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!

 

The digital landscape is changing faster than ever for buyers across every industry. Many have found new and engaging ways to connect with digital native and savvy buyers who demand seamless buying experiences.  

Creating these exciting experiences hasn’t been so easy for manufacturers who are attempting to cater to a new online industrial buyer. Today’s B2B customers demand the same level of convenience, reliability, and seamless experience they encounter in their personal online shopping, but for their manufacturing products as well. This is no small task of course for manufacturers with highly configurable products.  

Let’s explore the latest insights into the industrial buying journey, the challenges faced, and how manufacturers can address these pain points to provide a transformative selling and buying experience by using Tacton CPQ. 

The Changing Landscape of Industrial Buying 

A recent study by Accenture sheds light on the industrial buying journey and the main pain points experienced by B2B buyers. The study, conducted globally with senior executives in purchasing roles, highlights the shift in expectations and the critical factors driving customer satisfaction.

Let’s dive into the results and examine the primary pain points throughout the customer journey. The top concern identified is reliability. The findings reveal a fascinating trend: most pain points are behavioral rather than product related.  

In other words, most issues stem from interactions and activities surrounding the product, rather than the product itself. This insight offers a clear direction for improving the buying journey, as many of these pain points present opportunities for quick wins and straightforward fixes. 

Reliability and convenience emerged as the top drivers, accounting for half of the pain points. As we break down the customer journey, from the initial search to after-sales service, it becomes evident that expectations shift at different stages. 

Customer Expectations Per Step 

1. Search and Comparison: Customers expect a convenient experience, often favoring self-service options. This preference for convenience continues through the product comparison and selection phases. 
2. Purchase and Delivery: The emphasis shifts to reliability. Customers expect the configured product to be delivered as specified, without issues and quoting mistakes. Instances where configured products cannot be built lead to significant frustration. 
3. After-Sales: Reliability remains crucial, ensuring that the product performs as promised. Responsiveness is also important, and leveraging the latest technology can facilitate rapid responses to customer inquiries. 

Addressing Pain Points with Digital Transformation 

For industrial manufacturers, addressing these pain points is not just a nice-to-have but a necessity to stay competitive. Here’s how manufacturers can tackle these challenges head-on: 

Ensure Reliable Configuration

Manufacturers must ensure that configured products are producible and meet customer expectations without deviation. This involves robust integration with ERP, CRM and PLM systems to guarantee that what is configured can be built. 

Simplify and Enhance the Buying Experience Across Channels

Streamlining processes and offerings can significantly enhance the customer experience.  Tacton CPQ provides one source of truth for reliable and consistent configurations across all sales channels, ensuring that updates and innovations are reflected simultaneously. 

This also means that the updates to the products are also available to all sales channels at the same time, making the latest innovations and price lists up-to-date and making set-up and maintenance easier.  

Leverage Self-Service and Digital Tools

Providing self-service capabilities such as visualization, immediate pricing, and sales BOM (Bill of Materials) empowers buyers to make informed decisions quickly. Documents like quotes, CAD drawings, and layout plans need to be readily available to facilitate internal decision-making within buying teams. 

The Power of Omnichannel Sales and CPQ 

By embracing omnichannel sales, manufacturers can provide a seamless and consistent experience across all touchpoints. This involves embedding CPQ solutions in a platform-agnostic manner, allowing for flexible and brandable UIs without requiring extensive front-end development skills. The goal is to provide reliable configuration, accurate pricing, and immediate responsiveness, meeting the expectations of modern B2B buyers. 

Learn more in our latest webinar

Driving Business Value with Omnichannel Sales and CPQ

The business value of these capabilities is immense: 

• Enhanced Deal Attraction and Conversion Rates: Engaging prospects early in the buying journey and providing a seamless experience increases the likelihood of converting leads into customers. 
• Diversified Sales Portfolio: By offering a comprehensive and user-friendly online configurator, manufacturers can cater to a broader audience across channels. 
• Solution Selling: By focusing on understanding the specific challenges and needs of each customer, sales teams can offer tailored solutions that address those needs comprehensively. This approach not only enhances customer satisfaction but also positions the company as a trusted advisor, leading to stronger relationships and increased sales. 
• Selling on Business Values: Buyers can purchase based on their needs such as lowest purchasing price, lowest total cost of ownership, highest uptime, highest performance. 
• Faster Time to Market: Streamlined processes and reliable configurations reduce lead times, enabling manufacturers to bring products to market more quickly. 
• Improved Customer Satisfaction: Meeting the expectations of today’s B2B buyers leads to increased satisfaction and loyalty. 

