Top Benefits of ERP Integration with CPQ Systems

Ever feel like your business is running on fragmented systems, each trying to keep up with increasing business demands? You’re not alone.

Between juggling complex product configurations, chasing up-to-date inventory data, and trying to streamline the quoting process, important tasks tend to slip through the cracks.

But what if your ERP and CPQ systems could work together seamlessly, taking the complexity out of these processes and giving your teams the clarity they need to thrive?

The truth is, ERP-CPQ integration strategy is about much more than connecting two systems.

Imagine your sales team generating error-free quotes in minutes, production teams working with up-to-the-second data, and operations running like a well-oiled machine, all while enhancing customer satisfaction.

This article explores how integrating ERP with CPQ can transform your business. From improving accuracy to scaling operations, we’ll dive into the tangible benefits this powerful combination offers.

Sounds like something your business could use? Let’s get into it.

1. Streamlined Data Flow

One of the most immediate benefits of integrating your ERP with a CPQ system is the seamless flow of data between the two. We all know data is valuable, but switching between numerous different tools to find what you need can be tricky.

Joe Rapolla from NanaWall-systemen puts it perfectly:

“Beyond the visualization capabilities, Epicor CPQ has excellent integrations with Salesforce, AutoCAD and Solidworks for lots of different output workflows.”

This ERP integration strategy ensures that your product data, pricing information, and customer details are always up-to-date and consistent across both systems.

The result is faster quote generation, fewer errors, and a single source of truth for your entire organization.

2. Enhanced Accuracy in Quoting and Ordering

When your CPQ system can pull real-time data from your ERP software, the accuracy of your quotes skyrockets. No more quoting products that are out of stock or pricing based on outdated costs.

Christian Rodriguez from Frameless Hardware Company (FHC) outlined this challenge before his company integrated Epicor CPQ:

“It’s a business based on custom hardware—custom-sized doors and openings with multiple options for glass types, handle types, colors, heights, widths, etc. All that quoting was previously done through Excel. But the problem was the prices were never up-to-date from the manufacturing side.”

With ERP-CPQ integration, Rodriguez’s team now has access to current pricing and inventory information, ensuring that every quote is accurate and every promised product is available.

Jesse Dorado, Head of Technical Sales at FHC, explained the impact:

“Processing large quotes and entering them into the system used to take 1-2 hours. Using CPQ, we can now complete the same task in just 10-15 minutes at most……it automatically connects to our systems—no manual input.”

3. Accelerated Quote-to-Cash Cycle

The integration of ERP software and CPQ systems can hugely speed up your quote-to-cash cycle. By automating the flow of information from quote creation to order fulfillment, you can reduce delays and get paid faster.

Joshua Martin from CMTP, an Australian packaging company, saw dramatic improvements after implementation:

“It’s taken a quoting process that might have a turnaround of two days into something that now takes five, 10 minutes max. So that’s a massive, massive difference.”

This acceleration doesn’t just improve cash flow; it also enhances customer satisfaction by providing faster service.

4. Improved Visibility Across Departments

ERP-CPQ integration breaks down silos between sales, finance, and operations.

Sales teams can see real-time inventory levels and production schedules, while operations can better anticipate incoming orders based on pipeline data in the CPQ system.

This improved visibility leads to better decision-making across the board. For instance, the finance team can make more accurate forecasts, and the operations team can optimize production schedules based on anticipated demand.

5. Enhanced Product Configuration

When your CPQ system is integrated with your ERP, it can leverage detailed product data to offer more sophisticated configuration options. This is particularly valuable for companies dealing with complex, customizable products.

Jan H. Wiebenga, CTO at Van Wijnen, a Dutch housing developer, noted the impact of this capability:

“Our sales time has been cut in half, looking at it from first customer contact until the realization of the project itself.”

By offering customers the ability to configure products with confidence that the configurations are manufacturable and accurately priced, companies can improve both sales effectiveness and customer satisfaction.

6. Streamlined Approval Processes

Integration between ERP and CPQ systems can automate and streamline approval processes.

For instance, discounts that exceed certain thresholds can be automatically routed to the appropriate manager for approval, all while maintaining a clear audit trail.

This speeds up the sales process and ensures compliance with company policies and regulatory requirements.

7. Better Inventory Management

With ERP-CPQ integration, your sales team always has access to real-time inventory data. This helps businesses confidently promise delivery dates, reducing the risk of backorders and disappointed customers.

Moreover, robust integration allows for better demand forecasting. As the CPQ system captures data flow on product configurations and options that customers are selecting, this information can be fed back into the ERP system to inform purchasing and production planning.

8. Improved Customer Experience

When all your systems are talking to each other, you can provide a smoother, more consistent experience for your customers.

From accurate quotes delivered quickly to on-time order fulfillment, ERP-CPQ integration helps you meet and exceed customer expectations.

Adam Halfmann, Senior Director of Program Management at Schoolspecialiteit, experienced this firsthand:

“Epicor CPQ provided us with valuable pre-sale data we’d never accessed before. Analyzing trends, popular configurations, and customer preferences captured by the system enables us to optimize our product mix, tailor marketing efforts, and deliver a more targeted, personalized customer journey.”

9. Data-Driven Decision Making

The integration of an ERP solution and CPQ system creates a wealth of data that can drive strategic decision-making with seamless communication. You can analyze which product configurations are most popular, which options drive the highest margins, and how different pricing strategies impact sales.

This data can inform everything from product development to marketing strategies, helping you stay competitive in a rapidly changing market.

10. Scalability and Flexibility

As your business grows and evolves, an integrated ERP-CPQ system can grow with you. Whether you’re adding new product lines, expanding into new markets, or acquiring other businesses, a well-integrated system can adapt to your changing needs.

Armando Rodriguez from FHC experienced this scalability:

“With the logic structured in our CPQ system, 90% of our orders no longer require manual engineering work. Tasks that used to take my engineers half a day can now be completed in minutes. As a result, we’ve significantly reduced our lead times by several days.”

Challenges and Considerations

While the benefits of ERP-CPQ integration are clear, it’s important to approach the integration process thoughtfully. Here are a few key challenges to keep in mind:

1. Data Mapping: Ensuring that data fields in your ERP system align correctly with those in your CPQ system can be complex, especially for companies with extensive product catalogs or complex pricing structures.
2. Change Management: Integration often requires changes to existing processes. Be prepared to invest in training and change management to ensure smooth adoption across your organization.
3. Maatwerk: While off-the-shelf integrations exist, many companies find they need some level of customization to meet their specific needs. This can add time and cost to the implementation process.
4. Ongoing Maintenance: As both your ERP and CPQ systems evolve, you’ll need to ensure that the integration remains robust and effective.

The Power of ERP-CPQ Integration

ERP-CPQ integration serves as a catalyst for business transformation in companies looking to stay competitive, regardless of their sector.

With integrated systems, businesses gain deeper insights into customer preferences and market trends. This enables more strategic decision-making and helps identify new growth opportunities.

Yes, it requires an investment of time and resources. Yes, there will be challenges along the way.

But the long-term benefits—in terms of efficiency, accuracy, and customer satisfaction—far outweigh the short-term hurdles.

Don’t let fragmented systems hold your business back. Contact us today for a personalized demo and see how Epicor CPQ can transform your business.