The Ultimate Guide to Engineering-to-Order Manufacturing

Amidst the escalating trend of personalization, the demand for tailored manufacturing solutions has reached unprecedented levels. However, this shift towards customization poses significant challenges for manufacturers. Traditional advantages of mass production, such as economies of scale and uniform inventory, are compromised.

To address this, a paradigm shift in manufacturing strategy is required – embracing the engineer-to-order approach. This method allows manufacturers to adapt and thrive in an environment where bespoke production is increasingly valued.

Before we go into the benefits and details, let’s start with a simple engineer-to-order definition.

What is Engineer-to-Order?

Engineer-to-order (ETO) refers to a manufacturing approach where products are custom-designed and built to meet the unique specifications of individual customers.

The primary advantage of engineering-to-order is flexibility. It allows manufacturers to develop nearly anything for their customers, giving them a competitive advantage in the marketplace. You can also charge a premium for ETO products, which helps with revenue.

But that flexibility is also a considerable challenge. Each project involves varying materials, components, and manufacturing processes. Standardizing everything in ETO is difficult, so lead times are typically longer than in mass manufacturing.

Other challenges of ETO include more risks and uncertainty (since the project has never been done before), supply chain issues, and quality control.

Because of ETO’s complexity, it often requires a careful approach. For instance, project management is more demanding as you must coordinate different departments like design and manufacturing. The design phase is also longer and involves extensive back-and-forth for approval.

Engineer-to-order examples are often found in industries that require customized solutions, such as construction, aerospace, industrial equipment, and shipbuilding.

The Difference Between Engineer-to-Order and Make-to-Order

Engineer-to-order is often confused with another manufacturing approach, make-to-order (MTO).

MTO is a method where products are only created when a customer places their order. MTO and ETO contrast with Make-to-Stock (MTS), where manufacturing is done to anticipate customer demand.

What separates ETO and MTO is the level of customization involved.

ETO products, as we’ve discussed, are heavily customized. In contrast, MTO goods require little to no customization. Often, any changes are only minor variations of standard or pre-existing designs. 

A good example is a laptop that looks similar to its peers but differs in the underlying specs. Because of this, MTO has a significantly shorter lead time than ETO. In fact, the effectiveness of MTO relies on churning out products quickly to customers.

Inventory management is also different. ETO components are sourced as needed since each project is unique; therefore, inventory usage is minimal. MTO’s limited configuration means it relies more on stocks of standard raw materials.

The Engineer-to-Order Manufacturing Process

Now, let’s go through the steps in a typical ETO workflow.

Specifications and Quoting

The first step in the ETO process starts when a manufacturer gets a request for quote (RFQ) from a client. The client’s aim is to get different price offers from various manufacturers, compare them, and then choose the best one for their project.

An RFQ is a formal request for pricing and detailed information about a specific project or customized solution. RFQs usually contain technical requirements, quality standards, a target budget, and a proposed timeline. 

If a manufacturer thinks it can take on the RFQ, it responds with an initial quote. Here, designers and engineers collaborate on creating a product specification and pricing that fulfill the RFQ’s requirements.

Clients rarely go with the first quote. They often request changes or compromises, which the manufacturer will revise and resend for approval. This back-and-forth process continues until both parties arrive at a final quotation.

Design and Engineering

With a final quote and specification on hand, the manufacturing firm proceeds to flesh out the product design that’s ready for production.

To achieve this, the design team starts with a conceptual product design. Designers create sketches, wireframes, and other initial designs. 

The engineering team is often involved in ensuring the real-world feasibility and safety of the design, addressing specific dimensions, materials, and tolerances. Designers then refine the product drawings to reflect their suggestions.

Computer-aided design (CAD) is also utilized to simulate and validate the design. The team can also send the CAD drawings to the client for feedback and approval.

Process Planning

After the final product design is decided, the next step is to devise a process to implement it. This is where process planning comes in.

Process planning is essential in engineering-to-order due to the distinct nature of each project, requiring the custom design of the entire manufacturing process to align with the project’s unique specifications.

The goal is to design the project’s most efficient and cost-effective production pipeline. It’s also a chance to identify potential issues early so the team can address them. Without this step, you risk creating a product of lower quality and higher cost.  

Process planning begins with a thorough review of the specifications and other relevant details by the production team. Through this, they’ll determine the processes required and the best sequence to execute them.

Part of this step is allocating the right resources to the project. This includes scheduling machine time, staffing, raw materials, and auxiliary services.

Product Concept Confirmation

Before the final product design is transferred to the production team, it is essential to complete a critical confirmation step.

Here, the specifications are reviewed and validated to ensure alignment with the customer’s requirements and expectations. A meeting with the client is often done to clarify any ambiguities and address questions.

The team will also send everything that needs approval. These include the final costs, bill of materials (BOM), projected timeline, and manufacturing process. Changes can be suggested by the client if needed.

Once the client provides the final approval, the production process begins.

Manufacturing

This step is where the rubber meets the road.

First, the workflow devised during the process planning stage will be implemented here. Machines and special equipment are procured, installed, and tested. Then, the fabrication of the individual component begins.

Rigorous quality assurance is also implemented throughout the process to verify that every step meets all specifications and performance requirements. For specific projects, customer acceptance testing (CAT) may be utilized.

The components are then assembled into the final form and tested thoroughly. Finally, the product will be dispatched for delivery to the client.

A dedicated installation team will set up the product and officially hand it over to the client if required. Additionally, training sessions can be organized to help the clients understand how to use and maintain the product effectively.

5 Best Practices to Optimize Your Engineer-to-Order Process

Complexity is a natural part of ETO, meaning work times for projects tend to go over time and budget. However, there are certain best practices you can do to minimize this. Here are some examples:

Establish Open Communication

Open communication is critical for success with engineered-to-order processes. It ensures that your team thoroughly understands the client’s requirements, expectations, and preferences so you can create a perfect product for them.

Collaboration between teams is also required with ETO, and this is something open communication can facilitate. Without it, the product can’t flow smoothly from one step to the next.

There are many ways to implement open communication, but the best way is through having clear communication protocols. For instance, you can require everyone to use project management software to track all the moving parts. Having regular team meetings in person or via Zoom is also helpful to keep the team on the same page.

Use CPQ Software

Engineer-to-order software can streamline the entire engineering-to-order process. One of the most critical in the early stages is CPQ software.

CPQ (Configure, Price, Quote) software like Tacton CPQ streamlines the specification and quoting process. It allows anyone – even non-technical users – to create product specifications, features, and components using a graphical UI.

More importantly, CPQ software automatically generates pricing and quotations from the set product specification. These can be flexible enough to account for discounts, bundle pricing, and other pricing schemes.

CPQ software significantly enhances the efficiency of the planning process. This tool lets sales agents quickly generate precise specifications and pricing details based on a client’s needs, often within just a few hours. This rapid turnaround enables them to secure more deals in a shorter time, thereby boosting the company’s revenue.

Moreover, once the quote is approved, these specifications can be automatically transformed into CAD drawings. These are then seamlessly forwarded to the engineering team, eliminating the need for manual creation and transfer of files, which often leads to errors. This streamlines the entire process, ensuring accuracy and efficiency.

Standardize Procedures

While ETO projects are unique by nature, several aspects of the process can be standardized. This is the secret to making ETO more efficient and cost-friendly.

For example, you can create standardized templates for key project documents such as plans, design specifications, and quality control procedures. Having templates can save you plenty of time when drafting these key documents.

You can also outline standard engineering steps that apply to every engineering-to-order project. For instance, every product would require testing, inventory management, prototyping, and design validation. Creating common SOPs and implementing them across every project you do ensures consistent quality.

Focus on Documentation

Documentation is critical to navigating the complexities of ETO projects. It is a clear reference point for all stakeholders, including engineers, designers, project managers, and the client. Without it, it’s easy for one or two teams to go off completely off-track.

There are many ways to implement adequate documentation.

One strategy is to have a clear version control system to track document changes. Clearly indicating updates to a document can help avoid confusion and eliminate the risk of anyone working on outdated information.

You can also require every team to accomplish and submit progress reports. This document provides task status, achievements, challenges, and upcoming milestones of every person involved in the project. It’s a practice that promotes transparency and helps managers detect potential problems before they arise.

Finally, ensure all documents are located on a cloud-based, centralized repository for easy access.

Track Key Metrics

Metrics are essential for gauging the progress and success of an ETO project. They can also help you see the early signs of trouble so you can course-correct immediately.

For example, the defect rate metric measures the percentage of items produced that are broken to the point of being unusable. Lowering your defect rate requires looking at your production process and equipment.