In closing: 

The industrial buying journey is evolving, and manufacturers must adapt to meet the changing expectations of digitally native buyers. By addressing pain points related to reliability and convenience and leveraging modern digital tools, manufacturers can provide a transformative buying experience that drives sales growth. At Tacton, we’re committed to helping manufacturers reimagine their digital sales transformation and achieve success in the digital age. 

Ready to transform your sales process and meet the demands of modern B2B buyers? Discover how Tacton’s CPQ solutions can help you achieve your goals by scheduling your demo today or watching the full webinar, “Top factors impacting Industrial Buying and Tactics to boost B2B growth with Omnichannel Sales” today! 

What Challenges can CPQ Solve?

Precision, efficiency and profitability are all signs of a healthy manufacturing organization, but achieving these goals is a challenge for many businesses. Manufacturing executives face an array of challenges in their quest to hit these goals.

From an unpredictable supply chain, a changing buyer demographic and sustainability initiatives, the manufacturing sector demands adaptability and innovation. However, amidst these demands, several pain points consistently emerge for manufacturing executives, hindering their ability to thrive in an increasingly competitive market.

Understanding the Pain Points:

1. Process Efficiency:

Product complexity and customer demands have made the process of configuring, pricing and quoting products for manufacturers a huge challenge. These inefficiencies are caused by time-consuming, manual processes that are used to create quotes for customers.

Finding ways to cut down on the time required to create quotes will be a major success factor for new solutions. Streamlining these processes is crucial for enhancing efficiency and reducing manual and time-intensive administrative tasks.

2. Cost Reduction and Margin Improvement:

Every manufacturing operation is actively pursuing strategies to reduce operational costs and enhance profit margins. This involves empowering sales teams to focus on selling value rather than solely emphasizing functions and features. Additionally, companies aim to minimize expenditures related to maintaining existing systems and mitigate quoting errors to prevent revenue loss.

3. Sales and Customer Experience Transformation:

A strong momentum in manufacturing exists towards digital transformation initiatives, encompassing the modernization of sales processes, the adoption of cloud-based solutions to enhance scalability and cost-effectiveness, and the integration of new features aimed at bolstering business support capabilities. But with so many options and different paths executives can take it’s difficult to find a solution that can handle all the challenges faced by a modern manufacturing operation.

Companies strive to enhance the purchasing journey and sales strategies by refining e-commerce interfaces and user experiences (UX). Manufacturers need to adopt strategies that make it easy to sell their products, while also creating an exciting buying experience for their customers.

Additionally, they seek to empower dealers and sales representatives with shared and holistic solutions enabling them to generate precise dimensional drawings and quotes swiftly.

5. Sales and Technical Brain Drain

Many manufacturers also face staffing issues, retirements and key member departures can lead to brain drain for the organization. In 2023 alone, manufacturers on average saw turnover rates at a staggering 28.6%. Adopting new solutions and automation can enhance operational efficiency, improve product quality, and streamline processes by reducing the reliance on a few critical resources companies use to quote their products.

6. Sales Execution and Customer Experience Analytics:

Companies are seeking to streamline their operations by consolidating various systems and configurations, aiming to achieve a unified perspective of the sales lifecycle. This consolidation not only enhances accountability but also minimizes the time required for generating quotes.

7. Competitiveness and Market Adaptability:

In the face of escalating competition, companies must remain agile and adaptable. Finding a solution that decreases costs, boosts sales efficiency, and enables quick adaptation to market changes, ensuring competitiveness in the long run will be critical to success. Find out

 How Tacton Addresses These Trends:

CPQ solutions like Tacton offer a comprehensive suite of features tailored to address the unique pain points of manufacturing executives:

Replicating Your Best Sales Reps and Solution Consultants

With Tacton’s advanced configuration it’s easier than ever to guide customers and sales reps through the sales process. This ensures that even less experienced sales reps can make accurate and optimal product configurations that meet customer needs, like what an expert would do.

