CPQ Glossary: Key terms explained in simple words

CPQ:

Stands for "Configure, Price, Quote" and describes software that supports the sale of complex products and services by automating configuration, pricing and quotation generation.

Product Configurator:

Enables customers or sales staff to customise products or services based on predefined rules and options.

Pricing:

In the CPQ context, these are automated rules that calculate prices based on selected product features, quantities, discounts or other factors.

Quotation generation:

Automatic generation of professional quotations, including product descriptions, prices, conditions and configurations.

Guided Selling:

A function that guides sales staff or customers through the configuration process to ensure that all relevant options are considered and a valid quotation is created.

Set of rules:

A collection of rules and conditions that define which product features and options are compatible with each other and which prices apply. The management and processing of (consistent) rules is a core task of CPQ and variant management systems to enable the configuration of (technically correct) products and services.

Variant management:

The management and control of a large number of product variants and options to ensure that all combinations can be configured and evaluated correctly.

Interfaces:

Connections to other company systems such as ERP, CRM or PLM to exchange data and automate processes.

Workflows:

Automated workflows that define how quotations are created, approved and processed. For example, a salesperson can use a workflow to forward a quote for a discount to the back office or their line manager. After approval, the workflow returns the quotation to the salesperson for further processing. Many other workflows and dependencies are conceivable and can be customised to meet your specific approval processes.

Self-service portal:

An online platform that allows customers to configure products and request quotations themselves.

Printing / Quotation printing:

Quotation printing according to predefined rules with layouts that can be customised - differentiated for different user groups, regions, etc.

Product finder:

Configuration backwards, customer enters requirements and the CPQ returns the product that best matches the requirements.

3D CPQ:

Enables the interactive configuration of products in a 3D environment. With the principle "What you see is what you get", changes are immediately visible, misunderstandings are avoided and customer satisfaction is increased. At the same time, you reduce costs and lead times, as the technical validity of the combinations is automatically checked and the design department is relieved. The 3D product configurator can be used flexibly, whether in sales, on your website, in a digital showroom or in your web shop - for an enormous competitive advantage. 3D is an "add-on" - configurations can also be created in full without the support of 3D technology.

Offline client:

Enables the CPQ system to be used even without an internet connection, for example in certain factory halls or at remote production sites/locations. This allows you to configure and create quotations without online access in order to organise your sales processes flexibly and independently of the Internet connection. Configured products and data are synchronised when the internet connection is restored.

CAD Automation:

CAD automation is the automated creation of technical drawings and 3D models based on configuration data, which reduces manual work steps in design and increases efficiency.

With this glossary, you are well equipped to explore the world of SAE CPQ and utilise the benefits of this technology for your company.

Are there any other terms that interest you? Contact us, we will be happy to help you!

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