Another is resource utilization rate, a metric that assesses how efficiently resources (like labor and equipment) are used throughout the project. You want to maximize your utilization rate to keep costs low.

There are dozens of other metrics you can use. What’s important, though, is to adapt those metrics that are relevant to you.

CPQ Software for Engineering with Tacton Systems

As you can see, engineer-to-order projects are some of the most challenging and complex in the manufacturing industry. To succeed, you’ll need to automate some of these complexities so your team can focus on designing and building successful products.

This is where Tacton CPQ software for engineering can help you.

Our system can help streamline some of the most tedious parts of the sales process. Design a product specification, calculate pricing, and generate a professional quote in a fraction of the time.

It’s clear why Tacton stands as the premier CPQ solution in the manufacturing sector, earning the trust of industry giants like Yaskawa, Husky, and Siemens. With a solid 25-year history of innovation, you can rely on us to provide cutting-edge solutions that will enhance the agility and profitability of your manufacturing business.

Want to learn more about Tacton CPQ? Contact us now to schedule a free demo.

How are fully integrated visualization solutions with CPQ changing manufacturing?

Visualization (also known as Visual Configuration, or 3D product configuration) is the combined use of digital technologies (Augmented Reality, 2D and 3D visualization software) to be able to configure products directly in the three-dimensional visual representation. A Visual Configuration software enables your sales team and customers to configure their 3D products quickly and accurately from anywhere. Enabling an integrated visualization solution with CPQ is a step many manufacturers are taking this year. 

What are some visualization benefits?  

• Buyers see with their own eyes how a product they will receive looks like. 
• Customers can understand how product customization decisions (choosing a specific product variant or product option) impact the final product. 
• Companies can highlight unique selling points and special product functions. 

• Further simplifying a complex configuration task by visualizing the different product options and functionalities instead of describing them with text-based descriptions. 
• Companies create trust in their solutions because they use AR (Augmented Reality) to show the configured product in the actual usage environment and customers can immediately check spatial specifications. 

Visualization has been on the minds of manufacturers for the last few years as an addition to their eCommerce initiatives. Many have transformed their selling process by adding real-time visualization, in real environments for their prospects and customers. Visualization has been a major selling point to customers who now grapple with at-home demos and product configurations.  

Different approaches to visualization

Creating a great customer experience that fits seamlessly in your existing technical architecture sounds great doesn’t it? To me it does, but with so many options on the market, it’s important to find a visualization solution that is built to be agile, and maintainable with no surprises in the back end.  

With a push for more visualizations across the manufacturing industry, it can be a lot to learn about the industry. Many manufacturers have a lot of questions about the different options available to them. That’s why we’re here to help discuss two different approaches for adding visualization to your CPQ application, using a 3rd party game or rendering engines and their maintenance workflows or using visualization as an integrated part of the CPQ solution.  

What are game or rendering engines? 

A Game Engine is a software development environment/framework for creating video games or interactive applications. They provide multiple functionalities including a rendering engine (2D/3D), a physics engine, collision detection, an audio engine, a scripting/logic engine, animation, artificial intelligence, user input handling, user interface generation, and networking capabilities. Additionally, they typically provide an editor, tools, and content pipelines to drive and support the game creation process. 

Different Game Engines like Unity or Unreal are focusing on different audiences and target platforms. Not everyone is best suited to create web-based experiences in a browser, while others are not providing the possibility to create native mobile experiences. 

The central part of a Game Engine is the Rendering Engine or Renderer which is responsible for generating the graphical output, turning 3D models, textures, and material descriptions in a visual image on the screen. Instead of using a Renderer as part of a Game Engine, it is possible to use a stand-alone Rendering Engine. Widely used WebGL-Renderer are for example ThreeJS or BabylonJS. 

What are the benefits of using a widespread game or rendering engine? 

• If it is a commercial one or driven by an active community, the development speed for new and improved functionality at a high quality will most likely be superior compared to building and maintaining your own engine with only a few resources. 
• If it is used by many developers and users, good documentation, training, knowledge, and experience will be available in various ways. 

Tacton’s fully integrated visualization solution with CPQ

At Tacton we offer our visualization solution as part of our Configure, Price, Quote solution for a fully integrated creation and maintenance process. We see several benefits of using and maintaining the visualization as an integrated part of the CPQ system compared to a separate 3rd party game or rendering engine. 

A common strategy and aligned roadmap 

When it comes to the two different solutions, they serve the same end purpose, showing your product in a visually appealing, exciting way to sell to customers. The product roadmap is an important aspect of buying any solution, and visualization is no exception. After the purchase of any 3rd party software, like a game engine, buyers are at the mercy of the vendors strategy and roadmap. A game engine is mainly built with a focus on creating games. Bigger Games Engines are opening their target audience but creating and integrating dynamic visuals in a dedicated CPQ system is not among those target use cases.  

So potential needs of a small customer base looking to use the visualization for their highly complex product configurators are typically not the highest-ranked priorities on the roadmap. With Tacton visualization we make sure to consider our customers unique needs when it comes to changes, improvements, or new functionality to support their workflows and use cases the best way.  

Even if you only want to use a small part of a Game Engine, as the 3D Engine, you must use the complete tool pipeline and process designed by the vendor. Once you are in the solution, there is no way out. For example, it is not possible to only use the included 3D Engine but build your own tooling around it. Tacton’s visualization is already tailored to the needs and requirements around extending the configuration process with visualization. 

A complimentary maintenance experience 

Mapping a configuration to visualization is not as straightforward with an external maintenance workflow compared to an integrated one. For example, the wording is with no relation to the configuration at all, making you learn and map every domain and requirement. And only using the rendering functionalities of a game engine leads to excessive parts that users can’t get rid of, so they must navigate their way around it.  

Especially for the major Game Engines, learning the necessary essentials and mastering all the tools and processes is quite a challenge if 3D Game development is not your main occupation. Creating tailored solutions specifically in the area of visualization can reduce ramp-up time and speed up the learning curve since the use case and the users are much narrower compared to a general Game Engine with multi-purposes.  

And if one of the goals and values of your solutions is that customers/manufacturers should be able to maintain and extend the visualization part on their own, it is not very convenient if the customers/manufacturers must buy and learn those 3rd party tools and processes as a mandatory component. This makes it much harder and complex to transfer the responsibility after the initial setup. 

Tacton’s integrated visualization solution is designed to perfectly align and match with the bigger goal of enhancing a configurator with visualization with the least necessary friction in the process. The visualization builds on top of existing knowledge and workflows in CPQ, minimizing ramp-up time, making it one integrated experience. 

Out-of-the-box integration to CPQ 

When using a 3rd party visualization for a CPQ + visualization project, it is not one standard product that is offered. It will always be two products (from two vendors) + an integration between what is offered. This integration needs to be maintained and adjusted as well over time since interfaces are likely going to change. 

With Tacton it’s one platform, everything out-of-the-box and everything developed and improved together ensuring a working solution all the time with no additional efforts. 

One approach for all use cases 

Depending on the use cases and related platforms you like to support with your Visualization solution, it is quite hard to find only one engine to support all of them in the best way. Web-focused engines have a hard time utilizing the full power of native platforms and engines with a native-first approach struggle more when used in web-based scenarios.  

Supporting native mobile apps as best as possible on top makes it even more complex to find a proper engine. Most Game Engines and Rendering Engines with a focus on the web need supporting technologies to run natively on desktop or mobile devices, reducing the benefits of running natively. If you are not able to solve all use cases with one engine, the complexity of the tech stack and all workflows and tools around it is increasing quite drastically.  

With Tacton’s own visualization, we are able to support all our customers use cases out-of-the-box with the same approach and workflows. You do not need to add additional tools or processes to support web and mobile. 

An integrated visualization solution with CPQ can be your next big win

Visualization is a complex topic, with so many different options for success it can be difficult to pick one that is right for your business. If you’re in the manufacturing industry, it’s important to work with providers who have experience in the field. At Tacton we’ve got over 20 years of visualization experience, specifically for manufacturing. Learn more by scheduling your personalized visualization demo! 

What is Price Optimization and Why is it Important?

In the vast realm of manufacturing, many tools and frameworks exist to address nearly every challenge. From enterprise resource planning (ERP) systems to lean methodologies aimed at minimizing waste, a plethora of resources are readily available. Yet, despite these technological strides, manufacturers grapple with a persistent dilemma: determining the optimal pricing for their products.

With so many variables at play, choosing a price point that makes a product appealing while maintaining adequate margins is tough. That’s where product price optimization enters the fold. But what is price optimization exactly, and more importantly, how do you use this technique to assign the right dollar amount to your products?