Tacton also dynamically generates prices and quotes based on the selected configurations, this ensures that pricing is always accurate and competitive, a task that many times requires deep product and market knowledge.

Simplifying Product Configuration:

CPQ enables manufacturers to streamline product configuration by providing intuitive tools for managing complex product catalogs. By centralizing product data and automating configuration processes, CPQ minimizes errors and ensures consistency across quotes. Find out how our customer IMI uses Tacton to manage their global portfolio of products with Tacton.

Automating Quoting Processes:

With CPQ, manufacturers can automate the generation of quotes, reducing the time and effort required to produce accurate proposals. By integrating with CRM systems and ERP software, CPQ streamlines workflows and facilitates collaboration between sales and engineering teams.

Dynamic Pricing Optimization:

CPQ offers advanced pricing capabilities, allowing manufacturers to implement dynamic pricing strategies based on real-time market data and customer insights. By leveraging pricing analytics CPQ helps manufacturers maximize profitability while remaining competitive.

Accelerating Sales Cycles:

By streamlining quoting processes and providing sales reps with access to self-service tools and guided selling workflows, CPQ accelerates sales cycles and improves win rates. Our customer Siemens reduced quoting time from 8 days to minutes.

Guided Selling and Visualization: 

With features like Guided Selling and 3D Visualization, Tacton enables manufacturers to enhance the sales experience and drive customer engagement through interactive product presentations. 

Confidence for the Newest Sales Rep

With the help of CPQ it’s easier than ever to bring your newest sales reps up to speed on the product portfolio. By creating an error-proof and accurate process with CPQ, even new sales reps can build confidence in selling to your prospects.

Customer-Centric Approach:

Tacton’s customer-centric approach ensures end-to-end support, from lead generation to order fulfillment, fostering long-term relationships and customer satisfaction.

Optimize Products Based on Sustainability Requirements:

With Tacton’s Environmental Footprint Configuration it’s easier than ever to integrate with Life-Cycle Assessment tools to empowers your sales rep or end customer to reduce the footprint through product selections to meet their needs and legislative requirements.

Why Now is the Time to Invest in CPQ:

Amidst technological advancements, market dynamics, and strategic imperatives, the urgency to adopt CPQ solutions has never been greater. With Tacton’s proven track record, industry expertise, and sector-specific solutions, manufacturers can overcome their pain points and embark on a journey towards operational excellence and sustainable growth.

Ready to learn more about how CPQ is changing manufacturing? Get in contact with us!

Let’s chat

Complex manufacturing has fundamentally changed in the past decade. Businesses in the industrial, power generation, elevator and other manufacturing sectors have had to change how they operate. Global competition, supply chain interruptions, and labor shortages are just a few of the challenges businesses have faced.

These challenges have left manufacturers no choice but to digitally transform or disappear. Our latest survey found that 64% of manufacturers are either in the early stages, or well into their digital transformation efforts.

Many of these companies are spearheading their digital transformation efforts with CPQ (Configure, Price, Quote) systems because these tools dramatically enhance the efficiency and accuracy of their sales processes, leading to increased customer satisfaction and higher revenue. While customer satisfaction and higher revenue are always on the top of mind for manufacturers, another key feature of CPQ is the wealth of data it provides. This data encompasses configuration selections, sales BOMs, pricing levels, won-lost data and more.

Let’s explore seven use cases that demonstrate how manufacturers can leverage CPQ Analytics to gain valuable insights and drive business decisions. These use cases highlight the unique nature of CPQ data, which is not typically found in other enterprise systems.

What are some common CPQ Analytics Use Cases?

1. Sales Pipeline Analysis

The first use case focuses on sales pipeline analysis. Opportunities can be visualized at various stages of the sales process, from design solution all the way through to order.

With CPQ analytics, it is possible to identify where opportunities are getting stuck, particularly in the final negotiation stage. By examining both the number and the size of opportunities in different stages, efforts can be prioritized to unblock high-value deals. Additionally, the API allows filtering this data by year, providing a temporal perspective on the sales pipeline.

2. Price Positioning Analysis

Next up is price positioning analysis. This analysis helps understand the margin and size of different opportunities.

