Complex Manufacturing Sales 

Complex manufacturing involves the creation of highly customized products that involve multiple parts, processes, and raw materials. CPQ is one of the most crucial technologies for automating the configuration, pricing, and quoting process, enabling the sales team to streamline their processes and improve buyer satisfaction. In industries such as manufacturing, where product part combinations can number in the billions, CPQ is essential for streamlining customer relationship management, sales processes, and improving buyer satisfaction. 

CPQ software is particularly useful for complex manufacturing sales, where products are highly customized and have multiple components. By automating the sales process, CPQ software can help sales teams quickly and accurately configure products, calculate prices, and generate quotes. This automation is crucial in complex discrete manufacturing, where the sheer number of product combinations can be overwhelming. CPQ software simplifies this complexity, ensuring that sales teams can provide precise and timely quotes, enhancing the overall customer experience and increasing sales. 

Other Terms Customer Success and Sales Team Should Know in Complex Manufacturing 

Supply Chain Management: 

Focuses on the flow of goods and services, including all processes that transform raw materials into final products. Manufacturing operations management (MOM) is the comprehensive process of supervising all tasks involved in manufacturing. In complex manufacturing, effective supply chain management is vital to ensure all components arrive on time, minimizing production delays.  

Smart Manufacturing: 

Integrates advanced technologies – such as loT, AI and automation – to create more efficient and responsive manufacturing processes. A buyer-centric smart factory emphasizes customization and the ability to respond quickly to unique customer needs. By adopting smart manufacturing techniques, companies can improve product quality, reduce costs and adapt quickly to customer demands.  

Quality Control and Assurance: 

Ensures products meet required specifications and standards before they reach the customer. The production process is crucial in ensuring quality control and efficiency to maintain customer satisfaction and brand reputation. 

Sustainability in Manufacturing: 

Focuses on eco-friendly practices and reducing the environmental impact of manufacturing processes. Adopting sustainable practices can help companies appeal to environmentally conscious buyers while also contributing to long-term cost savings and regulatory compliance.  

Sales Automation: 

Tools and techniques to enhance the sales process, including lead management and follow-ups. Sales automation allows teams to focus on high-value interactions instead of tedious tasks, which accelerates the sales process and overall efficiency.  

Product Configuration: 

The process of defining and customizing products based on customer specifications. In complex manufacturing, CPQ software enables customers and sales teams to design highly tailored solutions, efficiently.  

Pricing Strategies: 

Techniques for setting prices that reflect market conditions and customer demand. When products are customized, automating the pricing process and ensuring each quote accurate reflects the cost of selections, applicable discounts and any customer-specific pricing terms not only speeds up the quoting process, but also maintains profitability.  

Quoting Process: 

The steps involved in generating accurate quotes for customers. An efficient quoting process, especially through CPQ software, enables sales teams to quickly provide pricing that reflects product configurations and customer needs. 

Integration with CRM: 

The ability of CPQ software to integrate with Customer Relationship Management systems for improved data flow. 

Guided Selling: 

A feature in CPQ systems that helps a sales team recommend products based on customer needs to enhance the customer experience 

Analytics and Reporting: 

Tools for tracking sales cycle performance and generating reports on quoting activities. 

Customization Options: 

Features that allow customers to tailor products to their specific requirements. 

Contract Management: 

The process of managing contracts associated with quotes and sales cycle. Efficient contract management ensures transparency and helps avoid errors or delays in finalizing deals 

Sales Call: 

The involvement of Subject Matter Experts (SMEs) in sales calls can enhance the value delivered to customers by providing critical technical insights and problem-solving capabilities. 

Contract Acronyms: 

TCV = Total Contract Value 

ACV = Annual Contract value 

SV = Subscription Value 

PV = Period Value 

OTC = One-Time Charge 

MRR = Monthly Recurring Revenue 

ARR = Annual Recurring Revenue 

TCO = Total Cost of Ownership 

Total Contract Value (TCV): Total Contract Value or TCV is the total value of all subscriptions over the length of a contract. 

Annual Contract Value (ACV): Annual Contract Value or ACV is the value per year within a contract. For a 1-year contract, the ACV is the same as the TCV. The TCV is the sum of all ACVs. The ACV is not the TCV ”Number of contract years” since all One-Time Charges (OTC) will be part of the Year 1 ACV and that over the contract length, different periods can be present. 

Subscription Value (SV): The total value of one subscription, including all Recurring Charges and One-Time Charges. 

Period Value (PV): The total value of recurring prices, including discounts for a given period. 

One Time Charge (OTC): One-Time Charges are charges that will be billed on one single occasion at the start of a subscription. 

Monthly Recurring Revenue (MRR): Monthly recurring revenue (MRR) is the revenue that this contract will have on a monthly recurring basis. 

Annual Recurring Revenue (ARR): Annual recurring revenue (ARR) is the revenue that this contract will have on an annual recurring basis. 

Equipment as a Service (EaaS): Equipment as a service (EaaS) is a model where the producer of a product rents out equipment to end-users while collecting payments on a monthly or yearly basis for the usage of the product. 

Meet Customer Needs, Build Accurate Quotes, And Improve Sales Processes 

Understanding key terms and concepts is crucial for driving efficiency, enhancing customer satisfaction, and boosting sales. CPQ technology stands out as a vital tool for automating processes and customizing quotes swiftly, especially in industries where products are highly customized. Additional areas such as Supply Chain Management, Smart Manufacturing, and Quality Control are essential in ensuring smooth operations and maintaining product quality. By ensuring your entire team understands these key terms and embraces the technologies that improve the sales process, businesses can stay ahead of the curve, deliver exceptional customer experiences, and increase sales in the competitive landscape of complex manufacturing sales. 

Selling complex products has always been a challenge for manufacturers, and now professionals in this field are dealing with a new reality: buyers and the buying process have changed forever. 

According to Gartner’s Future of Sales report, nearly half of buyers prefer minimal engagement with sales teams, with over 80% of the buying process happening before they even engage with a vendor. This shift makes it critical for manufacturers to adapt to this new reality. Here are five strategies to maximize your digital transformation efforts and remain competitive in this quickly evolving market. 