In our deep dive into price optimization, we unravel all the essentials about pricing. This includes examining prevalent models, understanding the advantages of pinpointing the perfect price for your products, and guiding you in crafting and implementing an effective optimization strategy.

What is Price Optimization?

Price optimization is the strategic process of setting the right price for your products to optimize profitability. It’s not just about assigning an arbitrary number to your products — it’s a data-driven approach that considers various factors to find the sweet spot where your bottom line is flourishing and your customers are happy. Pricing optimization leaves everyone walking away, feeling as if they got a fair deal. 

Setting a perfect price point is difficult due to the number of variables at play. It is particularly challenging for manufacturers, as you must account for factors like raw materials, upstream and downstream shipping costs, warehousing fees, labor expenses, etc. 

Price optimization for retail can be equally complex. However, retailers enjoy more pricing flexibility, as they can track trends across individual sales, whereas manufacturers almost always sell in bulk shipments.

If a retailer notices that their margins are slightly off after a few dozen transactions, they can make adjustments with minimal impact on the company’s bottom line. On the other hand, if you underprice a shipment with 10,000 units, the effect on your margins will be severe. That’s why you need to master the art of price optimization.

Price Optimization Models

There are dozens of different price optimization models out there. While each has its share of pros and cons, they all have one thing in common. Pricing models require high-quality data to yield accurate results. The more reliable, accurate data you have, the better. 

With that in mind, here is a brief overview of a few different models to consider. There are several other models within the three frameworks outlined below. You should explore them in greater detail to find the pricing optimization option that best aligns with your organization’s needs.

Black Box Solutions

Black Box AI represents a traditional approach to AI, in which systems process data and produce recommendations. The challenge with these systems is their lack of transparency; they don’t reveal the underlying logic behind their conclusions, making it difficult to validate their results.

Simple Rules Engines

Despite the name, simple rules engines can be surprisingly challenging to manage. In this model, you establish a series of overarching guidelines, and the algorithm uses these to suggest a retail price. Yet, as you introduce additional rules, which may sometimes contradict one another, the system’s reliability diminishes.

Price Optimization Solutions and Human Input

The new-school approach to price optimization involves pairing an AI-powered price optimization tool with human intuition. The tool helps narrow your focus by providing detailed pricing guidance, but your team can also incorporate difficult-to-quantify variables into your decision-making. 

Many brands prefer this option, as it provides optimal pricing control while yielding real-time data-driven insights.

Benefits of Price Optimization in Manufacturing

Investing in price optimization tools will unlock a wide range of benefits for your manufacturing business.

Increase Profits

When done right, price optimization is your golden ticket to increased profits. It is about finding that equilibrium where your prices are competitive and your margins are healthy. 

Price optimization isn’t merely about pricing lower than your competitors to boost sales. If your product costs more to produce or boasts superior quality, its price should reflect that. Price optimization aids in finding that sweet spot, ensuring you achieve sustainable per-unit profits while offering exceptional value to your customers.

Attract New Customers

Consumers are inundated with choices, so pricing matters above almost everything else. Optimal pricing keeps your existing customers happy and helps attract new ones. 

Your products become more appealing when potential customers see they’re getting the best bang for their buck. Pricing optimization is particularly beneficial if you’re trying to break into new markets, as prospects won’t know much about your brand other than the price tag on your products. 

Customer Retention

Happy customers are repeat customers. If you want to keep wholesale distributors and retailers coming back again and again after their first purchase, you need to nail your product pricing. 

Customers who feel they’re getting a fair deal are more likely to stick around. On that note, you can also use pricing optimization tools to set volume-based discounts. A great platform will help you determine what thresholds should be eligible for a discount and how much you should knock off the price tag.

Save Time and Money

Time is money, and price optimization solutions save you both. You’ll no longer need to worry about guesswork or endless debates over what price tag you should assign to your products. 

Even if you use a hybrid model involving human input and AI, your pricing tools will be a great starting point for your discussions. You can quickly determine whether the platform’s recommended price makes sense for your product and come to an agreement that makes sense for everyone. 

Step-by-Step Guide to Price Optimization

Understanding the concept of price optimization demystifies this essential business process. However, what’s the use of this knowledge if you can’t put it into practice? Fortunately, implementing a pricing optimization strategy is far easier than you might expect. All you need to do is:

Define Your Pricing Objectives

First, ask yourself what you want to achieve with your new pricing strategy. Having a roadmap is crucial, whether your goal is to boost profits, expand market share, or enhance customer loyalty.

If you are still trying to figure out where to start, consider working backward from a problem you face. For instance, if you fell short of revenue goals last quarter, consider how pricing optimization could help you overcome this challenge. Build your objective around realizing that solution. 

Gather Data

Data is the key to successful price optimization. Whether you use a simple rules-based solution or an advanced algorithm, you will need tons of high-quality data. To build your dataset, you’ll need to collect data about consumer behavior, market demand, competitor pricing, costs of goods sold (COGS), and more. 

If it is a factor that impacts your costs or customers’ willingness to buy, you need to learn all you can about it. Overlooking even a single variable can throw off your entire pricing model and lead to an expensive mishap. 

Segment Your Customer Base

Once you have set some objectives and gathered abundant data, it’s time to segment your customer base. Segment your audience based on factors like location, industry, interest, and behavior. While audience segmentation is a common practice in the business-to-consumer (B2C) space, it is also highly effective for manufacturers in the business-to-business (B2B) ecosystem.

Dividing your customer base into segments will also be invaluable to your marketing strategy. But for pricing optimization purposes, it helps you understand which clients you need to appeal to with your new price point. 

Analyze Market Dynamics

Imagine attempting a new sport without understanding its rules. Not analyzing your market’s dynamics is akin to that very misstep.

You need to understand the market you are playing in, including what trends have emerged and how staunch the competition is. If you are operating in a saturated market, you need to showcase the value of your products while setting a competitive price. Don’t feel like you need to beat everyone else’s price, but you don’t want to be the most expensive option out there, either. 

Choose the Right Price Optimization Model

Choose a pricing model that makes sense for your products based on your objectives and the data you gather. You can use a value-based or cost-plus pricing model. 

If your market is volatile, you may need a dynamic, agile pricing model that is easy to adjust. While dynamic pricing requires more frequent analysis, it allows you to adapt to shifting market conditions. 

Furthermore, it’s essential to remember that no single pricing model fits all scenarios. Regularly reviewing and adjusting your pricing strategy based on real-time feedback and market trends will keep your business competitive. Embrace technology and data analytics to make informed decisions, ensuring that your pricing remains both profitable and appealing to your target audience.

Implement Pricing Optimization Software

Running calculations manually just won’t cut it in the digital age. Invest in cutting-edge pricing optimization software to automate the data collection, analysis, and visualization process. Doing so will save you time and reduce the likelihood of human error.

When it comes to pricing optimization solutions, find a platform that accommodates multiple models. Just because the cost-plus model works for you today doesn’t mean it will be the best option a year from now. Choose a platform that can scale and adapt as your needs change to maintain your competitive edge. 

Incorporate Price Optimization Techniques

Even with the latest tools at your disposal, price optimization is still not an exact science. This is primarily due to the ever-changing conditions facing manufacturers. To keep your pricing optimal, you must continuously adjust it using various techniques. 

The best way to determine whether you choose the right price is to test it with your target audience. Use A/B testing, bundling, or discounts to fine-tune your pricing strategy. Through experimentation, you can discover what resonates with your audience and nurture feelings of loyalty toward your business.

Test and Adjust

Continuously test and adjust based on customer response, market changes, and new data. Flexibility is your greatest ally in pricing optimization.

While there is no hard and fast rule regarding how often you should adjust your pricing, you should at least reevaluate it every month. A lot can change in a week, much less a month. Routinely evaluating your pricing will help you determine when to make a change. 

Monitor Competitor Pricing

Keep a close eye on what your competitors are up to. Understanding their pricing strategies will help you stay agile and maintain a competitive edge. 

If one of your top competitors suddenly changes its pricing, try to figure out why. Is a material shortage looming, or did it incur a new internal cost? Determining the “why” behind the actions of the competition can help you stay one step ahead of everyone in terms of pricing.

Measure and Evaluate

Numbers don’t lie. Regularly measure and evaluate the performance of your pricing strategy against your defined objectives. Is your pricing pushing you toward those goals, or do you need to pull a few more levers to achieve what you set out to accomplish? 

Measuring, evaluating, and modifying your pricing is a cyclical process. It helps you stay on track and make informed adjustments as needed. 

