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Why your PLM needs a CPQ

In the past, products were not very complicated to sell and a simple list of parts was enough to describe what was included in a product. However, as products became more complex and companies started offering more variations, it became necessary to develop more advanced product description models and tools in order to quote and price the product.

One solution was to create a hierarchy of parts to keep track of all the different components. But in the 1970s and 1980s, some industries had so many variations that it was difficult to update the hierarchical structure for each product model. To make things easier, companies started using labels to describe how sub-assemblies were used in different product variations.

Nowadays, these product descriptions are fully configurable and use abstract representations of design solutions. These elements only represent actual parts or assemblies when values are assigned to certain parameters. This change from using a hierarchy of parts with variations to configurable structures is often driven by the need for mass customization. Mass customization refers to a company's ability to offer a wide range of customized products or services while still maintaining the efficiency and cost-effectiveness of mass production.


One tool that can help companies achieve mass customization is Configure, Price, Quote (CPQ) software. This software simplifies and automates the process of creating custom quotes for products or services. It allows companies to easily configure their offerings based on the specific needs and preferences of their customers and to generate accurate and up-to-date quotes based on these configurations.

Using CPQ software can improve a company's sales process, reduce the time and effort required to create quotes, and increase customer satisfaction by providing more accurate and timely pricing information.


Product Lifecycle Management (PLM) is another important tool for managing the development and manufacturing of products. PLM systems handle the entire lifecycle of a product, from the initial concept and design phase to manufacturing, distribution, and retirement. They help companies organize and centralize all the data and processes related to a product and collaborate with various teams and stakeholders throughout the product development process.

PLM systems often include tools for product design and engineering as well as tools for managing product data and processes like change management, quality management, and regulatory compliance. They may also include tools for managing supply chain and manufacturing processes and tools for managing product lifecycle costs and risks.

A CPQ system complements the PLM system. In some cases, a CPQ system may be enough, while in other cases a more comprehensive PLM system may be needed. The decision to use one or both of these systems should be based on a thorough analysis of a company's specific needs and goals.

Why PLM need CPQ

The length of time required to implement a Product Lifecycle Management (PLM) system will depend on a number of factors, including the complexity of the system, the scale of the project, and the resources and expertise available. Some PLM projects may be relatively small and simple, but most commonly projects may be much larger and more complex, and may take several years to complete.

A CPQ system can help to simplify the implementation of a Product Lifecycle Management (PLM) system in several ways.

First, a CPQ system can streamline and automate the process of creating custom quotes for products or services, which can help to reduce the time and effort required to generate quotes and improve the accuracy of pricing information. This can help to free up resources that can be redirected towards implementing and maintaining the PLM system.

Second, a CPQ system can help to ensure that the product configuration and pricing information used in the PLM system is accurate and up-to-date. By automating the process of creating custom quotes, a CPQ system can help to eliminate errors and discrepancies that can otherwise arise when manually creating quotes.

Finally, a CPQ system can help to improve the overall efficiency of the product development process by providing a centralized platform for managing product configuration, pricing, and quoting information. This can help to improve collaboration and communication between different teams and stakeholders, and can help to reduce the risk of errors and delays.

Overall, a CPQ system can help to make the implementation of a PLM system faster and more efficient by simplifying the process of creating custom quotes and improving the accuracy and reliability of product configuration and pricing information.

This is why your PLM needs a CPQ. We would be happy to tell you more.


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