Start by Asking the Right Questions 

Your transformation journey begins by asking critical questions needed to define your goals and initiate the process. Consider: How can our organization accelerate our digital transformation efforts to enhance efficiency, productivity, and supply chain visibility? What strategies can we implement to advance from planning digital initiatives to executing them effectively? And how can we leverage technology to ensure we don’t miss out on sales opportunities and fall behind competitors by delaying our digital transformation journey? 

Conduct a Thorough Assessment 

Successful sales organizations fully understand their internal landscape and broader market dynamics. Assess your current situation, to understand where your organization stands. It’s also vital to evaluate your technology and talent to evaluate the organization’s capabilities and identify gaps or overlaps. An honest assessment lays the groundwork for an effective digital transformation. 

Define Clear Objectives and Differentiators 

Before you get started, set your key operational objectives and identify how your digital transformation journey will support the sales strategy. This involves redefining how your organization differentiates itself from competitors in the market. For example, today’s businesses are shifting from selling standalone products to comprehensive solutions, such as multiple products or products bundled with managed services, to offer more value and meet evolving customer expectations. 

Choose the Right Digital Solutions

Selecting technologies that complement your current operations is vital. Configure Price Quote (CPQ) should be central to defining your strategy. Implementing a centralized system that houses important information about your products and your buyers empowers your sales team and gives them a leg up on the competition. Arming your sales engineers with this wealth of knowledge transforms salespeople into solution consultants, ensuring expertise is available to potential and existing customers anytime, across every channel. 

Accelerate Your Go-to-Market Agility

Today’s sales landscape is all about speed: how fast can your new products and solutions be brought to the market, and how quickly can they be sold. Organizations need to make informed decisions more frequently and move away from quarterly or monthly planning cycles towards weekly or even daily activities informed by real-time data. This increased agility enables quicker responses to changing market demands and customer expectations. 

 

While digital transformation has been top-of-mind for years, leading organizations are leveraging technology to create differentiated buyer engagement. By using advanced technology to provide personalized experiences, you can empower buyers to make informed decisions and streamline their path to purchase. 

At Tacton, we’re dedicated to helping manufacturers completely transform how complex products are developed, configured and sold.  Discover how Tacton CPQ can redefine your buyer engagement and speed up your sales process today.  

The COVID-19 pandemic had a far-reaching impact on business, including one that B2B sales professionals are still coming to grips with: a significantly altered buyer and buying process.

Moreover, the emergence of a digital-native workforce, which will constitute the majority by 2025, has greatly influenced how purchasing decisions are being made. Most buyers now independently complete the entire industrial buying process without engaging directly with vendors, and this trend has intensified considerably since the outbreak.

Industrial leaders must recognize and adapt to this evolving buyer behavior, with a focus on building trust and showing expertise in order to better engage with this new wave of buyers and effectively support their purchasing journey.

Jeff Summers, Tacton’s Chief Customer Officer, has identified five pivotal trends that are shaping the new era of B2B sales engineering. His article in SalesTechStar, “The New Era of the B2B Sales Engineer: Five Things To Know”, delves deeper into the trends and offers valuable insights on how firms and sales engineers can leverage these trends to their advantage, honing their competitive edge.

In our last blog we took a deep dive into the fundamental ways in which buyers have changed in industrial manufacturing. Today’s buyers are more informed, tech-savvy, demanding and want the same engaging experiences they get from B2C companies.  

With so much information in their pockets, buyers conduct extensive research before even considering purchasing, seeking our reviews, product comparisons and expert opinions. Having these critical insights and information has shifted the power balance from sellers to buyer, making it critical for manufacturers to adapt and engage their customers in new ways.  

Just like the buyers, the buying process has evolved greatly. The journey used to be much more linear, customers would talk with sales reps, understand the product and receive specs for the product they would purchase. Now the journey is characterized by multiple touchpoints across various channels.  

With these various channels, buyers expect a seamless experience, personalized interactions and fast response times. These high demands require manufacturers to reimagine their go-to-market strategies.  

Tacton CPQ is enabling manufacturers to reinvent their strategies by creating new and exciting ways for buyers to see their unique products. Let’s investigate the evolution of the buying process, the implications for manufacturers and how CPQ is helping leading manufacturers keep up with the new buyer.  

The evolution of the buying process  

Digital first approach and a hybrid buying strategy

The days of the buying process being over the phone, or in-person have shifted, today the whole process starts online. Modern buyers conduct extensive research before ever contacting a supplier. They utilize company websites, social media, and industry forums to gather information, compare products, and read reviews. This digital-first approach means manufacturers must put more effort into creating an exciting online presence and provide quality information that is easily accessible so buyers can make informed decisions.  

Extended decision-making process 

The decision-making process in manufacturing sales isn’t as easy as it once was. It’s more uncommon for one person to make a final decision, multiple stakeholders from various departments are involved in the buying process. Gartner even notes that a new decision-maker enters the buying journey in the last 5% to 10% of the buying experience. Each stakeholder brings their own criteria and concerns when buying products. This extended decision-making process requires sellers to engage with multiple decision-makers, address a diverse range of needs, and provide more detailed and tailored information. 

Real-time information is critical 

Without up-to-date information it makes it nearly impossible for customers to make a final decision on products. If manufacturers can’t provide accurate pricing and availability prospects will quickly move onto companies who can. They simply do not want to wait for days for a quote or product details. Real-time information is not just a convenience; it’s a necessity. 

What are some key features manufacturers can use to address customer needs?  

1. Self-Service options: Buyers increasingly prefer self-service options, allowing them to independently access information, configure products, and make purchases. Self-service portals empower buyers to take control of their purchasing process, offering convenience and speed without the need for constant interaction with sales representatives. Creating better buying engagement starts with being compelling and consultative. Manufacturers who can provide this type of information and consult online will win more deals. 
2. Virtual and augmented reality: The use of VR and AR is revolutionizing product demonstrations and virtual tours. Buyers can now experience products in a more immersive and interactive way, gaining a better understanding of the product’s features and benefits without being physically present. 
3. Analytics: Advanced analytics are transforming the way manufacturers understand and engage with their customers. By leveraging data analytics, manufacturers can gain insights into buyer behavior, preferences, and trends. This allows for more targeted marketing, improved sales strategies, and enhanced customer experiences. 

Strategies for manufacturers 

Digital engagement and buyer-friendly experiences:

Manufacturers who prioritize having a robust and easy to use digital presence will help attract and retain modern buyers and see improvements in sales.  