The Power of Pricing Optimization Software for Manufacturers

Pricing optimization is critical to maintaining healthy margins and protecting your cash cycle. With so much riding on product pricing optimization, do you really want to settle for anything less than the best tools available? Of course, you don’t! That’s why you should adopt Tacton’s pricing optimization solution, CPQ Pricing. 

With Tacton CPQ Pricing, you can create custom pricing models that align with the complexities of manufacturing industries. The platform reduces downstream margin degradation concerns, offers flexible tools that can adapt to dozens of models, and offers instant pricing for each of your custom configurations. 

Achieve new levels of success in the rapidly changing manufacturing environment with Tacton CPQ.

Book a demo today to learn more.

In today’s digital age, global manufacturers stand at the crossroads of traditional business methods and transformative technology-driven processes. The stakes have never been higher, as data becomes the very lifeblood of business operations. One term often thrown around in boardrooms and strategy meetings is “Business Intelligence.” This guide explores the various advantages of business intelligence and underscores the central significance of CPQ analytics in harnessing its full potential.

What is Business Intelligence?

This is more than just a question—it’s a doorway to understanding a transformative tool for businesses. At its core, business intelligence (BI) refers to the technologies, processes, and tools that help convert vast raw data into meaningful information. An example of business intelligence in action might involve harnessing these tools to discern a pattern from past sales data, allowing you to forecast future demand. When interpreted correctly, this information can help businesses make informed decisions, predict market trends, and understand customer behavior.

Benefits of Business Intelligence

Business intelligence isn’t just a buzzword – it’s the linchpin for countless successful businesses across the globe. Companies of every size and structure leverage BI to gain a competitive edge, streamline operations, and improve decision-making. Let’s delve deeper into the extensive benefits that business intelligence brings to the table.

Informs Business Decisions

One might wonder, what is business intelligence‘s most compelling attribute? At its heart, BI is a decision-maker’s best friend. Traditional methods of making business decisions, often based on gut feelings or outdated reports, are risky. In contrast, BI allows for decisions grounded in fresh, actionable data.

With a comprehensive business intelligence system, a company can keep its finger on the pulse of fluctuating market dynamics and reap countless business intelligence benefits. This includes tracking changes in customer behavior, emerging market trends, and competitive landscapes. For instance, if a competitor launches a new marketing campaign or a product, BI tools can help gauge its impact and enable businesses to respond proactively.

Ensures Accurate Reporting

In the past, businesses relied heavily on manual reporting, which was time-consuming and prone to errors. The introduction of BI tools has revolutionized this aspect. These tools ensure data is fetched directly from reliable sources, processed accurately, and presented in understandable formats such as dashboards, charts, and graphs.

An efficient system for business intelligence automates the data aggregation process, reducing the likelihood of inaccuracies or misinterpretations. Companies can then be confident in the knowledge they use for strategic planning, ensuring it’s current and accurate.

Provides Business Insights

At its core, BI is about harnessing the power of data to unearth gems of insights. Beyond the surface level of metrics and key performance indicators, BI tools can closely examine data, highlighting correlations and patterns that might otherwise go unnoticed.

For instance, through BI analytics, a retailer might discover that sales of a particular product spike during specific times of the year or that a certain demographic is more likely to purchase after viewing a targeted ad. Such insights are invaluable for formulating targeted marketing strategies or optimizing inventory management.

Improves Customer Satisfaction

The saying goes that a happy customer is a loyal customer. With BI tools, companies can gain deeper insights into their customer’s journey. From the initial interaction to post-purchase feedback, every touchpoint offers a wealth of data.

By analyzing this data, businesses can identify areas of friction in the customer journey and work on rectifying them. This might mean streamlining the checkout process on an e-commerce platform or optimizing response times in customer support channels. Over time, these enhancements lead to higher customer satisfaction, fostering brand loyalty.

Enhances Productivity

Time is an invaluable resource in the business world. With BI tools, repetitive and time-consuming tasks such as data entry, report generation, and basic analysis can be automated. This means employees can redirect their focus from mundane tasks to more strategic, value-driven activities.

For instance, a sales team armed with real-time data on customer preferences can tailor their pitches more effectively, leading to higher conversion rates. Similarly, a marketing team with access to real-time campaign analytics can pivot their strategies on the go, ensuring optimal ROI.

Improves Data Quality

Dirty data, characterized by inaccuracies, inconsistencies, and duplications, can impede effective decision-making. Fortunately, many BI tools come equipped with features that clean and standardize data before it’s used for analysis. By ensuring that only high-quality, clean data enters the BI system, businesses can be more confident in the insights they derive.

Identifies Opportunities

In the dynamic world of business, opportunities can emerge from the most unexpected quarters. A robust BI system is like a constant radar scan, identifying potential areas for growth or innovation. This might mean spotting an untapped market segment, recognizing the potential for a new product, or even identifying acquisition opportunities.

With real-time data and predictive analytics, businesses can identify and act on these opportunities swiftly, staying ahead of their competitors.

Best Practices for Implementing Business Intelligence

The benefits of BI are clear, but how does one implement business intelligence effectively?

1. Setting Clear Objectives: Start with the end in mind. Define what you hope to achieve with BI, whether it’s boosting sales, improving customer satisfaction, or optimizing operations.
2. Ensuring Data Quality: As emphasized, the foundation of effective BI is quality data. This means not only cleaning data but also ensuring consistent and reliable sources.
3. Providing Training to Staff: BI tools are only as good as the people using them. Invest in training programs to ensure that your staff can harness the full potential of your BI system.
4. Continuously Updating and Maintaining the BI System: A BI platform requires regular maintenance and updates like any other IT system. This ensures it remains compatible with other systems and can handle evolving data needs.
5. Using CPQ Software: Enhance your BI efforts with tools like CPQ software from Tacton. Especially for businesses involved in sales, CPQ software can provide invaluable insights, further enriching your BI data pool.

In summary, the path to effective BI is multifaceted. It involves the right tools, a strategic approach, continual learning, and adaptation.

Why Business Intelligence is Enhanced by CPQ Analytics?

In the ever-evolving global business landscape, CPQ analytics and business intelligence amalgamation is becoming increasingly pertinent. These tools offer significant advantages, and their integration can significantly enhance a business’s operational efficiency, customer satisfaction, and profitability. But before diving deeper, it’s essential to understand the inherent value of CPQ.

CPQ isn’t just another acronym in the vast sea of business terminologies. It’s a transformative tool that assists companies, primarily global manufacturers, in navigating the intricate process of product configuration, pricing adjustments, and quote generation. As global markets become more complex and customer demands more nuanced, the need for efficient CPQ solutions becomes more pressing.

Now, imagine combining the power of CPQ with business intelligence. This fusion brings forth a synergistic effect, optimizing various business processes. Let’s delve deeper into these advantages:

Streamlined Operations

Integrating CPQ with core business systems like CRM (Customer Relationship Management) and ERP (Enterprise Resource Planning) creates a holistic ecosystem. This integration ensures the seamless transfer of vital data across departments. For instance, once a sales representative configures a product for a client, the inventory department can immediately get insights into required parts, ensuring no delay in order fulfillment. Such smooth operations reduce internal bottlenecks and improve overall efficiency.

Customer-Centric Approach

Modern consumers expect personalization. They desire products and services tailored to their unique needs. CPQ tools, with their ability to configure customized product offerings, cater to this exact demand. By analyzing historical customer data, preferences, and feedback, businesses can proactively offer solutions even before a customer expresses a need. This proactive approach fosters loyalty and positions a company as a brand that truly understands and values its customers.

Enhance Product Configuration

Global markets are diverse. A product configuration that works in one region might not be suitable for another due to cultural, regulatory, or logistical reasons. Global manufacturers can use CPQ tools to adapt their offerings for different markets without reinventing the wheel each time. This flexibility ensures that businesses remain agile and responsive to regional market dynamics.

Optimized Pricing Strategies

Pricing isn’t a static element. Various factors, including competition, demand-supply dynamics, currency fluctuations, and regional policies influence it. CPQ analytics provide insights into all these elements, allowing businesses to adjust their pricing strategies in real time. This proactive approach ensures that a company remains competitive, maximizes its profit margins, and addresses the local market’s pricing expectations.

Quicker Quoting Process

The traditional quoting process was riddled with delays. Manual calculations, approvals, and revisions meant customers had to wait for extended periods before getting a finalized quote. With CPQ tools, this process is revolutionized. Automated calculations, predefined templates, and instant approvals mean that quotes can be generated in mere minutes. A swift quoting process enhances customer satisfaction and gives a company a competitive edge.

