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CPQ -
Configure, Price
and Quoting
Excellence
A BearingPoint Accelerator
Realizing all potentials of the CPQ Excellence will lead to
reduced process complexity with direct impact on time,
cost and risk. Main key performance indicators will be
both higher win rates of your offers, as well as lower
quotation throughput times. CPQ Excellence takes
advantage of potentials in a systematic configuration,
pricing, and quotation process in a complex
business environment.
CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator
Contents
Market Drivers
Our Approach
Client Benefits
References
Contact
CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator
Market Drivers
Quoting often is slow, expensive and risky.
Quote lead time and risks arise mainly through technical incorrectness, incorrect calculation, by use of
several data sources, and by errors in manual collection between IT systems.
Product knowledge and technical understanding of new product development cannot been made
available fast enough to the global sales or channel partner.
In sum, considerable negative effects arise, such as:
• Fewer sales due to lost deals
• Less profit in acquired offers
• Suboptimal satisfaction of the employees involved in the process in the company
• Suboptimal perceived quality of customer view
A professional quotation process improves the quality of a customer specific proposal in order to
increase the win rate. An optimized proposal process will meet the customers time slot independent
from single engineering or commercial resources, to configure customer specific products in complex
commercial situations.
An optimized quotation process requires a complex functional integration into your PLM, CRM, and SCM
system landscape in order to coordinate and consolidate all quote relevant information, e.g.
configuration, pricing, commercial, technical, and legal information.
CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
Our Approach
Quotation quality improvement as well as cost and lead
time reduction in the quotation process by implementing
an efficient CPQ system and process landscape
CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator
CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
Commercial Complexity
Deep dive into your quote creation
process to get a common understanding
of organizational impact, with special
focus on technical complexity,
challenging bit situations, and involved
organizational entities.
Overall redesign of your configuration
pricing and quoting process, in order to
create high quality proposals and reduce
time to quote.
Product Complexity
Analysis of the impact and
dependencies of your specific product
range (MTS, CTO, ETO) on quote
complexity.
Consider specific configuration and
pricing approaches to leverage your past
knowledge and experience.
IT Solution & Technology
Design an integrated and sustainable IT
solution incorporating existing PLM,
CRM, ERP systems.
Conception of a CPQ Solution with
functional integration of configuration
and output management and
collaboration tools.
Supply deep market knowledge of
available CPQ solutions.
Our Approach
Product complexity and commercial complexity determine
quoting process sophistication
CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator
CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
Inquiries based on
standard pricelist
Inquiries based on agreed
customer conditions
Individual inquiries
with special
conditions /combinations
Public tender or inquiries
for large order(s)
Quote based on catalog
(MTS)
Quote with product
variants
Level of “Product Complexity”
(internal) stakeholders complexity
(e.g. sales, PM, engineering, logistics, controlling, finance, legal, purchasing, production, management)
Quote with modified
products (CTO)
Proposal with engineering
project (ETO)
Levelof„commercialcomplexity“
logisticalcomplexity
(currierexpress,freight,fulltruckLoad/Container,projectlogistics)
Client Benefits
Increase quote win rate from 25% to 26%, increase 4% in
sales revenue!
• Fast, effective and successful proposal production effort, with higher quality and maximized profitability
• Increased quoted volume and increased hit rate
• Meet the customer time slot to provide the budget proposal or complete final quote
• Reduction of commercial risk
• Global standardized degree of detail and uniform proposal layout
Companies using the CPQ processes and tools have higher order size, higher offer and shorter sales cycle than companies
without CPQ in comparable industries.
CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator
CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator
CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
References
Process and IT optimization for overall CPQ process
Realized benefits:
Quotation quality improvement
Cost and lead time reduction in the quotation process by implementing an
efficient CPQ system and process landscape
Provide transparency
Identification of standard tools to CPQ
Global plant constructor for energy supply
Process and IT optimization for proposal management
Realized benefits:
Reduction time for the preparation of proposals
Optimization of the bidding process
Centralized, integrated and sustainable IT solution
Predetermined, standardized degree of detail and uniform proposal layout
Major German plant engineering company
Process optimization, CPQ implementation, and output management approach
Realized benefits:
Global process template for sales processes
Quotation quality improvement
Improved market transparency
Higher number of submitted quotations with an increased hit rate
Global manufacturer of elevators and escalators
BearingPoint benchmark "Efficient Proposal & Opportunity”
Realized benefits:
Increasing complexity of Quoting is seen by 79% of companies surveyed as the
biggest challenge, lack of resources (50% response) and lack of standardization
potentials (43% response) followed at No. 2 and 3
Benchmarks
Contact
About BearingPoint
BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and
adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We
combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s
individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s
leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with
them for measurable results and long-lasting success.
For more information, please visit: www.bearingpoint.com
CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator
© 2015 BearingPoint. All rights reserved
Donald Wachs
Partner
BearingPoint Germany
donald.wachs@bearingpoint.com
CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT<
Ruediger Specht
Senior Manager
BearingPoint Germany
ruediger.specht@bearingpoint.com

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CPQ - Configure, Price and Quoting Excellence

  • 1. > CPQ - Configure, Price and Quoting Excellence A BearingPoint Accelerator Realizing all potentials of the CPQ Excellence will lead to reduced process complexity with direct impact on time, cost and risk. Main key performance indicators will be both higher win rates of your offers, as well as lower quotation throughput times. CPQ Excellence takes advantage of potentials in a systematic configuration, pricing, and quotation process in a complex business environment.