For instance, patterns in high-margin deals can be seen—whether those deals tend to be won or lost. This analysis can be segmented by application, industry, and year, offering a granular view of pricing strategies. These insights help refine the approach to pricing and ensure competitiveness in the market.

 

3. Parts Reduction Analysis

The third use case is parts reduction analysis. Here, the choices made by customers during the configuration process are analyzed, focusing on various components and materials.

By examining these choices, parts that are rarely selected can be identified. This insight allows for streamlining product offerings, reducing inventory costs, and focusing on popular options that drive sales. Additionally, visualizing these choices in a 3D environment provides a clearer understanding of customer preferences.

4. Product Market Fit Analysis

Product market fit analysis is the fourth use case. This analysis compares customer requirements with the solutions provided, highlighting any over-dimensioned products.

Using a slider tool, solutions that exceed customer requirements by a significant margin can be filtered out. With Tacton, This helps determine if new variants need to be developed that better match customer needs, ensuring products are neither overbuilt nor under-equipped. Refinement and aggregation of the data is handled by the manufacturers preferred Business Intelligence tool such as Qlik, Microsoft BI or Tableau.

5. Service Upsell Analysis

The fifth use case is service upsell analysis. This analysis examines additional services chosen by customers, such as express installation, and their relevance across different industry segments.

By identifying which segments—like medical or public transport—opt for these services, marketing strategies and upsell efforts can be tailored more effectively. Understanding these choices during the configuration process helps align service offerings with customer needs.

6. Customer Value Driver Analysis

Finally, customer value driver analysis focuses on high-importance questions within the configuration process, which are crucial to customer satisfaction.

Analyzing whether customers are actively choosing these options or simply accepting default suggestions reveals how relevant these value drivers are across various industries. This insight helps refine the configurator and improve customer engagement.

7. Quoting Analytics

The additional section is quoting analytics. This use case involves analyzing the quoting process to identify trends and inefficiencies.

By leveraging CPQ analytics, data on quote generation times, approval rates, and conversion rates can be gathered and examined. This analysis can reveal bottlenecks in the quoting process, highlight the most and least effective sales tactics, and provide insights into quote acceptance patterns. Understanding these factors helps streamline the quoting process, ensuring faster turnaround times and higher quote acceptance rates.

In closing

Uncovering and utilizing the wealth of data that comes from CPQ analytics can be a true game changer for manufacturers. With this data it can be easier than ever to understand products, customer needs and more while creating actionable insights to make it easier for your teams to sell their products.

Check out more info about CPQ analytics here! 

In the quickly changing landscape of manufacturing, adaptation isn’t just a choice—it’s a survival strategy. The fourth edition of “The State of Digital Manufacturing 2024: Unlocking the Power of Digital Transformation,” provides a comprehensive look into the industry’s journey towards resilience and innovation. Through surveys and analysis, we unveil key insights that illuminate the path forward for manufacturers worldwide.

As part of our annual survey, we asked manufacturers about Digital Transformation efforts, 2024 Priorities and Sustainability. In addition to that, we also analyzed how the maturity of digital implementations impacts several areas of their business such as revenue generation, profitability & productivity. Our findings clearly indicate that manufacturers who are advanced in their digital transformation projects realize much more value than those who haven’t planned or are just starting out. Let’s review our key findings in this area:

Digital Transformation: A Strategic Imperative

The tumultuous events of recent years—from the pandemic to market fluctuations—have underscored the need for agility and foresight in manufacturing. Digital transformation emerged not just as a buzzword but as a strategic imperative, offering a lifeline for those seeking to enhance efficiency, optimize resources, and fortify operations.

Our findings reveal a significant divide between manufacturers embracing digitalization and those hesitating on the sidelines. Advanced digital implementations correlate with enhanced profitability, increased sales, and improved productivity. Companies at the forefront prioritize investment initiatives such as supply chain optimization, digitalization of internal processes, and AI integration, reaping the rewards of innovation and forward thinking.