Improved Sales Performance

Informed sales representatives perform better. With insights from CPQ analytics at their fingertips, sales teams can prioritize leads with higher conversion potential. They can tailor their pitches, offer real-time product configurations, and provide instant quotes, enhancing the overall sales experience. An informed sales process, backed by real-time data, improves conversion rates and enhances customer trust.

Data-Driven Decisions

What is business intelligence, if not the capability to make informed decisions? By coupling CPQ analytics with BI tools, businesses ensure that their decisions are grounded in accurate, real-time data. Whether launching a new product, entering a new market, or adjusting pricing strategies, every decision becomes more strategic and outcome-focused.

Modern businesses find momentum at the intersection of CPQ analytics and business intelligence. As global markets become more intertwined and competitive, tools that optimize operations, enhance customer experiences, and ensure data-driven strategies become indispensable. Companies that leverage the combined power of CPQ and BI are not only poised for success but also equipped to navigate the complex tapestry of global business with agility and foresight.

Boost Business Intelligence with Tacton

As the world of manufacturing gets increasingly complex, having the right tools becomes indispensable. Tacton stands out as the top choice to solve complications and challenges global manufacturers face today. Not only does it seamlessly integrate with existing systems, but its robust CPQ software ensures businesses are always a step ahead in their decision-making processes.

In conclusion, understanding and leveraging business intelligence can be a game-changer. Coupling BI with CPQ analytics, especially tools like those offered by Tacton, ensures businesses survive and thrive in today’s competitive landscape. 

Ready to elevate your game? Dive into the future of business intelligence with Tacton now!

 

As a business leader, you know that keeping track of your data is critical to running your business smoothly and reaching your strategic goals. However, if you’re like most, you’re trying to juggle multiple spreadsheets and documents from different departments with varying data collection, update, and storage processes. 

While doing things this way may work for smaller businesses, it rarely remains viable for growing enterprises. What’s the fix for this often frustrating way of doing things? It may be time to look into an ERP system. 

What does ERP stand for in business? It’s an acronym for Enterprise Resource Planning System. Far from simple business management software, this solution integrates all parts of your business and helps everyone work together toward the same goal using the same critical information. 

If you’re interested in learning more about what an ERP is and the benefits and challenges associated with using one, this guide is for you.

What is ERP and How Does it Work?

Simply put, ERP is business software that combines every aspect of an organization to make data and insights available for widespread usage. While the idea of an enterprise resource management solution may sound grand, it is a complex system comprising many moving parts. 

Read on to discover more about what an ERP is, the components that make it work, and the deployment models that allow businesses to take full advantage of its features.

Enterprise Resource Planning, Explained

In a typical enterprise, data is usually created in silos. Different departments maintain their systems and processes for creating, storing, and analyzing data. Some use spreadsheets, while others use business management software, but no one can freely access anyone else’s data. 

That eventually becomes a problem as everyone works with and makes decisions based on different information. Stakeholders waste time hunting down the correct data, bringing collaboration and productivity to a grinding halt. Trust also becomes hard to come by, as governance and leadership teams have yet to learn how the data they receive is generated or manipulated.

An Enterprise Resource Planning System seeks to solve this problem through automation. ERPs create a central source of truth through a database that pulls information from accounting, manufacturing, supply chain management, sales, marketing, human resources, and more. 

The result is that every department has visibility into the data they need with no conflicting information holding up decision-making. It also allows you to analyze that data to discover insights and opportunities for cost-savings and better productivity.

ERP Modules

You may wonder, “What is ERP, and how does it work?” Knowing that an ERP system does not integrate different applications is essential. Instead, it is one application that offers 13 different modules. These modules all pertain to and are customized for various departments or business functions, including the following: 

• Finance: Manages all financial data and processes, including the general ledger, AR/AP transactions, reconciliation, and financial reporting
• Procurement: Manages all purchasing tasks to minimize over and underbuy
• Manufacturing: Monitors and coordinates the process, linking it to consumer demand
• Inventory Management: Displays and updates inventory levels in real-time, measuring metrics and helping to keep the right amount of stock on hand 
• Order Management: Tracks and prioritizes customer orders 
• Warehouse Management: Directs receiving, picking, packing, and shipping, identifying inefficiencies within each
• Supply Chain Management: Helps with the planning and coordination of sourcing and manufacturing based on customer demand data
• Customer Relationship Management (CRM): Stores and tracks information about customer service and lead management
• Project Management / Project Service Resource Management: Usually used in services businesses to track projects and the resources used on each of them
• Workforce Management: Tracks attendance, hours worked, and payroll down to the individual employee level
• Human Resources Management: Creates and stores employee records and provides workforce trend data
• E-Commerce: Updates product pages and manages front and backends of the online business
• Marketing Automation: Manages email, web, and social media marketing to personalize messaging and optimize all promotional material

In most configurations, business leaders can choose which modules benefit them most and customize each to meet specific needs.

Types of ERP Deployment Methods

ERP solutions, just like any other type of modern software, can be deployed in various ways depending on the needs of your enterprise. 

On-Premises

Perfect for businesses with their own IT staff, this model requires the company to host the application and all necessary infrastructure on campus. The business is responsible for all server maintenance, security, and application updates.

Hosted Cloud

With a hosted cloud solution, a company purchases a license to use the software but hosts it on remote third-party servers rented from a hosting company. Data is stored in a private cloud on single-tenant servers. That gives clients maximum control but is more challenging to manage than a proper cloud solution.

True Cloud

How do ERP systems work when deployed exclusively in the cloud? Like a SaaS model, businesses pay a fee to use the software while the vendor manages everything else. Consequently, this arrangement doesn’t require assistance from an in-house IT team. Unlike hosted cloud deployments, cloud configurations are usually multi-tenant.

Hybrid

Hybrid deployment is a mix of on-premises and cloud solutions. Some companies deploy their hybrid solution with an on-premises model at the corporate headquarters and use the cloud for subsidiaries worldwide. Others use on-premises for specific functions while using the cloud for others. With this model, companies must find a way to link the on-premises and cloud solutions so that information doesn’t get lost.

Open Source

Open source deployments allow companies to use ERP software free of cost, only paying for cloud hosting when needed. The trade-off is that support is minimal, and installation, configuration, and customization are entirely up to business leaders. Working with open-source software often requires IT staff with software development expertise to ensure it operates properly.

Benefits of ERP Management Systems

ERP applications seek to provide businesses with the data management and analysis tools needed to drive improvements in every area of the enterprise. Here’s how the robust features of these types of applications can benefit a business and its stakeholders.

Improve Company Insight

An ERP management system can pull all types of data from across the organization. Because the system acts as a central source of truth, governance and leadership teams can always rest assured that the information they have in hand has been updated in real time. 

Not only does this provide unmatched visibility into the level of productivity and performance in each department, but it also allows company leaders to aggregate, slice, and analyze data in various ways to uncover trends, opportunities, and areas needing improvement. In this way, accessing all necessary data through a central source of truth that ERP systems provide leads to better decision-making throughout the enterprise.

Lowers Operational Cost

Simply put, manual processes are expensive. Not only do they cost the company time by cutting into employee efficiency, but doing things this way also costs money as the business has to hire more people to achieve an acceptable productivity level. Fortunately, ERP systems make these high operational costs a thing of the past.

An ERP application automates processes so employees do less repetitive tasks and focus more on the meaningful work that moves them closer to their goals. These applications also make it easier to spot and eliminate inefficiencies and errors that could drive up costs for the company.

Encourages Collaboration

Research shows that effective collaboration in the workplace can increase innovation and sales by nearly 30%. Employees across the organization are more effective when they can work together and share information. 

What is an ERP if not a means to encourage and facilitate collaboration between departments? These solutions get the job done by busting data silos and giving teams appropriate access to the information they need to make sound decisions. 

For example, a product development team can access information about customer complaints to help them decide what features to add or alter. HR managers can access performance review data to make workforce planning decisions.

Improves Inefficiency

When different teams operate independently, it creates redundancies and inefficient processes that waste precious resources. Locating and asking for spreadsheets and other documents and cross-referencing data to find the correct and most up-to-date information is time-consuming and contributes to an inefficient workflow.

An ERP system can help the business correct these inefficiencies by giving authorized parties self-service access to a central source of truth. It eliminates the need to track down or reconcile records, leaving more time for teams to focus on the tasks that drive business growth.

Provides Infrastructure

Your digital infrastructure is the foundation of your business. It is what connects internal and external stakeholders, automates systems and processes, and provides your business with the resources to grow and thrive. It supports and powers every part of your business.