Real-time data integration:

Integrating real-time data into your systems is crucial to provide up-to-date information to buyers. This ensures that potential customers have access to the latest product details, pricing, and availability, which can significantly influence their purchasing decisions. 

Adoption of innovative technologies:

Embracing technologies like VR, AR, AI, CPQ, self-service options, and analytics can dramatically enhance the buyer experience. These tools not only provide a more engaging and informative experience but also help streamline the sales process and meet the evolving demands of buyers. 

How is CPQ enabling these strategies?  

Manufacturers who have CPQ at the center of their selling process have found it easier than ever to address a diverse array of challenges and opportunities that are being driven by their customers. Here are just a few ways CPQ is helping modern sales strategies succeed: 

Enhancing the digital first hybrid approach 

With CPQ manufacturers are always able to provide detailed, accurate product information online. This ensures that every product is valid, buildable and deliverable. CPQ also enables buyers to explore different configurations and pricing scenarios, improving their understanding and giving them confidence to make a final purchase.  

Supporting the decision-making process 

Giving buyers the full picture of a product, complete with comprehensive and precise data, CPQ can offer detailed proposals that can address the concerns of any decision maker in the process.  

Providing real-time information:  

CPQ systems deliver real-time updates on product availability, pricing, and configurations. This immediacy meets the expectations of modern buyers for instant information, reducing the wait time and increasing buyer satisfaction. 

Using visualization and augmented reality for lead generation 

It is also possible to use product visualization in your lead generation activities by offering visual configuration software on your website for anonymous users. By offering your full portfolio online you can influence your prospect’s buying criteria before they reach out to your sales reps. 

Empowering Self-Service and buyer engagement:  

CPQ can support self-service portals by offering tools that allow buyers to independently configure products, obtain quotes, and make purchases. This empowerment aligns with the preference of modern buyers for control and convenience. 

Driving insights through analytics:  

CPQ collects and analyzes vast amounts of data, providing manufacturers with actionable insights into buyer behavior, preferences, and trends. These insights drive more targeted and effective sales and marketing strategies. 

The generational shift in manufacturing is here to stay

Buyers will only become more focused on purchasing products quickly, and online. Manufacturers who take advantage of these new buyers will find themselves in a position to grow their business in the years to come.  

Tacton CPQ was built specifically to help the sales needs of leading global manufacturers. Companies such as Siemens and Vantage are using Tacton to revolutionize their sales process. Find out more in our latest eBook “Keeping Up with The Modern Manufacturing Buyer”.  

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With manufacturing feeling the fundamental shifts in buyer engagement, sales models, and even sustainability, they are also facing new challenges when it comes to employee retention and the challenges it causes. As of June 2024, the employee turnover rate in the manufacturing industry was 37%.  

With employees leaving at such a high rate, manufacturers face the common challenge of brain drain. As many employees retire, or find new jobs, much of their product, sales and engineering knowledge is lost. This causes companies to struggle to properly create products without errors and meet the needs of new and demanding customers.  

This phenomenon can significantly impact an organization’s efficiency, innovation, and competitive edge. However, with the right tools and strategies, companies can preserve valuable expertise and mitigate the effects of brain drain. One solution, Tacton Configure, Price, Quote (CPQ) is helping leading manufacturers combat brain drain and achieve new levels of profitability and efficiency. Let’s look at the current situation and how CPQ can help.  

What is brain drain?

Brain drain is the gradual loss of intellectual capital, skills and industry and product knowledge when employees leave an organization. This challenge can be particularly difficult in manufacturing where intricate processes, complex product configurations and industry specific knowledge are critical for selling. These are some common challenges faced after key employees leave: 

Loss of efficiency: Remaining employees may struggle to match the productivity level of their former colleagues, leading to delays and increased costs. New employees will find challenges about learning specific product information that would help them onboard and sell faster.  

Decreased innovation: Without experienced team members and their product knowledge it can become more difficult to drive innovation.  

Knowledge gaps: Critical knowledge about customer preferences, product configurations, and unique solutions can be lost, affecting customer satisfaction and sales. 

How does CPQ mitigate brain drain?  

Your sales team spends two-thirds of its time away from customers. By implementing CPQ, you can automate most tasks, including quoting, filling out spreadsheets, and attending to administrative tasks. 

When you free up your agents, they become more effective because they have more time to spend building impactful relationships with current customers, seeking new clients, and pursuing professional development. Here are a few more ways Tacton can help: 

Knowledge capture and standardization 

With the help of CPQ, manufacturers can document and standardize their product configurations, pricing rules and quoting processes. By creating a centralized source of truth with CPQ it’s easier for companies to withstand the effects of the loss of critical information when employees leave.  

This also makes the onboarding process for new hires that much easier. They will be able to quote with 100% confidence as CPQ ensures that no invalid product configurations make it into production.  

Guided selling and configuration 

Navigating complex product configurations has been a challenge for sale reps, that isn’t a problem anymore with the help of Guided Selling. Guided Selling provides step-by-step guidance ensuring that the newest sales rep can accurately configure products according to customer requirements. This helps insulate manufacturers from over reliance on a few key experts across the organization.  

Seamless end-to-end connections  

Using CPQ as a centralized hub connected to other business critical systems such as ERP, CRM, PLM and more, it’s easier than ever to have up-to-date information for your team. Creating this automated process minimizes the need for manual and admin tasks and reduces the error-prone quoting process by delivering correct and detailed product information. It also frees up experienced employees to focus on more strategic tasks, rather than routine administrative work. 

Centralized knowledge repository 

With the help of CPQ manufacturers can create a central hub for product and sales knowledge. This approach ensures that all employees have access to the latest information. It also facilitates knowledge sharing and collaboration, fostering a culture of learning and improvement.  

Analytics and insights  

Tacton CPQ provides valuable analytics and insights into sales and product performance. By analyzing this data, organizations can identify trends, optimize their product offerings, and make informed strategic decisions. This data-driven approach helps maintain the organization’s competitive edge; even as experienced employees leave. 

HMF Cranes combats brain drain with CPQ  

One of our customers, HMF Cranes, one of the world’s leading manufacturers of truck-mounted cranes strives to be the most innovative business in manufacturing. In 2022 they implemented Tacton CPQ to help their quoting and ordering process. Another added benefit they saw was how quickly they could onboard new hires.  