  • 2. CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator Contents Market Drivers Our Approach Client Benefits References Contact CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
  • 3. CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator Market Drivers Quoting often is slow, expensive and risky. Quote lead time and risks arise mainly through technical incorrectness, incorrect calculation, by use of several data sources, and by errors in manual collection between IT systems. Product knowledge and technical understanding of new product development cannot been made available fast enough to the global sales or channel partner. In sum, considerable negative effects arise, such as: • Fewer sales due to lost deals • Less profit in acquired offers • Suboptimal satisfaction of the employees involved in the process in the company • Suboptimal perceived quality of customer view A professional quotation process improves the quality of a customer specific proposal in order to increase the win rate. An optimized proposal process will meet the customers time slot independent from single engineering or commercial resources, to configure customer specific products in complex commercial situations. An optimized quotation process requires a complex functional integration into your PLM, CRM, and SCM system landscape in order to coordinate and consolidate all quote relevant information, e.g. configuration, pricing, commercial, technical, and legal information. CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
  • 4. Our Approach Quotation quality improvement as well as cost and lead time reduction in the quotation process by implementing an efficient CPQ system and process landscape CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Commercial Complexity Deep dive into your quote creation process to get a common understanding of organizational impact, with special focus on technical complexity, challenging bit situations, and involved organizational entities. Overall redesign of your configuration pricing and quoting process, in order to create high quality proposals and reduce time to quote. Product Complexity Analysis of the impact and dependencies of your specific product range (MTS, CTO, ETO) on quote complexity. Consider specific configuration and pricing approaches to leverage your past knowledge and experience. IT Solution & Technology Design an integrated and sustainable IT solution incorporating existing PLM, CRM, ERP systems. Conception of a CPQ Solution with functional integration of configuration and output management and collaboration tools. Supply deep market knowledge of available CPQ solutions.
  • 5. Our Approach Product complexity and commercial complexity determine quoting process sophistication CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > Inquiries based on standard pricelist Inquiries based on agreed customer conditions Individual inquiries with special conditions /combinations Public tender or inquiries for large order(s) Quote based on catalog (MTS) Quote with product variants Level of “Product Complexity” (internal) stakeholders complexity (e.g. sales, PM, engineering, logistics, controlling, finance, legal, purchasing, production, management) Quote with modified products (CTO) Proposal with engineering project (ETO) Levelof„commercialcomplexity“ logisticalcomplexity (currierexpress,freight,fulltruckLoad/Container,projectlogistics)
  • 6. Client Benefits Increase quote win rate from 25% to 26%, increase 4% in sales revenue! • Fast, effective and successful proposal production effort, with higher quality and maximized profitability • Increased quoted volume and increased hit rate • Meet the customer time slot to provide the budget proposal or complete final quote • Reduction of commercial risk • Global standardized degree of detail and uniform proposal layout Companies using the CPQ processes and tools have higher order size, higher offer and shorter sales cycle than companies without CPQ in comparable industries. CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< >
  • 7. CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< > References Process and IT optimization for overall CPQ process Realized benefits: Quotation quality improvement Cost and lead time reduction in the quotation process by implementing an efficient CPQ system and process landscape Provide transparency Identification of standard tools to CPQ Global plant constructor for energy supply Process and IT optimization for proposal management Realized benefits: Reduction time for the preparation of proposals Optimization of the bidding process Centralized, integrated and sustainable IT solution Predetermined, standardized degree of detail and uniform proposal layout Major German plant engineering company Process optimization, CPQ implementation, and output management approach Realized benefits: Global process template for sales processes Quotation quality improvement Improved market transparency Higher number of submitted quotations with an increased hit rate Global manufacturer of elevators and escalators BearingPoint benchmark "Efficient Proposal & Opportunity” Realized benefits: Increasing complexity of Quoting is seen by 79% of companies surveyed as the biggest challenge, lack of resources (50% response) and lack of standardization potentials (43% response) followed at No. 2 and 3 Benchmarks
  • 8. Contact About BearingPoint BearingPoint consultants understand that the world of business changes constantly and that the resulting complexities demand intelligent and adaptive solutions. Our clients, whether in commercial or financial industries or in government, experience real results when they work with us. We combine industry, operational and technology skills with relevant proprietary and other assets in order to tailor solutions for each client’s individual challenges. This adaptive approach is at the heart of our culture and has led to long-standing relationships with many of the world’s leading companies and organizations. Our global consulting network of 9,700 people serves clients in more than 70 countries and engages with them for measurable results and long-lasting success. For more information, please visit: www.bearingpoint.com CPQ - Configure, Price and Quoting Excellence | A BearingPoint Accelerator © 2015 BearingPoint. All rights reserved Donald Wachs Partner BearingPoint Germany donald.wachs@bearingpoint.com CLIENT BENEFITSOUR APPROACHMARKET DRIVERS REFERENCES CONTACT< Ruediger Specht Senior Manager BearingPoint Germany ruediger.specht@bearingpoint.com