ERP systems play a significant role in your digital infrastructure, facilitating the accurate and efficient movement of data throughout your organization. It allows leadership teams to detect business needs and respond quickly. These systems seamlessly integrate all parts of the business, ensuring employees have the information and documentation necessary to do their jobs correctly.

Improves User Adoption Rates

When your organization’s leadership teams decide to adopt an ERP system, everyone from the executive team to the customer service representatives must be on board with the change. Without widespread adoption, stakeholders will not be able to have a consistently updated central source of truth for business data.

ERP systems improve user adoption rates because most teams recognize the benefits these applications bring to the organization. Because you can tailor modules to each department, employees generally find them easy to use and integrate within existing workflows, increasing the likelihood of immediate adoption.

Reduces Risk

Many business leaders don’t realize that working with outdated and inaccurate data is risky. If you are making decisions for the business based on the wrong information, you risk wasting resources and missing out on growth opportunities. 

In some cases, having the wrong information can lead to compliance issues. Not only does this open your organization to fines and penalties, but it can also result in business shutdowns and loss of customer trust. An ERP system that keeps information up-to-date and reduces errors by automating processes helps eliminate these compliance risks and ensures the business stays clear with regulatory agencies.

Challenges of ERP Solutions

Now that you know “what is an ERP and how does it work,” it’s time to disclose some operational setbacks. As beneficial as the software may be, ERP business processes come with their fair share of challenges. From figuring out costs and customization needs to working out the details of data migration and security compliances, there are many issues your team will likely have to overcome when adopting a new ERP for your organization. 

Read on to discover common problems and how your teams can work together to overcome them.

Cost of implementation

The software was extremely expensive to purchase and update early in the development of ERP systems. That often meant that only large corporations could use and benefit from these platforms. 

However, technological advancements and the adoption of cloud options have made pricing much more accessible to companies of all sizes. Those who want to save are far better off choosing cloud deployment and allowing a third-party vendor to take care of maintenance, updates, and security.

It’s also essential for leadership teams to think about the cost savings they’ll enjoy simply by using an ERP system in their business. Achieving greater efficiency and productivity and eliminating data errors will likely save your enterprise a significant amount of money, further driving down the cost of the software.

Data Migration and Integration

Many ERPs use data formats that are compatible with the specific platform. That makes it highly likely that some of your data will have to be converted into a version your chosen ERP platform can use. If you’re already using other business management platforms, each team will need to migrate their data to the new ERP platform and integrate it so that the central database can access it. 

With any data migration project comes the risk of data loss, corruption, duplication, and inconsistencies. If you don’t correctly handle the files, it can be devastating. If your chosen software vendor offers data migration assistance, allow them to at least participate in the process to minimize the chances of issues occurring.

Customization Complexity

Today’s robust ERP applications offer hundreds of customizations to ensure your enterprise can integrate the solution into your everyday workflows. However, you must realize that these custom features add to the complexity of the software. While modern systems are far easier to use than their legacy counterparts, recognize that new and complex systems can still be challenging for employees to navigate.

To combat this issue, limit customizations to only what your employees need to maximize productivity and efficiency. Furthermore, give each employee access to only the modules, dashboards, and information required so you can keep confusion to a minimum. Finally, include adequate training in your ERP rollout plans to ease employees’ concerns about using the software.

Vendor Lock-In

Vendor lock-in happens when you depend on one ERP vendor for all your business management software needs. You must keep paying for the product because switching to another vendor would be too cumbersome. That isn’t good for any business because it limits your ability to obtain better pricing or features elsewhere.

The best way to avoid this issue is to thoroughly evaluate your options and choose a vendor that offers maximum flexibility. The software should integrate with other applications, and the vendor should provide a clear exit strategy for those who decide to leave. If you lose functionality when you customize your software or migrate data elsewhere, look for a different solution.

Scalability Issues

Some ERP systems face performance issues when you attempt to increase the number of users or the amount of data within the system. On-premises deployments can be especially vulnerable to these scalability problems, especially if your existing infrastructure cannot handle the increased workload.

Before you implement an ERP solution, make sure that you meet with your IT manager to discuss both current and future software needs so you can adequately plan for scaling needs. Consider a hybrid or true cloud deployment, as they often make scaling much easier and quicker. 

Security Concerns

You must ensure your ERP security is airtight if you handle sensitive customer data. Otherwise, you may face fines and penalties due to a lack of compliance and run the risk of a data breach. 

To combat common security issues, your IT team must have data access controls and a data governance plan for your ERP application. Try to limit customizations and integrations that may result in additional vulnerabilities. Train your employees on password hygiene best practices and multi-factor authentication, and monitor your system using cybersecurity software. 

It may seem cumbersome now, but doing these things will provide better protection.

Training and User Adoption

You must find a way to provide your employees with extensive training on the new ERP platform. Often, cloud-based software companies can do this for you. If not, your in-house IT manager or team must handle it. 

The better your training and the more modern your software, the easier it will be to get employees and teams on board with using it. Ensure you provide ongoing support to employees as they adopt the new system to reduce frustration and increase the likelihood of total buy-in.

Maintenance Updates

Regular ERP application maintenance and updates are vital. Not only does this ensure the continuity of security features as new patches are released, but it’s critical for maximum performance and access to new software features. 

If you choose an on-premises deployment, application maintenance and updates will be your responsibility. If you don’t have an in-house IT team who can dedicate time to maintaining your ERP system, opt for a cloud solution so you can offload this task to a third-party vendor. With this solution, your maintenance costs are usually baked into your monthly or yearly subscription fee, so there’s no need to worry about paying extra.

Performance Bottlenecks

ERPs are powerful tools, but the sheer scope of the software can sometimes mean that it runs slow or faces performance issues. If you use a cloud-based ERP solution, the product vendor will need to help you solve performance issues, as they control nearly every aspect of the infrastructure required to run the application. 

If you are using an on-premises setup, your IT team must take on the responsibility of identifying the source of the problem and figuring out whether it’s a hardware, software, network, data, or user behavior issue. Your team will then have to decide on and implement an appropriate solution, evaluate results, and optimize the system so the problem doesn’t happen again.

Optimize quotes in CPQ with data from ERP

ERP and supply chain management systems holds data about stock levels, delivery times and currency factors. These data can be important when building an optimal deal for a customer in CPQ, for instance avoiding parts with long lead times. With Tacton CPQ’s API for Product Modeling any business-critical parameter from your ERP or SCM can be pulled into your product model in Tacton CPQ, driving the selection of products variants based on customer’s purchasing drivers. By connecting supply chain with CPQ, your order fulfillment organization is better positioned to deliver on the promises in the quote.

Simplify Manufacturing Challenges with Tacton

Making the best use of Enterprise Resource Planning applications is about automating and simplifying processes so that every stakeholder in the organization has access to the necessary resources to make good decisions that move the company forward. That is the goal behind Tacton’s Configure-Price-Quote (CPQ) software.

Tacton’s revolutionary solution breaks internal silos and secures profitability by considering all aspects of the product journey upfront during the quote process, including customer needs, sales channels, compliance, fulfillment, and serviceability. That allows Tacton’s CPQ software to provide product configurations that yield accurate quotes for each product variant without involving another team.

Best of all, Tacton’s CPQ software integrates seamlessly with your existing ERP solution, ensuring sales, order fulfillment, and every other team in your organization can make decisions based on up-to-the-minute data. You can ease internal frustration, reduce manufacturing errors, and elevate the customer experience by connecting your customer service, sales, and engineering divisions for better data governance.

With these features, it’s no wonder that Tacton Systems CPQ solution is the top choice to help solve complications and issues facing global manufacturers today.

 

 

Empowering sustainable manufacturing begins with new solutions

Over the last decade many businesses have put a major emphasis on sustainability, these diverse companies have actively pursued strategies to minimize their environmental impact. Manufacturing is no different, and the industry is responsible for a large share of global CO2 emissions.  

However, thanks to technological advancements and innovative solutions, companies now have the means to integrate sustainability into their operations. At Tacton our latest innovation, Environmental Footprint Configuration, is doing just that.  

Let’s explore the capabilities and benefits of Tacton’s Environmental Footprint Configuration and how it is revolutionizing sustainable manufacturing. 

Understanding Environmental Footprint Configuration: 

Environmental Footprint Configuration helps manufacturers configure products using data sourced through life cycle assessment (LCA) software. Leveraging LCA information usually requires manual work from experts, taking several days for just one configuration. 

With the new integration to LCA software this calculation is automated and can result in significant cost savings. Tacton is purpose-built to integrate seamlessly with any LCA data sources. Incorporating Tacton CPQ with Environmental Footprint Configuration will help customers make informed choices that will help reduce their footprint. 