Onboarding new employees also became faster with Tacton. Without CPQ it was a time-consuming process to teach new employees the intricacies of the product, as this would be an error-prone learning process. Now with Tacton it’s easier to train new employees with the new system, and it gives them responsibility to configure a crane with the knowledge that it’ll be correct. 

With the changing economy, pricing is also an important factor for HMF in selling their cranes. With Tacton, keeping up to date with the latest prices is easy and always accurate. 

As Alicia Vivier Brockhoff notes:

“It’s easier to be a customer and an HMF distributor. It’s easier for us to implement new products and train new salespeople. There are a lot of great benefits”

HMF is just one example of companies Tacton is helping create a centralized tool for all things sales, engineering and customer experience.  

Are you ready to take the next step?  

Brain drain is a significant challenge for many manufacturing organizations, but it can be effectively mitigated with the right tools and strategies. Tacton CPQ offers a comprehensive solution for preserving and leveraging critical knowledge, ensuring that expertise is retained and accessible across the organization.  

By capturing, standardizing, and automating complex product knowledge, Tacton CPQ empowers companies to maintain efficiency, drive innovation, and continue to deliver exceptional value to their customers. 

Are you ready to future-proof your organization against brain drain? Explore how Tacton CPQ can help you preserve expertise and maintain your competitive edge in the ever-evolving manufacturing landscape. 

Chat with our experts 

The past five years have demonstrated just how quickly things can change for an entire industry. Since the beginning of the COVID-19 pandemic, manufacturers typical B2B sales journey has been fundamentally altered. This shift is driven by a younger and digital native buyer. The traditional, relationship-driven sales approach has evolved as buyers demand digital-interactions, speed, and transparency.  

Today’s buyers are more informed about the products and companies they want to purchase from. Over 80% of the buying process now occurs without engaging a vendor (Gartner), it was 67% just 3 years ago. These new customers also want the same exciting and personalized experiences they encounter in the B2C world. 

As manufacturers navigate this shift, understanding the new expectations and behaviors of these modern buyers is crucial. Manufacturers are increasingly turning to Configure, Price, Quote (CPQ) solutions to adjust to the needs of the newest buyer by streamlining the sales process, enhancing customization, delivering fast and accurate quotes and providing an exciting way to buy online. Let’s look deeper into the new buyer behavior since the pandemic and how leading manufacturers can leverage these insights with the help of CPQ to enable a new level of buyer engagement.  

This opportunity is enormous for manufacturers who act quickly to meet and engage with these customers anywhere in their buying journey.  

What does the new manufacturing buyer look like?

Today’s buyers are comfortable with digital tools an expect seamless online interactions 

Since the pandemic, manufacturing buyers have increased their use and reliance on digital tools. The shift to virtual interactions has made the job of top sales rep much more difficult for your business. That’s why nearly half of buyers would prefer to never interact with a salesperson.  

Today’s buyers are more than happy to buy their products fully online, and they expect manufacturers to provide seamless and efficient online interaction to complete these purchases.  

Manufacturers must ensure their digital channels are intuitive, responsive, and integrated, providing a user experience that meets the high standards set by consumer technologies. Implementing Tacton CPQ software can streamline the online buying process, offering real-time customization and accurate pricing that enhances the overall customer experience. Check out our latest ebook for an in depth dive into the new customer profile! 

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Demand for personalization 

Modern B2B buyers expect the same level of personalization in their professional purchases as they do in their personal lives. They seek solutions that are specifically tailored to their unique needs and preferences, rather than generic offerings. This demand for personalization extends beyond products to include personalized content, recommendations, and interactions.  

Manufacturers can meet this expectation by leveraging Tacton CPQ that allows for detailed customization of products and services. These tools can provide tailored quotes and configurations that address individual customer requirements, quickly enhancing customer satisfaction and loyalty. 

Informed decision makers 

With so much information at the fingertips of every buyer it’s easier for buyers to make fully informed decisions before they purchase or reach out to a sales rep. Access to detailed product information, customer reviews, customer stories and even competitive analysis means that buyers enter the sales conversation with a higher level of knowledge and expectations from a manufacturer.  

Customers demand transparency, accuracy and value in every interaction. For manufacturers this means the sales approach must be consultative, providing valuable insights and solutions rather than just products and product information. Utilizing Tacton CPQ software can help sales teams quickly generate precise quotes and configurations, allowing them to respond promptly to the informed queries and complex requirements of today’s savvy buyers. This not only improves the efficiency of the sales process but also builds trust and credibility with customers. 

Key Factors Driving Change for manufacturers

Digital Native Demographics 

A large factor driving the change in buyer behavior is the growing number of digital native demographics with buying power in the manufacturing industry. A digital native is a person who grew up with the presence of digital technology or in the information age.  As younger professionals move into decision-making roles, they will take their internet first mentality to their buying decisions.  

Sustainability and regulatory compliance standards

Sustainability has become a critical consideration for many buyers. With impending legislation and regulations there is a growing emphasis on purchasing products that are both high-quality and produced with the environment and social responsibility in mind. Buyers are scrutinizing manufacturers’ practices and choosing partners who align with their own values of sustainability and ethics. They demand transparency in how products are made, and the impact their product will have after it’s been purchased. Manufacturers can use Tacton’s Environmental Footprint Configuration to quickly calculate the impact their products will have and share that quickly with customers. By integrating sustainability into their sales process, manufacturers can appeal to this growing buyer priority and build stronger, more loyal customer relationships. 

 

Implications for manufacturers 

It’s time to invest in a seamless online buying experience 

As buyers become increasingly digital-savvy, manufacturers must invest in enhancing their digital engagement. This involves creating a seamless, integrated online buying experience that meets the expectations of today’s buyers. Tacton CPQ can play a crucial role in this transformation, offering tools that streamline the configuration, pricing, and quoting processes, and ensuring that digital interactions are smooth and efficient. 

Leverage customer data for personalized solutions 

To meet the demand for personalization, manufacturers need to collect and leverage customer data effectively. By understanding individual customer preferences and needs, manufacturers can offer tailored solutions that enhance the buying experience. Tacton CPQ facilitates this by capturing detailed customer data during the configuration and quoting process, enabling manufacturers to provide highly personalized products and services. 