Get the complete survey

The Impact of Delaying Transformation

Delaying digital transformation can have significant consequences for manufacturers, as evidenced by the data highlighting the benefits of advanced digital implementations:

Enhanced Profitability: Advanced digital implementations correlate with improved profitability, with 57% of firms benefiting compared to 38% at early stages. Delaying transformation hinders process optimization, cost reduction, and revenue maximization, affecting the bottom line.

Increased Sales: Firms with advanced digital implementations see a notable increase in sales (48%), while those lagging report only 10% growth. Digital technologies drive sales by reaching new markets, streamlining processes, and enhancing customer experiences. Delaying transformation risks missing out on sales opportunities and falling behind competitors.

Productivity Boost: Manufacturers in advanced digital stages experienced improved productivity (74%) compared to those at initial stages (53%). Digital tools automate tasks, optimize workflows, and empower employees, enhancing efficiency. Delaying transformation reduces productivity gains and hampers agility in meeting market demands.

However, delaying digital transformation comes at a cost. Laggards risk falling behind in a competitive landscape shaped by rapid technological advancements. With each passing day, the gap widens between those harnessing the power of digital tools and those clinging to outdated practices. Enhanced profitability, increased sales, and productivity gains remain elusive for those resistant to change.

Priorities in a Shifting Landscape

As the economic outlook fluctuates, manufacturers face critical decisions about where to allocate their resources. Reducing costs, minimizing errors, and enhancing product quality emerge as top priorities in navigating uncertain times. Supply chain optimization remains paramount, underscoring the importance of resilience and adaptability in an interconnected global market.

Reducing costs has remained the most important area for manufacturers to bolster growth in 2024. This can be attributed to companies trying to maximize profit and reduce risk with the possibility of an uncertain economy.

Reducing errors and rework is vital for manufacturers as it directly impacts financial efficiency, product quality, and brand reputation, these are just a few reasons why there was a 13% increase in these initiatives since last year. Minimizing mistakes not only cuts additional costs but also ensures consistent high-quality products, enhancing customer satisfaction and safeguarding the company’s image

Artificial Intelligence

59% of our survey respondents are showing some level of excitement for AI in their manufacturing process. This group views AI as a catalyst for unprecedented innovation, efficiency, and competitiveness. They foresee a future where intelligent machines optimize processes, enhance productivity, and contribute to the development of cutting-edge products.

Delaying digital transformation, especially in adopting AI, can severely impact manufacturers:

Competitive Gap: Companies advanced in digitalization are much more excited about AI (52%) than those just starting out (21%). This indicates a significant competitive disadvantage for laggards, as AI drives insights, efficiency, and personalized experiences crucial for sales success.

Sustainability: A Cornerstone of Success

In an era defined by environmental consciousness and regulatory scrutiny, sustainability takes center stage. Manufacturers recognize the intrinsic link between sustainability initiatives and long-term success. Embracing sustainable practices not only meets consumer demands but also drives innovation, fosters resilience, and enhances brand reputation.

Manufacturers are increasingly propelled towards sustainability by a two-fold force: 61% respond to the demands of environmentally conscious consumers seeking products with minimal environmental impact.

Simultaneously, 44% are driven by a shifting regulatory landscape, including initiatives like the EU Green New Deal and the SEC climate disclosure Rule. These regulations set higher standards, compelling manufacturers to adopt sustainable practices not just for compliance but as a strategic necessity.

Looking Ahead with Tacton

As manufacturers embark on the journey ahead, Tacton stands as a trusted partner, empowering businesses to navigate complexities and seize opportunities. With our industry-leading CPQ solution, manufacturers can efficiently manage product variations, meet dynamic customer expectations, and thrive in the competitive landscape of 2024 and beyond.

In conclusion, “The State of Digital Manufacturing 2024” offers a roadmap for manufacturers navigating an era of unprecedented change. By embracing digital transformation, prioritizing sustainability, and leveraging innovative solutions, businesses can chart a course towards resilience, growth, and success in the years to come.

Get the full survey results 

How CPQ is Revolutionizing Manufacturing E-commerce: A Game-Changer for Customers

The demand for e-commerce for manufacturing has rapidly changed from a low priority to a top priority in the past decade alone. With nearly every industry shifting to an online buying journey it’s critical for manufacturers to offer a fully integrated e-commerce journey for customers.