Tacton CPQ empowers manufacturers by providing them with extensive emissions data encompassing Scope 1, 2, and 3 emissions, leveraging LCA data and Environmental Footprint Configuration. This enables manufacturers to assess and enhance the environmental impact of their products throughout the entire product lifecycle. 

By considering factors such as material selection, energy consumption during use, transportation, and end-of-life disposal, businesses can now make informed decisions that prioritize environmental consciousness, facilitated by the capabilities of configuration. Empowering sustainable manufacturing  starts with understanding the impact of products.

Don’t forget to sign up for our latest webinar:

Environmental Footprint Configuration for B2B Manufacturers WEBINAR – SEPTEMBER 19, 3:00 PM CET | 8:00 AM CDT

What business value does Environmental Footprint Configuration provide?  

Avoid manual LCA calculations for reporting or selection of products 

Manual LCA calculations can be time-consuming and resource-intensive, requiring extensive data collection, analysis, and modeling. Automating these calculations by having the LCA data integrated to advanced software systems, such as Tacton CPQ, saves valuable time and resources, allowing businesses to focus on other critical tasks. 

Instant footprint calculations for every selection:  

As users make selections within Tacton CPQ, the system provides real-time feedback on the environmental impact of those choices. Instant notifications and visual indicators highlight the footprint implications of specific configurations, enabling users to immediately assess the environmental consequences of their decisions. This feedback loop empowers users to explore alternative options and actively reduce the footprint while configuring the product. 

Optimize solutions for the lowest carbon footprint:  

Tacton CPQ integrates comprehensive environmental footprint data, including emissions, energy consumption, waste generation, and other relevant metrics. This data serves as the foundation for the optimization process, providing a detailed understanding of the environmental impact associated with different product configurations. 

Balance sustainability with other investment needs:  

By combining Tacton’s real-time price calculations with reduced footprint product selections within the configurator, buyers can promptly see the associated pricing. This empowers buyers to strike a balance between environmental sustainability and other investment considerations throughout the purchasing process. The immediate availability of pricing information enables informed decision-making that encompasses both the environmental impact and financial aspects of the purchase. 

Share carbon footprint with both customers and regulators: 

The footprint estimates generated in Tacton CPQ can be seamlessly integrated into quote documents, as well as utilized for ESG reporting purposes. This integration significantly reduces compliance costs by making environmental impact as commonplace as a price tag. By incorporating footprint estimates into various documents and reporting requirements, businesses can effectively streamline their compliance efforts while prioritizing environmental considerations alongside financial aspects. 

Generate new revenue and higher margin opportunities  

Incorporating sustainability into the configuration and quoting process with Environmental Footprint Configuration gives businesses a competitive edge. As environmental consciousness becomes more prevalent among customers, companies that can offer sustainable product options gain a distinct advantage over competitors. This differentiation can lead to increased market share, customer loyalty, and ultimately, higher revenue and margins. 

Improved branding and reputation 

By utilizing Environmental Footprint Configuration to offer sustainable product configurations, businesses can convey a strong sustainability message to their target audience. This commitment to environmental responsibility and conscious consumption resonates with customers who prioritize sustainable practices. Aligning the brand with sustainability values enhances its reputation as a socially responsible company, attracting environmentally conscious consumers. 

Improved stakeholder relationships: 

Sustainability-focused initiatives can strengthen relationships with stakeholders, including investors, employees, and business partners. Investors increasingly value sustainable practices, and a strong sustainability branding can attract socially responsible investors. Additionally, employees are more engaged and motivated when working for a company that prioritizes sustainability. Collaborating with like-minded business partners can also lead to mutually beneficial relationships and collaborations. 

Empowering sustainable manufacturing is the next challenge for businesses

In the pursuit of sustainable manufacturing practices, Tacton’s Environmental Footprint Configuration can be a powerful ally for businesses. By providing real-time insights, customizable sustainability metrics, collaboration features, cost optimization, and compliance assistance, this tool empowers manufacturers to make environmentally responsible decisions.  

As companies strive to reduce their environmental impact and meet the demands of a sustainability-focused market, integrating tools like Tacton’s Environmental Footprint Configuration Tool becomes increasingly vital. By leveraging this technology, manufacturers can embark on a path towards a greener future, minimizing their environmental footprint and contributing to a more sustainable world. 

Offering sustainable choices in the manufacturing sales cycle can help engage with customers who have new buying goals

In an increasingly aware world, customers are placing a growing emphasis on sustainability when making purchasing decisions. As businesses align their values with environmental responsibility, customers seek products and services that contribute to a greener planet.  

Tacton’s Environmental Footprint Configuration plays a pivotal role in this shift, offering customers a unique and meaningful way to engage with environmentally conscious manufacturers. Let’s explore why Tacton’s Environmental Footprint Configuration is vital and important to customers. 

Why is environmental footprint configuration important to customers? 

Transparent sustainability metrics:  

Customers want to know the environmental impact of the products they buy. Tacton’s Environmental Footprint Configuration provides clear, transparent sustainability metrics, offering customers insights into the lifecycle of a product. Armed with this information, customers can make informed choices, supporting manufacturers that prioritize sustainable practices. 

Contributing to a circular economy:  

Choosing products with a smaller environmental footprint encourages a circular economy where resources are conserved, waste is minimized, and materials are reused. Tacton’s solution enables customers to be part of a broader sustainability movement that fosters a circular approach to consumption. 

Supporting responsible brands:  

By embracing Tacton’s solution, businesses showcase their commitment to sustainability. Customers are more likely to support brands that actively work to reduce their carbon footprint and demonstrate corporate social responsibility. Tacton’s Environmental Footprint Configuration enables customers to support responsible companies, strengthening their own role as consumers. 

Aligning values with purchasing decisions:  

Environmental concerns have become an integral part of customers’ values. As a result, customers seek products that align with their sustainability beliefs. Tacton’s Environmental Footprint Configuration empowers customers to make purchasing decisions that resonate with their values, fostering a deeper connection between consumers and brands. With different factors driving customers sustainability initiatives, Environmental Footprint Configuration can attract those who are quickly moving towards new business models and mindsets.  

Customers today are conscious of the impact their choices have on the environment. By choosing products created using Tacton’s solution, customers actively contribute to a greener future. Collectively, these choices drive demand for sustainable products, encouraging more businesses to adopt new practices. 

Holding businesses accountable:  

As customers demand more sustainable options, businesses are motivated to improve their environmental practices. Tacton’s Environmental Footprint Configuration empowers customers to hold companies accountable for their environmental impact, pushing for greater transparency and continuous improvement. 

Offering sustainable choices for customers will be a must have differentiator going forward

Tacton’s Environmental Footprint Configuration is a powerful tool that resonates with environmentally conscious customers. By providing transparent sustainability metrics, supporting responsible brands, and aligning purchasing decisions with eco-friendly values, this solution empowers customers to make a positive impact on the planet. As businesses prioritize sustainability, customers can actively contribute to a greener future, fostering a more sustainable and responsible world for generations to come. Together, we can forge a path towards a healthier planet, guided by Tacton’s Environmental Footprint Configuration and the collective choices of eco-conscious consumers. 

Don’t forget to sign up for our latest webinar:

Environmental Footprint Configuration for B2B Manufacturers WEBINAR – SEPTEMBER 19, 3:00 PM CET | 8:00 AM CDT

What if you could configure anything? 

In today’s fast-paced manufacturing landscape, customization and personalization have become essential to meet the changing demands of customers. Manufacturers need to efficiently configure complex products and manage intricate pricing structures while ensuring accuracy and speed. To simplify this process, many companies are turning to Configure, Price, Quote (CPQ) software. 

Manufacturers across different industries are beginning to see the value CPQ software is bringing to their everyday sales and engineering processes. A company that uses CPQ software for their sales process typically has a complex product or service offering, with many customizable options and pricing variables.  

CPQ is particularly useful for companies that manufacture or sell products with multiple configuration options. CPQ helps manufacturers streamline their processes, enhance efficiency, and deliver accurate quotes and configurations to customers. Let’s look at a few different kinds of manufacturers who are using CPQ and the benefits. 

What kind of manufacturers can benefit from using CPQ? 

Industrial equipment manufacturers:  

Companies that manufacture complex machinery and equipment, such as manufacturing plants, material handling equipment, and medical equipment often have numerous configurable options. CPQ can help these companies to quickly generate accurate quotes for customers, taking into account the specific configuration of the product. 