Transparency in sustainable practices to meet buyer and regulator expectations 

Transparency and sustainability are becoming non-negotiable for modern buyers. Manufacturers must be transparent about their supply chains and demonstrate a commitment to sustainable practices. Tacton CPQ can help manufacturers communicate their sustainability initiatives and product features clearly, providing the transparency that buyers seek. By doing so, manufacturers can build trust and meet the evolving expectations of their customers. 

In closing 

The landscape of industrial manufacturing sales has been irrevocably transformed by the COVID-19 pandemic, ushering in a new generation of buyers who are digitally savvy, demand personalized experiences, and are well-informed. 

Leveraging Tacton CPQ software is a key strategy in this adaptation, enabling manufacturers to meet the heightened expectations of modern buyers with seamless digital interactions, tailored solutions, and transparent practices. By embracing these tools and focusing on enhancing digital engagement, personalizing customer experiences, and committing to sustainability, manufacturers can successfully navigate the changing market dynamics and build stronger, more loyal customer relationships. 

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Why is AI urgent in the B2B manufacturing sales process?

As we stand on the brink of a new era in manufacturing, the integration of Artificial Intelligence (AI) into the sales process presents an unprecedented opportunity for innovation and growth. With 75% of advanced manufacturing companies prioritizing AI technologies, the industry is poised for a significant leap forward. AI’s role in enhancing productivity across the value chain—from procurement and maintenance to logistics—is becoming increasingly evident. 

Both B2B buyers and sellers are becoming digital natives. Buyers expect the buying process to be instant and reliable, pushing manufacturers to adopt digital sales automation technologies that can make the buying journey smooth, fast, and flawless – for both parties. Smart configuration–pricing–quoting technologies can bridge the gap between buyers’ digital purchasing expectations and the sales methods used by traditional manufacturing companies. Generative AI has the power to boost this transition.  

We also see how product differentiation and value-based selling become more critical to winning deals. Buyers expect manufacturers to offer products that are unique to their use case and to present the business value created – already early in the buying journey. In a world like this, the day-to-day sales tasks of requirements collection, solution definition, quote generation and order taking need to be faster and more automated so that the sales rep can focus the sales discussion on value creation rather than shuffling emails about technical features. Tacton CPQ’s award-winning sales automation solution already helps B2B manufacturers in this vein, but generative AI opens completely new possibilities to further reinforce this.  

Boosting Tacton CPQ with Generative AI – our vision 

Our journey towards incorporating AI into Tacton’s CPQ solutions is driven by a desire to empower manufacturers with selling and buying tools that are not just about automation but smart, strategic decision-making.  

Tacton’s long-term approach to AI is grounded in the following principles: 

• Careful evaluation of use cases, separating AI hype from business value. Focus on areas where AI can have the most impact, avoiding the risk of meaningless or even inaccurate responses.
• Co-innovation with customers. As a part of our continuous and ongoing discussions with our esteemed customers, AI use cases will be presented, discussed, and developed based on their business needs. This will also ensure that we separate hype from business value.
• Evolving portfolio. As we will see, AI can be used in multiple parts of the sales and product introduction process. Tacton will gradually release capabilities, listening and learning from those while moving to the next feature.
• Safe, secure, and compliant – for business and user. Training AI models can be performed on different types of data sets, e.g. public data (e.g. Tacton Help Center content) or customer-specific data and logic (residing in the specific CPQ tenants used by one Tacton customer). Tacton will always respect the integrity of our customer’s data and we need to be very clear to everyone involved how AI will be trained.  
• Future proof – model agnostic, pluggable architecture. During its 26+ years of existence, Tacton has taken great pride in being integration-agonistic to other enterprise systems such as ERP, CRM, CAD, and PLM. This principle will apply also to AI platforms. Whatever AI integrations we do, needs to be flexible and expandable to accommodate the shifting enterprise software landscape of our clients.

To continue being the leader in CPQ, Tacton is investing in developing its SaaS CPQ to incorporate Gen AI and Machine Learning technologies in the following two areas:

Make selling and buying easier and faster

• Increase speed and accuracy in sales. Sales reps and buyers can use natural language configuration or an RFQ document for fast and valid product selection and accelerate sales quote production. Help your sales reps quote on customer needs accurately (see mockup image).
• Price Optimization. Based on win-loss analysis of past similar deals, guide the sales rep in the best price points to maximize both deal profitability and win rate. 

Decrease maintenance costs for CPQ system ownership

• Help Center chatbot. Avoid having to search for support articles on how to work with Tacton administration. Use a conversational bot to refine questions and answers more effectively, reducing the time to value for your CPQ administrators. 
• Admin Assistants. Based on the AI model of Tacton CPQ’s help center and customer-specific data in the CPQ environment, Administrators can get snippets of code, formulas, and expressions to extend the capabilities of the customer’s implementation of Tacton CPQ. This can also include best practices in product and pricing modeling.
• Auto Translations. Automatic translation of UI text, product descriptions, and quotes, avoiding misunderstandings and errors.
• Model Optimization. Ask and receive model optimization recommendations in natural language immediately to ensure higher quality and performance. 

Looking Ahead: A Strategic Partnership for Innovation

For executives contemplating the future of their sales processes, Tacton’s forward-looking approach offers a beacon of innovation and growth. By aligning with Tacton, companies can: 

• Prepare for the integration of AI-driven efficiencies into their sales process.
• Anticipate a future where sales cycles are accelerated, and productivity is maximized.
• Look forward to enhanced customization and customer engagement through intelligent analysis & recommendations.

Be a part of the future today. Reach out to Tacton to learn more about our vision for AI-driven manufacturing sales and how we can help prepare your business for the innovations ahead. 

Tacton Forward-Looking statement 

• Some services or features referenced in connection with this presentation may not have been released and are not currently available. 
• The final product may differ from what is described here 
• The target release date is not set and may change due to other priorities. The delivery of the final service or feature may be delayed or not take place at all. 
• Customers who purchase our services should make purchase decisions based on features that are currently available. 

Chat with our experts 

What’s unique about sales and product configuration in the heavy vehicles manufacturing industry (or in other words – CPQ for vehicle manufacturing)? 