While this is commonplace in other industries such as retail, e-commerce for manufacturers has at times been a long, slow journey. Many manufacturers are wondering how we got to this point and are looking for ways to transform how they deal with online selling, to understand where e-commerce for manufacturing is going, we must understand how we got here.

In today’s fast-paced digital economy, manufacturers are continuously striving to enhance their customer experience while streamlining their internal processes. With the rise of e-commerce, manufacturers are increasingly turning to Configure, Price, Quote (CPQ) solutions to not only optimize their sales operations but also to empower customers with seamless and personalized buying experiences. CPQ is emerging as the linchpin in manufacturers’ efforts to enable e-commerce, driving efficiency, accuracy, and customer satisfaction to new heights.

The Evolution of Manufacturing E-commerce

Gone are the days when purchasing from a manufacturer involved lengthy back-and-forth communication, paper catalogs, and manual quoting processes. In the digital age, customers expect the same level of convenience and customization from manufacturers that they experience when buying from consumer-oriented e-commerce platforms.

Manufacturers recognize this shift in customer expectations and are adapting by embracing e-commerce channels. However, unlike retail e-commerce, where products are often standardized, manufacturing involves complex, configurable products that require tailored solutions. This is where CPQ comes into play.

Now that the buying profile of manufacturers is changing to a younger, more online buyer it is as critical as ever to be able to actually sell highly-configurable products online. While many manufacturers we’re in the beginning phases of enabling e-commerce for customers, the COVID-19 Pandemic accelerated efforts to sell online. After the challenges and stress the pandemic put on manufacturers, many are now seeing the importance of e-commerce:

According to a PwC survey,

66% of US Manufacturers agree that implementing e-commerce over the next two years is a “high” or “very high” priority” 

The Role of CPQ in Manufacturing E-commerce

CPQ software enables manufacturers to efficiently manage complex product configurations, pricing, and quoting processes. By integrating CPQ into their e-commerce platforms, manufacturers can provide customers with a user-friendly interface to configure products according to their unique requirements. This level of customization not only enhances the buying experience but also ensures that customers receive accurate quotes in real-time.

Here’s how CPQ is revolutionizing manufacturing e-commerce:

Streamlined Configurability:

CPQ solutions allow customers to easily customize products by selecting various features, options, and accessories through an intuitive interface. Whether it’s specifying dimensions, materials, or functionalities, customers can configure products according to their exact needs, leading to increased satisfaction and reduced order errors.

Dynamic Pricing:

With CPQ, manufacturers can implement dynamic pricing strategies based on factors such as product configurations, quantity discounts, and contract pricing. This ensures that customers receive fair and transparent pricing while maximizing revenue for manufacturers. Real-time pricing calculations enable customers to make informed decisions without delays or uncertainties.

Accelerated Quoting Process:

Traditionally, generating quotes for complex products could take days or even weeks due to manual calculations and approvals. CPQ automates the quoting process, significantly reducing turnaround times. Customers receive accurate quotes instantly, empowering them to make purchasing decisions quickly and efficiently.

Integration with CRM, ERP and more:

Integrating CPQ with CRM, ERP, is instrumental in optimizing manufacturing operations and delivering exceptional customer experiences. By harnessing the capabilities of these integrated systems, manufacturers can streamline workflows, improve data accuracy, and foster greater customer satisfaction. As the manufacturing landscape continues to evolve, seamless integration across sales, manufacturing, and customer service functions will remain essential for driving growth and maintaining competitiveness.

An expectation of Self-Service

With the accuracy needed for custom product quotes it’s important to implement products like CPQ as a solution that enables e-commerce for manufacturing. Proving fast accurate products will help customers get what they need when they need it.  This has created a shift that enables customers to buy using self-service without interacting with a sales team.

Gartner research reveled that 75% of B2B buyers prefer a rep-free sales experience.

With that in mind it’s as important as ever to offer buyers multiple ways to buy your products.   Enabling an online shopping cart makes it easy for customers to buy from home, the warehouse, or in the field for an expedited process. A great self-service experience for manufacturers will highlight the value of any specific product.

