As the world continues to face the challenges of climate change, manufacturers will need to step up and find ways to operate sustainably. At the same time, they will also need to adapt their sales models to stay competitive. Technology will play a key role in helping manufacturers achieve both of these goals.
One area where technology can help is in the area of configure-price-quote (CPQ) solutions. These solutions can help manufacturers configure optimal solutions for customers that take sustainability requirements into account. This can help to reduce waste and improve energy efficiency.
Tech solutions for enabling sustainability
Technology will be crucial in this effort, and solutions such as automation, artificial intelligence, machine learning, and data analytics can help manufacturers reduce waste without compromising customer needs. This is because these technologies can help to optimize the production process, identify inefficiencies, and streamline workflows.
Manufacturers can achieve sustainability by starting with modern CPQ solutions. These solutions can help configure the most optimal product options for customers, taking into account sustainability requirements. In addition, CPQ solutions can automate and optimize the quoting process, helping to speed up the sales cycle.
CPQ solutions will be particularly important in this regard, as they can help manufacturers recommend and use sustainable materials, and reduce wasteful components and oversizing.
Specifically, CPQ solutions can:
- Help identify and recommend sustainable materials that meet customer needs: By taking into account a customer’s specific needs, CPQ solutions can recommend sustainable materials that meet those needs. For example, a customer might need a product that is both durable and environmentally friendly. A CPQ solution could recommend a material that is both environmentally friendly and durable.
- Reduce the need for manual input, minimize errors and ensure better accuracy: Many sustainable materials require specific handling instructions. CPQ solutions can automate the selection of these materials, helping to reduce the chances of human error.
- Recommend products that are energy-efficient and environmentally friendly: By using data analytics, CPQ solutions can recommend products that are both energy-efficient and environmentally friendly. This can help reduce the amount of CO2 emissions from a customer’s product.
- Improve the customer experience: Offering environmentally friendly products can be a selling point for customers. CPQ solutions can help manufacturers highlight these products to customers, improving the customer experience.
- Optimize pricing and quoting for more sustainable solutions: CPQ solutions can help optimize pricing and quoting for more sustainable solutions. This takes into account the cost of sustainable materials as well as the potential savings that can be realized through increased energy efficiency.
Why should manufacturers choose CPQ solutions?
There are several reasons why manufacturers should consider implementing CPQ solutions. Manufacturers that make the switch to CPQ solutions can benefit in several ways, including:
- Improved customer experience: Offering environmentally friendly products can be a selling point for customers. CPQ solutions can help manufacturers highlight these products to customers, improving the customer experience.
- Improved product quality: CPQ solutions can help manufacturers configure the most optimal product options for customers, taking into account sustainability requirements. This can help to reduce waste and improve energy efficiency.
- Faster sales cycle: CPQ solutions can automate and optimize the quoting process, helping to speed up the sales cycle.
- Reduced material waste: CPQ solutions can help identify and recommend sustainable materials that meet customer needs. In addition, CPQ solutions can automate the selection of these materials, helping to reduce the chances of human error.
- Reduced CO2 emissions: By recommending products that are energy-efficient and environmentally friendly, CPQ solutions can help reduce the amount of CO2
According to research from CapGemini, manufacturers will achieve a return on investment from these efforts. More than 80% of businesses saw an increase in brand reputation, improved environmental, social, and governance (ESG) ratings, and enhanced efficiency and productivity from sustainability efforts.
Customers want to do business with responsible companies, and CPQ solutions can help manufacturers become more sustainable while improving the customer experience.
How data and technology solutions can accelerate sustainability efforts
Manufacturers are being pushed to address climate change while also finding new ways to conduct business that satisfy changing consumer demands. Sustainability has to be a part of the product and services that are being bought and sold. CPQ solutions can help reduce the environmental impact of products while still meeting customer needs. Keep an eye on how CPQ solutions play a bigger part in 2022 as manufacturers accelerate their change initiatives.