I might be the person that has analyzed and spoken to most truck manufacturers in the world in relation to CPQ for vehicle manufacturing. I’ve met 7 out of the 10 largest truck corporations in the world. I thought I might summarize the unique requirements of this industry: 

Legacy 

All truck manufacturers are heavy users of semi-old legacy systems. They have all been configuring their products since the ’80s or ’90s. This means that whatever system (and specifically CPQ) you introduce – needs to be heavily adjusted to fit into the existing system landscape. Many of these systems are very specialized – and sometimes uniquely built for the manufacturers. Since they are often old, good APIs may be missing.  

Systemized BOM usage 

It’s quite common generally in the manufacturing industry to separate Engineering BOMs from Manufacturing BOMs. It’s also getting common to introduce a Service BOM. Since truck companies have been working with configurable products for so many years – they’ve systemized the usage of multiple BOMs.  

One thing that most truck manufacturers use is the concept of a Sales BOM (they might call it something else like ‘Variant Codes’). The idea is to separate the ‘As-sold’ BOM from the ‘As-delivered’ BOM. This also separates engineering updates of BOM-items from Sales. So only when engineering updates actually changes the function the customer receives – that’s the Sales BOM item is updated. This decreases the need for maintenance of CPQ during the product lifecycle.  

Localized needs 

The needs of the customers differ quite a bit between markets, due to environmental, regulatory, or cultural reasons. Local market offices have a big influence on all the three letters of CPQ (configuration logic, how to price the product, and the look-and-feel of the quotes).  

Bodybuilder integration 

A truck is nothing without its body. And bodybuilders are usually local, specialized, and (most often) small companies. Ideally, the customer should be able to configure the vehicle and the body in one CPQ – but that requires a tighter co-operation between the two types of manufacturers.  

As a bare minimum, the CPQ needs to allow for sharing CAD-drawings for the bodybuilder before the truck is actually built. An easy workaround is of course to limit the configurability – and use semi-standardized drawings – but that limits the sales. Note that this does not only apply to mechanical CAD but also circuit diagrams etc.  

Calculations 

There are a number of calculations that need to be done as a part of the sales configuration (e.g. turning radius, weight distribution per axle, powertrain optimization). Some of these calculations are simulations. Let’s take the powertrain optimization: the optimal combination of engine, gearbox, and axle gears for specific usage of the vehicle can’t really be configured. Essentially you have to use heuristic rules to find the most likely good combinations – and then run an external simulation of the combinations. This means that the CPQ has to be ‘open’ for including these calculations – during runtime.  

Complex Configuration 

A truck consists of a large number of configurable options (500+), and each option can consist of many alternatives (20+). This means that the theoretical number of configurations is even larger than the most complex configurations. Most manufacturers solve this by creating ‘sub-models’ – a sub-set of the product which they let their sales reps offer. However, one big issue with this approach is that quite often neither the customer nor sales rep knows exactly which model is the optimal one.  

Traditional guided selling just doesn’t do the trick – because you might not be able to know the best model until you’re halfway through the configuration. The trick here is to let the user configure the whole product family at the same time – and let the configurator help the user find the optimal solution – not necessarily a predefined model.   

There are a lot of unique complexities in CPQ for the vehicle manufacturing and truck industry. These challenges are further complicated by the ongoing COVID-19 pandemic. With less time spent with actual customers in-person, vehicle manufacturers must find ways to engage and optimize their sales processes. With CPQ for vehicle manufacturing, it’s easier than ever to connect the end-to-end buying and selling journey through integrations, visualization, guided selling, and more. Learn more by scheduling your specialized demo with our truck manufacturing experts today! 

Sustainability in Truck and Trailer Manufacturing

According to the United States Environmental Protection Agency (EPA), medium to heavy commercial trucks make up 23% of transport emissions in the country. Countries and customers both are taking notice of increasing emissions challenges as we grapple with climate change. Manufacturers play a key role in a shift towards a more environmentally sustainable transport sector.

While this may be a challenge for the heavy vehicles industry now, it will also present an opportunity for manufacturers to take bold action to meet standards and appeal to a new more conscious buyer. Let’s look at some of the challenges and opportunities for trucking manufacturers:

Changing customer demands

It is now a norm that customers are asking for more data and information from the providers they purchase from, and commercial vehicle buyers are no different. This information includes clear and transparent sustainability metrics that span the lifecycle of the product. A recent Tacton survey found that 12% of manufacturers have seen a significant increase in information requests about the environmental or climate impact of your products.

While this may seem like a challenge at first, manufacturers who can quickly and accurately provide data based on customers’ sustainability requirements will have a better chance of closing deals and giving peace of mind to the customer.

New legislations and requirements

Federal and state legislators are taking the lead in introducing climate regulations for all manufacturers, including truck and trailer manufacturers. Manufacturers must be able to share data about greenhouse gas emissions, waste and more to regulatory officials. When estimating these manufacturers are also asked to consider emissions from the use phase of the products they manufacture, trucks. These emissions are counted as Downstream Scope 3 in carbon accounting.

In the United States, the SEC has proposed a climate disclosure rule, this rule change would require publicly listed companies to disclose climate risks, including their Scope 3 emissions. This of course adds another layer on the calculations that go into configuring trucks and trailers.

New challenges require new solutions:

We’ve noted the importance of CPQ for the day-to-day operations of vehicle manufacturers, a new feature will further help these businesses take their sales pitch a step further by giving customers a holistic view of the climate impact of any product.

Tacton’s Environmental Footprint Configuration (EFC) helps manufacturers configure products using life cycle assessment (LCA) software. Before EFC, manufacturers would need to manually leverage LCA information that would require manual work from experts Traditionally LCAs takes weeks up to months, and tailored LCAs would be performed on the request of the customer, not part of the quoting process.

With EFC it’s possible to see significant cost savings and will help customers make informed decisions that will help reduce their climate footprints. This integration also makes it easier to report to regulators, by incorporating the climate footprint into various documents and reporting requirements, business can effectively streamline their compliance efforts while prioritizing environmental considerations.

Acting on climate change

Truck and trailer manufacturers have a golden opportunity to generate new revenue with CPQ and Environmental Footprint Configuration. Sustainability goals are here to stay, and manufacturers who find ways to offer these products will find themselves winning new customers. These truck manufacturers will also find themselves more appealing to investors as sustainability is an increasing focus for the modern buyer. Manufacturers who offer the most sustainable solutions will win more than ever. Find out how Tacton is enabling leading manufacturers to meet and exceed their sustainability goals by scheduling your demo today!