A move towards a seamless experience

Omnichannel has been a popular buzzword across industries for the last few years. Simply put an omnichannel experience for manufacturing customers creates a seamless, multi-touchpoint buying experience. Manufacturers have failed to create an experience that is like Amazon or big retailers, which lets them know the status of their products after a purchase. As reported by Gartner, B2B customers spends merely 5% of their buying journey with your sales reps. Manufacturing companies need to find ways to influence customer decisions, especially early in buying journey. With that in mind, many manufacturers’ have shifted to creating an omnichannel experience that will keep the customer close, informed, and ready to buy again.

Customers want to have a unified experience that gets them their products from any channel at any time. Your customers want to be able to check the status of every order whether it’s in design, in production, or being shipped to their office. Without a connected experience, customers will opt for companies that let them know every detail about the product they’ve purchased.

Putting the product at the center of the e-commerce journey

Product information is nearly as important as the final product that’s delivered to your customer’s door. But many manufacturers have failed to give anything more than text-based product descriptions coupled with CAD drawings to their customers.

Ask yourself a simple question, when was the last time you bought any product site unseen? Without proper visuals in an e-commerce shopping cart manufacturers will continue to struggle selling to an increasingly demanding customer pool. That’s why it’s important to enable customers to be as informed as possible about your product offering by giving them visuals and tech specs.

Visual configuration for manufacturers has made it easier than ever to not only give visuals but let customers build their own products that are 100% configurable. This will lend trust to your business while also providing a new exciting way to showcase your products, online, anytime.

 

The change is here are you ready?

Simply put, if manufacturers fail to offer an e-commerce journey for their customers they will struggle to sell and ultimately lose to the competition who enable an exciting and easy buying journey. With so much at stake it’s time to start looking for solutions that transform how to sell highly-configurable products. Setting up an e-commerce solution coupled with CPQ can help make your business the envy of the industry by creating quick, accurate quotes that can be sold bought and sold online.

If you want to learn more on how Tacton CPQ Omnichannel can reinvent your go-to-market  – even for highly individualized industrial products – head over to our web page or schedule your personal demo today!

Specialty and Heavy Vehicle Dealership Models are changing quickly

The heavy & specialty vehicles industries represent an industry dedicated to designing and manufacturing commercial vehicles tailored for specific functions across diverse fields such as trailers, RVs, construction, mining, agriculture, and other heavy-duty applications.  

These vehicles are customized with advanced features and technologies to address unique operational demands, driving continual innovation and adaptation to meet the evolving needs of specialized applications.  

In today’s rapidly evolving vehicle industry, sales strategies face three critical challenges:

1. Dealership Model Transformation: The shift towards direct sales and online platforms challenges traditional dealership models. To remain competitive, manufacturers must adapt their sales strategies and customer engagement approaches significantly. 
2. Omnichannel Sales: Providing a seamless omnichannel experience requires integration across multiple platforms and channels. Failure to offer a customized buying experience while maintaining brand cohesion can hinder success. 
3. Customer Self-Service: Increasingly, customers expect the ability to customize and purchase vehicles online without direct sales assistance. 

Vehicle Dealership Model Transformation Affecting Heavy & Specialty Vehicle Sales 

Today’s buyers are no longer content with the traditional, linear path to vehicle purchase; they demand a seamless, personalized experience that spans digital and physical locations.  

The New Customer Journey in Commercial Vehicle Sales 

The journey of purchasing a commercial vehicle has expanded beyond the dealership’s showroom to include digital exploration, comparison, and customization, and frankly – to resemble the consumer buying experience and expectation. Modern customers start their journey online, expecting to research, configure, and even negotiate deals in a virtual space before they consider a visit to a physical location.  

This shift necessitates a unified approach to sales, one that Configure, Price, Quote (CPQ) software is uniquely equipped to provide. 

The Omnichannel Sales Strategy  

CPQ software integrates into the dealership’s sales strategy, offering a cohesive experience for the buyer, whether they’re online, on their phone, or in the showroom. Here’s how CPQ solutions are transforming the vehicle sales process: 

Digital Showrooms and Vehicle Configurators 

CPQ solutions empower dealerships to create online showrooms and detailed vehicle configurators, allowing customers to explore options, customize their vehicle to their preferences, and understand pricing in real-time — all from the comfort of their home. 

