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Showing posts with label tacton. Show all posts
Showing posts with label tacton. Show all posts

Tacton CPQ with online CAD Automation

Posted On Friday, November 8, 2019


A common request from our customers is a simple visualization of their products. They're not looking for:

- An exact CAD-drawing, because that can mean that their customer can copy the product and get it produced cheaper

- A fully fledged visualization with perfect surfaces, because they understand the challenge of setting up and maintaining this over time.

Our customers are looking for something in between,  let's call it 'sales CAD'!

We decided to investigate the market for this type of product and found Dynamaker. Dynamaker calls themselves Online CAD for Mass Customization.

We decided to set up a demo together, and selected a electrical cabinet as an example. The electrical cabinet configuration problem is a classic in the CPQ-world. It's really challenging as it's essentially a 'Bin packing problem'. This means that you shouldn't try to solve it optimally, as it may take an eternity. So we're using a smart(er) version of the 'first fit algoritm'.

One of the key take-aways from setting up a demo together, is how easy both Dynamaker and Tacton are to integrate to. Tacton has ready-made functionality to allow external (visualization) windows in the tool, and to send messages to the visualization. Dynamaker in turn can easily pick up messages from external configurators and feed them to their online CAD. We essentially had a simple version up and running within less than 2 hours.




I think the integration of the tools is really cool, taking the best of both worlds. Don't hesitate to reach out to us, if you would like a demo of the combined solution!

Video explaining CPQ

Posted On Wednesday, September 25, 2019

Tacton just published a new video briefly decscribing what CPQ is. Enjoy!


What is a CPQ process?

Posted On Wednesday, August 14, 2019


Definition

CPQ stands for Configure, Price, Quote. The CPQ process includes selecting components (configure), handling prices and discounts (price) and generating various documentation (quote, technical specifications, 2D- and 3D-drawings).

The CPQ process has a long history with manufactures of complex products, but with the introduction of SaaS (software as a service) the market is currently expanding into service offerings and less complex products.

The CPQ process

- supports a simple way to select valid product combinations with respect to product rules and limitations

- prices the product according to bundling and discounts (manual or automatic)

- creates an accurate and persuasive quote documents based on configuration and pricing information information

CPQ software connects front and back end systems and automates the lead-to-cash process.

What is a CPQ process?

What’s normally included in the CPQ process? Is it all automated and in what way is it adoptable and flexible?

Configure (the C in the CPQ process)

The overall problem is that complex products often have limitations in the way a product can be configured. This can be physical limitations how options can be combined. It’s also very common that there are sales/marketing reasons for limiting availability of certain product combinations. 

A modern CPQ process simplifies the interaction by asking high-level questions about requirements. This is often referred to as guided selling.

The magic bullet when it comes to the CPQ process is the ease of maintenance. The time it takes to do updates as the product portfolio evolves is the real differentiator between a “good” and a “not so good” CPQ process.

Price (the P in CPQ process)

The pricing can, if you let it, be just as complex as the product itself. Manufacturing costs, geographies, competitive situation, and local protocols all comes into play with a clever pricing strategy.

More and more companies are currently moving to a more value-based pricing. What value does your superior product offer deliver to a specific customer? This requires some heavy lifting when it comes to analysis but once that’s in place the CPQ process can really leverage the bottom-line profit and still keep customers loyal to your brand.

Price adjustments is also an important part of the pricing step in the CPQ process. This can be set up to be automatic but should also offer flexibility and advice for sales tactics.

Quote (the Q in the CPQ process)

Once the product is configured and prices correctly, respecting both product limitations and pricing rules, the result is presented in one or more documents. These documents describe the product and is often personalized to resonate with various stakeholders it should be presented to.

The documents generated in the CPQ process describe the product an includes texts, illustrations, data sheets and sometimes drawings, all customized for each offer generated. 

The level of details can be personalized, and document generation should be fully automated.

Publicly available CPQ examples

Posted On Saturday, February 2, 2019


Configurators built using CPQ software :

Aritco (Animech Technologies)
Bennington Marine (Verenia)
B├╝rkert (Tacton)
Demag (Camos)
Ebara (Intelliquip)
Festo (Camos)
Grundfos (Configit)
John Deere (FPX in the old version, Configit in the new version)
Maxon motor (Camos)
Mercedes-Benz Trucks (CAS Software / SAP)
Piab (Tacton)
Scania (Tacton)
Tuff Shed (KBmax)

Demos by vendors:

8-queens problem (Configit)
Bike/Lawn Mower/Etc (e-Con Solutions)
Cabinet Configurator (Configure1st)
Hi-tech, SaaS and IT/Managed Services (CallidusCloud CPQ)
Scissor lift/Cupboard/Etc (DriveWorks)
Sudoku (Tacton)

Notable configurators built in-house:

DAF Trucks
International Trucks
MAN Trucks
Montech AG
Renault Trucks
Schindler
Siemens AG
Volkswagen


Other configurators may be found in the configurator database, however most of them are very simple B2C (Business to Consumer) products.
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