This originally appeared on CPQ.se written by Patrik Skjelfoss Principal Business Consultant at CPQ.se 

Before co-founding cpq.se Patrik worked with Tacton CPQ for 13 years focusing on Heavy Vehicles and Manufacturing Equipment. 

A little about CPQ.se 

CPQ provides a true competitive advantage for manufacturers. A smooth implementation of CPQ requires the right combination of experience and expertise. cpq.se has successfully carried out CPQ-implementation projects since 2001. This has led them to become experts in the field of CPQ. Today, many large organizations seek their consulting services for updating and expanding CPQ to new divisions and business areas. Their pragmatic approach to CPQ implementation invites their customers to identify their priorities in order to quickly deliver tangible results. 

CPQ.se is headquartered in Uppsala (near Stockholm), and provide their services to the entire northern European region. 

Understanding Systems and Products 

When discussing systems, the term often refers to complex assemblies or setups that encompass a range of interconnected components or processes. Unlike individual products, which tend to have a more fixed and defined architecture, systems are dynamic and can be configured in numerous ways based on user requirements. This distinction is crucial in industries like valve and fluid control solutions manufacturing, where the ability to configure custom solutions is paramount. These custom solutions can contain multiple interconnected systems of valves, and various other options that add to complexity.  

The key characteristic of a system is its open-ended nature: when modeling a system, you have a multitude of configurable products that can vary in number and configuration based on the user’s needs. This flexibility means that changing one component of the system can impact other parts, highlighting the interrelationships and dependencies within the system. 

The Need for System Configuration in Valve and Fluid Control Manufacturing 

In the valve and fluid control manufacturing industry, traditional approaches often involve engineering-to-order (ETO) processes. ETO processes are inherently time-consuming and costly because they rely heavily on the expertise and input of product experts for each unique order. This approach can stifle innovation and slow down time to market, as each solution is essentially a one-off. 

Tacton’s System Configuration aims to transition from ETO to configure-to-order (CTO). By leveraging Tacton’s configuration technology, valve manufacturers can manage a vast array of configurations, translating customer needs into technical solutions more efficiently. This shift not only reduces the reliance on product experts but also improves the overall quality, decreases lead times, and enhances the sales process.

Addressing System Configuration Challenges 

While transitioning to a CTO model offers numerous benefits, it also presents challenges, particularly with large-scale system configurations. These challenges include defining the nature of the problem, managing performance issues, and handling open-ended configurations where the result is not fully known from the outset. 

Tacton’s system configuration addresses these challenges by introducing complementary technology to their existing constraint-based configuration capabilities. This new approach allows for flexible rules and actions at the system level, making it possible to manage larger and more complex configurations without performance degradation. 

Benefits for Stakeholders 

The introduction of system configuration brings significant value to various stakeholders within a fluid control manufacturing organization: 

• Product Managers: Easier introduction and maintenance of system configurations, allowing for more streamlined product definitions and a single source of truth. 
• Modelers and CPQ Administrators: Simplified modeling of complex systems and improved tools for user interactions, enhancing the overall configuration process. 
• Sales Representatives: Enhanced tools for selling systems, enabling quick responses to customer inquiries and reducing the need for backend involvement in all quotes. 

Business Value of System Configuration 

For the organization, system configuration offers numerous benefits: 

• Increased Sales Efficiency: By moving a larger portion of the portfolio to CTO, errors are reduced, and the sales process becomes more efficient. 
• Faster Quote Creation: Quicker and more accurate quote generation, leading to faster time to value and increased revenue. 
• Reduced Customization Risk: Minimizing the need for custom solutions, reducing complexity, and focusing on standardized configurations. 

Tacton’s System Configuration in Action 

Tacton’s system configuration approach involves a two-layer model: the bottom layer consists of individual constraint-based problems (e.g., specific machines or components in a production line), while the top layer represents a network of nodes, each connected by rules and actions. This structure allows for flexible and scalable configurations. 

For example, in a valve manufacturing setup, each machine or component can be configured as a node with specific attributes and connections to other nodes. This setup enables the creation of comprehensive and dynamic solutions tailored to specific customer requirements. 

In closing

By leveraging Tacton’s system configuration technology, valve manufacturers can overcome the limitations of traditional ETO processes and embrace a more efficient and scalable CTO model. This transition not only enhances the sales process and reduces costs but also fosters innovation and faster time to market. With Tacton’s advanced configuration capabilities, valve manufacturers can confidently tackle the complexities of large-scale system configurations, ultimately driving business growth and customer satisfaction. 

In the fast-moving world of business technology, staying ahead of the curve is crucial for success. Manufacturers today need robust tools that empower them to create quotes with precision and efficiency.

Many manufacturers are turning to Configure, Price, Quote (CPQ) solutions to solve their business challenges and meet a changing customer base. For over 25 years Tacton CPQ has been the trusted configuration tool for leading global manufacturers such as Siemens, Xylem, ABB and more.

That is why we’re excited to announce we’ve been named a “Leader” in the 2023 Gartner® Magic Quadrant™ for Configure, Price and Quote Applications.

This is the second year in a row that we have been named a Leader. We believe our positioning recognizes the hard work and innovation that the Tacton team has put in to help our customers.

Has Tacton ever been positioned on the Gartner Magic Quadrant?  

Tacton has been positioned in the Gartner® Magic Quadrant™ for Configure, Price, Quote (CPQ) Applications in 2018, 2019, 2020, 2021, and 2022 

How does a Gartner Magic Quadrant work? 

Gartner Magic Quadrant research methodology provides a graphical competitive positioning of four types of technology providers in fast-growing markets: Leaders, Visionaries, Niche Players and Challengers. As companion research, Gartner Critical Capabilities notes provide deeper insight into the capability and suitability of providers’ IT products and services based on specific or customized use cases.

Why are more manufacturers considering CPQ solutions for their business?

CPQ software has emerged as a valuable tool that can address numerous challenges and help manufacturers streamline their operations, boost sales, and enhance customer satisfaction. This is a clear priority for manufacturers as a recent Tacton survey showed that 74% of the respondents noted the importance of digital transformation to achieve their business goals in the coming year. Here are some key reasons why manufacturers are adopting CPQ: 

Product Complexity Management: CPQ software helps manage this complexity by enabling sales teams and customers to easily configure products according to their specific requirements, ensuring accurate and error-free configurations. 