Unified Customer Data for Personalized Engagement 

By centralizing customer data from various touchpoints, CPQ enables dealerships to offer personalized engagement and recommendations. Sales representatives gain insights into a customer’s online activities, preferences, and interactions, allowing for tailored conversations and offers when the customer enters the dealership. 

Enhancing Mobile and Social Media Sales Channels

With CPQ, manufacturers can extend their sales channels beyond the traditional. Customers can configure their vehicles via a mobile app, engage with dealers through social media platforms, and even complete parts of the sales process virtually, ensuring a seamless transition between channels. 

Seamless In-Store Experiences Augmented by CPQ

When a customer visits the showroom, the dealership staff can access the configurations and preferences saved online, thanks to CPQ integrations. This continuity ensures that the in-person experience is not just a repeat of online activities but an enhanced phase where sales representatives can offer deeper insights, finalize configurations, and close deals with confidence. 

Overcoming Challenges with CPQ

Transitioning to an omnichannel sales model with CPQ does pose challenges, including the integration with existing systems and training staff to utilize new tools effectively. However, the return on investment is substantial, offering dealerships the ability to meet modern consumer expectations, streamline the sales process, and increase customer satisfaction and loyalty.

Data Privacy and Security

With CPQ solutions, managing customer data across multiple channels becomes more secure and compliant with privacy regulations. CPQ platforms are designed with robust security measures to protect sensitive customer information, ensuring trust and compliance. 

Embracing Self-Service Sales in the Heavy & Specialty Vehicle Industry

In the context of the evolving vehicle dealership model, self-service sales capabilities are becoming increasingly pivotal. The shift toward digitalization, accentuated by the demands of modern consumers for autonomy and instantaneity, has made self-service an essential component of the sales strategy in the heavy and specialty vehicle sector.

Empowering Customers with Information and Control

Self-service in vehicle sales allows customers to take control of their buying journey, offering them the ability to explore, configure, and even purchase vehicles without direct interaction with sales personnel. This capability aligns with the preferences of today’s digital-savvy, sustainable buyers, who value the convenience and speed of online transactions.

• Interactive Online Configurators: By providing detailed, user-friendly configurators online, dealerships enable customers to tailor vehicles to their exact specifications. This not only enhances the customer experience but also streamlines the sales process, as the configurations provide a solid starting point for any subsequent sales discussions. 
• Comprehensive Product Information: An essential element of effective self-service is access to detailed, clear, and accessible product information. This ensures that customers can make informed decisions, reducing the need for clarification from sales staff and increasing customer confidence in the purchase. 
• Online Pricing and Financing Tools: Transparent pricing and accessible financing options are crucial for empowering customers to make purchase decisions independently. By offering these tools online, dealerships can facilitate a smoother, faster sales process that meets the expectations of modern consumers. 

Integrating Self-Service with Personalized Sales Support

While self-service capabilities offer numerous advantages, they are most effective when integrated into a broader, omnichannel sales strategy that includes personalized support: 

• Seamless Transition to Sales Support: While many customers appreciate the ability to control their journey, access to expert assistance when needed is vital. Dealerships can integrate chatbots and live chat options, ensuring that customers can easily transition from self-service to human support. 
• Data-Driven Personalization: The data gathered from customers’ online activities can be leveraged to provide personalized assistance when they choose to engage with sales staff. This integration ensures that the sales team is well-informed about the customer’s preferences and requirements, facilitating more meaningful and efficient interactions. 
• Consistent Omnichannel Experience: Ensuring consistency across all channels—whether online, in-app, or in-store—is crucial for maintaining customer trust and satisfaction. By providing a unified experience, dealerships can reinforce their brand and build stronger customer relationships. 

A modern CPQ is the answer for a changing vehicle dealership model 

As manufacturers gear up for the challenges of 2024, the quest for solutions addressing high-variance products and customer demands remains paramount for sustained success. In this pursuit, Tacton Configure, Price, Quote (CPQ) stands as a strategic ally.

Building on our proven track record as the industry leading CPQ solution, Tacton empowers manufacturers to efficiently navigate intricate product variations and meet dynamic customer expectations. As the industrial landscape evolves, Tacton continues to be the go-to solution, providing manufacturers with the agility and precision needed to thrive in the complex and demanding market of 2024 and beyond.

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