Automotive manufacturers:  

Automotive companies that offer customizable cars, trucks, and other vehicles often have a wide range of options for each vehicle model. CPQ can help these companies to streamline the sales process, providing accurate quotes to customers and ensuring that the vehicle is configured correctly. 

Elevator manufacturers: 

Elevators often involve intricate configurations with various components, specifications, and regulations. The software ensures that all components are compatible and generates accurate configurations based on predefined rules, reducing errors and minimizing the risk of incompatible combinations.  

Watch how Swift Home Lifts use CPQ

Packaging and production lines manufacturers:

Packaging and production lines often involve a wide range of components, options, and configurations. CPQ software allows manufacturers to create a comprehensive catalog of components and configurations, enabling easy selection and customization of the packaging or production line equipment. Sales representatives and customers can configure the equipment based on their specific needs, ensuring accurate and compatible solutions. 

Read how Plus Pack is using CPQ 

Industrial Refrigeration Manufacturers

A new and emerging industry that is investing into CPQ solutions is Industrial Refrigeration manufacturing. This field involves highly specialized and complex systems that require precise configurations to meet specific environmental and operational requirements.

Tacton CPQ can significantly enhance the efficiency and accuracy of the Industrial Refrigeration Systems market by streamlining the complex configuration, pricing, and quoting processes.

Industrial refrigeration systems often need to fit into specific spatial configurations within a client’s facility, which can vary greatly depending on the type and size of the operation. CPQ software aids in layout planning by allowing sales and engineering teams to visualize and configure systems within the actual spatial constraints of the client’s environment.

This ensures that the designed systems not only meet functional requirements but also fit perfectly into the available space, optimizing both performance and usability. By addressing spatial challenges effectively, CPQ helps in delivering solutions that are both efficient and practical, further enhancing customer satisfaction and operational efficiency.

Large system manufacturers:

Large system configurations can be intricate and involve numerous components, options, and dependencies. CPQ software provides a user-friendly interface that simplifies the configuration process. It guides users through selecting compatible components, managing dependencies, and ensuring that all requirements are met. This simplification reduces errors and improves the efficiency of the configuration process. 

By leveraging CPQ software, large system manufacturers can simplify the configuration process, automate pricing and quoting, enhance visualization, improve collaboration, integrate with engineering and manufacturing systems, and gain valuable data insights. 

What are the benefits these manufactures are seeing using CPQ?  

Enhanced configurations: 

With CPQ software, manufacturers can configure even the most complex products quickly and accurately. The software allows for easy selection of components, features, and options, ensuring that customers receive tailored solutions that meet their unique requirements. 

Error-free quotes and pricing: 

Manual calculations are prone to errors, which can lead to costly mistakes and delays. CPQ software automates the pricing process based on predefined rules, ensuring accuracy and consistency. It enables manufacturers to generate error-free quotes with up-to-date pricing information, discounts, and promotions, improving customer satisfaction. 

Efficient sales processes:  

CPQ empowers sales teams by providing them with a user-friendly interface to configure products, select pricing options, and generate quotes in real-time. The software automates approval workflows, reducing administrative burdens and enabling sales representatives to focus on building relationships with customers and closing deals. 

Rapid turnaround time: 

CPQ eliminates time-consuming manual processes, enabling manufacturers to respond to customer inquiries and generate quotes with remarkable speed. By streamlining the quote-to-order process, manufacturers can shorten sales cycles, gain a competitive edge, and improve overall operational efficiency. 

Accurate order fulfillment:  

By integrating CPQ software with ERP systems, manufacturers can ensure seamless data transfer from the sales process to production and order fulfillment. This integration minimizes the risk of miscommunication and ensures that the final product matches the customer’s specifications precisely. 

Data-driven insights: 

CPQ provides manufacturers with valuable data and insights into customer preferences, sales trends, and pricing strategies. Analyzing this data can help manufacturers make informed decisions, optimize product offerings, and identify upsell and cross-sell opportunities. 

Who uses CPQ? 

Overall, companies that use CPQ software typically have complex product offerings, and the ability to accurately configure, price, and quote their products is critical to their success. CPQ software helps these companies to streamline their sales process, reduce errors, and improve customer satisfaction.

Exploring the Limits of Configurator Compatibility with Complex Products 

If you are selling B2B manufacturing products that are deeply individualized for each customer, you know the benefits of Configure-to-Order (CTO) compared to that of a manual and slow Engineer-to-Order (ETO) process.  With CTO you increase sales speed, accuracy and win rates – especially with a configurator you can trust.  

Can today’s configurators really handle the high level of complexity that B2B manufacturing products typically have?  

Let’s look at what complexity could be and how configurators may address it.  

• For standard and commoditized products with no variation you do not need configuration. An example could be a screw. These products can be sold through pick-to-order from a catalogue and have a repeatable and predictable order fulfillment process (production, delivery, installation).  
• On the next level we find products that are individualized but have a small number of part variants. A shoe may have different kinds of strings that you may want the customer to choose from, but the number of string types is mostly limited. More importantly, there is no dependency between the string and rest of the shoe: You can basically select any string type without getting into conflict with the functionality of the shoe. These products may use simple forms of configurators (often with a visual component) but the selection of parts variants is almost on par with standard products selection.  

 

• On the next level we find products that have tree-like assembly structure. A bike, for instance, consists of an assembly with subassemblies (e.g. frame, handlebar, front wheel, rear wheel, gears). For each subassembly there could be great variance (e.g. large selection of wheels and tires). Moreover, the selection of each subassembly or module is dependent on the selection of other subassemblies on the bike. For instance, some wheels and tires may be incompatible with the diameter and length of the frame fork. To avoid ordering faulty bikes, a configurator of bikes needs to keep track of these interdependencies. However, the number of subassemblies for a bike is static: at the time of setting up the bike configurator we know that a bike will only have one frame, one handlebar and two wheels (unless you are selling tandem bikes!). This makes the configuration problem less complex.  

• On the next level of complexity, however, that is not the case. In these products, the number positions at which those assembles can sit, is not known at the time of creating the product model. A heavy truck, for instance, may have 4, 6, 8 or even 10 wheels, depending on load capacity. In these cases, the configurator needs to support dynamic positions, the number of which affects other parts of the technical solution (e.g., the chassis, drive line and gearboxes). Only a hand full of configurators can handle this level of complexity with acceptable performance and a reasonable level of maintenance.  

• So even if a truck is complex, the range of positions are still finite and known. A heavy truck manufacturer may offer perhaps up to 10 wheels, but certainly not 40 or 100. But products with unknown scope do exist. Normally we call them systems. These products – for example HVAC systems, production lines, power distribution equipment, plants or wind turbine parks – typically have an organic and unbounded structure. The number of units in the system – and their spatial relations – is not known beforehand but may impact how the system performs. Each of those units may be complex and configurable in themselves, affecting the overall system landscape. Also, the ordering of the units may be important, especially in process flows systems. For a long time, these products have been deemed too complex for Configure-to-Order process and have been sold through manual Engineer-to-Order, causing long sales cycles, high cost of sales and costly quotes and order errors. Companies that have tried implementing a Configure-Price-Quote system for these products have suffered from performance issues and high maintenance costs of CPQ.  

However, recent configurator technologies now enable manufacturers to confidently Configure, Price & Quote large-scale systems with low sales costs and great sales tool performance. 

The Advantages of CAD:  Transform Design Plans into Digital Representations

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

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

What Is CAD Software?

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

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

How Is CAD Used in Manufacturing?

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

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

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

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

The Advantages and Disadvantages of CAD for Manufacturers

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

Benefits of CAD

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

Automation

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

Efficiency

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

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

Precision

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

Visualization

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

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

Sharing

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

Disadvantages of CAD

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

Technology Breakdowns

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

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

Budgetary Considerations

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

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

Pairing CAD and CPQ for Ultimate Efficiency

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

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

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

Get the Right Tools for a Successful Business with Tacton

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

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

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

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

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

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

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

What Is Sustainable Manufacturing?

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

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

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

Why Sustainability in Manufacturing Matters

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

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

Meeting Stakeholder Demands

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

Increase Your Business Value

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

Scaling Back the Budget

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

Boosting Your Bottom Line

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

Attracting Top Talent

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

Sustainable Manufacturing Practices for Your Business

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

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

Product Design

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

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

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

Operational Efficiency

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

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

Energy Management

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

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

Best Practices for Implementation

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

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

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

Eco-Friendly Manufacturing with CPQ Solutions from Tacton

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

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

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

A note about the Author:  

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

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

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

Use CPQ Analytics Software across the organization  

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

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

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

 Get a better understanding of your customer 

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

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

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

Streamline inventory 

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

Optimize your pricing and discounting structures  

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

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

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