Speed and Efficiency: Sales representatives can quickly generate quotes and proposals, reducing the time it takes to respond to customer inquiries. This efficiency translates into faster sales cycles and improved responsiveness. 

Improved Customer Experience: CPQ solutions offer a more interactive and personalized buying experience for customers. Customers can configure products themselves, view real-time pricing, and receive instant quotes, leading to higher satisfaction levels. 

Sustainability: Sustainability has become a central focus for many manufacturers as they aim to reduce their environmental footprint and meet the growing demand for eco-friendly products. Using CPQ it’s possible to share carbon footprint with both customers and regulators.  

These are just a few of the challenges CPQ can address. To better understand the full CPQ picture read more on our product page!  

The future of CPQ  

As manufacturers strive for greater efficiency, customization, and competitiveness, CPQ systems will become indispensable tools. These platforms enable businesses to streamline their processes, from configuring complex products to generating accurate quotes and pricing in real-time.  

In an era where customization and speed-to-market are paramount, CPQ systems will be the cornerstone of manufacturing success, offering a strategic advantage by empowering manufacturers to efficiently meet the diverse needs of their customers while maintaining profitability. 

Tacton is committed to helping manufacturers excel in configuring, pricing, and quoting with precision and speed. 

What’s next? 

Download the report from here.

Schedule your personalized demo today! 

Gartner Disclaimer   

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 and Magic Quadrant are registered trademarks of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved.   

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. 

Many customers have a need to optimize the available floor space before placing an order for equipment or systems. One critical aspect of this optimization is layout planning, which involves designing the most efficient arrangement of machines, workstations, and resources within a manufacturing facility or industrial environment.   

Having a well-organized environment is crucial for achieving success, and any inaccuracies can result in significant costs for customers. That’s why more customers are making large efforts to create a perfectly optimized space.  

That’s all changing with Tacton’s Layout Planning, an exciting new approach combining Configure, Price, Quote (CPQ) and Visual Configuration, manufacturers are now able to empower their sales reps to quote large scale systems faster and increase win rates by providing visuals that fit directly into customers floor layouts. Let’s take a deep dive into Tacton Layout Planning.  

What are common challenges manufacturers face when selling large scale systems? 

Manufacturers have been struggling to keep up with customer demands. This is especially true when it comes to selling products that need to fit into specific plant floor layouts. The quoting process is often full of errors, bottlenecks and incorrect data that lead to misquoting, delays and ultimately disappointed customers. 

What is Layout Planning? 

Layout Planning is a tool that simplifies customers understanding of how a machine or system will fit on their plant floor. During the quoting process sales reps can place and arrange the whole system configuration or individual machinery directly in the floor plan provided by a prospect or customer. By providing this visualization to customers it helps support their choices by providing layout plans to the corresponding configuration.  

What does the process look like without Tacton Layout Planning? 

In the not-so-distant past, manufacturers and their customers faced a series of challenges when it came to planning and configuring equipment layouts. The process went something like this: 

• Customer Needs: Customers often had concerns about how the manufacturer’s equipment would physically fit into their facility. Questions about space requirements and compatibility were common. 
• 2D Floor Plans: Sales representatives would then request 2D floor plans from customers to facilitate engineering reviews. This step aimed to ensure that the equipment could be accommodated within the available space. 
• Engineering Review: The customer-provided 2D drawings were sent to the engineering team for review. Engineers would scrutinize the plans for any potential conflicts or constraints. 
• Engineer Feedback: After the engineering review, feedback will be relayed back to the sales reps. This feedback could involve necessary adjustments or even limitations on the equipment’s placement. 
• Customer Feedback Loop: If changes were needed, the process repeated, causing significant delays. These delays presented opportunities for competitors to jump in and provide quotes faster. 

What was quoting like before and after Layout Planning?

 

How is the sales cycle expedited with Layout Planning? 

Faster Quotation Process 

Users of Layout Planning can significantly speed up the quotation process by reducing manual handovers and providing visual layout feedback to customers, leading to higher win rates. 

Visualization

One of the most significant advantages of Layout Planning is the ability to visualize equipment placement in 3D. This enhances understanding, as stakeholders can see exactly how the equipment fits within their facility. 

Layout Planning extends Tacton’s existing visual configuration capabilities, empowering CPQ users to position and orient components of the configuration visually through simple drag-and-drop actions. 

No CAD expertise or other software needed

Layout Planning allows sales representatives to create a visual layout of equipment and systems while adjusting configurations without additional CAD software or engineering involvement. 

Streamlining Communication

Layout Planning with CPQ bridges the communication gap between customers, sales representatives, and engineers. Instead of relying on 2D floor plans and back-and-forth emails, CPQ and Layout Configuration provide a way to share quotes that both the sales reps and customers can trust. 

Flexibility

If changes are required, it’s fast and easy to adjust. Customers can see the impact of alterations immediately, ensuring a more dynamic and responsive planning process. Users can adjust configurations to specific spatial needs and requirements, whether unconstrained, in pre-defined positions, or based on uploaded 2D floor plans of existing buildings and environments.

Competitive Edge

With streamlined processes, manufacturers can provide quotes faster and with greater accuracy. This minimizes the window of opportunity for competitors and enhances the manufacturer’s standing in the eyes of the customer. 

Enhanced Customer Experience

Efficient layout planning translates into a smoother customer experience. Customers appreciate the responsiveness and precision that layout planning brings to the table. 

In closing 

Today’s market is increasingly competitive, this makes optimizing efficiency paramount. Traditional methods often lead to inaccuracies, delays, and customer dissatisfaction, creating significant challenges for manufacturers. 

Tacton’s Layout Planning, is a game-changer. It empowers sales reps to quote individualized equipment or large-scale systems faster working alongside the customer. By providing customers with visuals that align perfectly with their real-world spaces, Tacton Layout Planning addresses the common challenges manufacturers face when selling complex systems. 

In a world where success is often determined by speed, accuracy, and customer satisfaction, Tacton Layout Planning is a powerful tool that is reshaping the manufacturing landscape and setting new standards for industrial efficiency. It empowers manufacturers to meet customer demands with confidence and agility, ensuring they remain competitive in a rapidly evolving market. 

Learn more in our video on Layout Planning!:

Interested in learning more? Schedule your call with us today!  

Schedule your demo!