Comprehensive Economic Impact of Cincom CPQ

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last updated：Dec 26, 2023

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Power up your sales with Cincom CPQ! Cost reduction and business benefits made possible by CPQ.

This report presents the findings of a survey conducted by Forrester Consulting on behalf of Cincom, published in June 2019, which quantitatively measures the ROI experienced by a certain automotive manufacturer’s customers through the implementation of Cincom CPQ over three years. Table of Contents: - Executive Summary Key Findings TEI Framework and Methodology - CPQ Customer Journey Interviewed Organization Key Results - Benefit Analysis Cost Savings from Improved Order Accuracy Engineer Productivity Reduction in Development Efforts of Legacy Solutions Time Savings in the Quoting Process Unquantified Benefits Flexibility - Cost Analysis Cincom Annual License Fees Professional Services and Hosting Fees - Financial Summary - Cincom CPQ: Overview - Appendix A: Total Economic Impact

Related Link - https://www.cincom.co.jp/cpq/services/total-econom…

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basic information

The purpose of this survey is to provide a framework for evaluating the potential economic impact of Cincom CPQ on organizations. To better understand the benefits, costs, and risks associated with this investment, Forrester conducted interviews with application managers from automotive manufacturers that employ a Go-to-Market strategy involving both dealers and direct sellers. Before using Cincom CPQ, sellers were forced to rely entirely on a manual quoting process. To gather customer requirements, sales representatives would talk to buyers, recheck past purchase histories to collect old specifications, and manually update quotes. Due to the lack of interaction with manufacturers, this process had the potential for pricing and configuration errors on both sides. By adopting Cincom CPQ, they achieved millions of dollars in cost savings from improved order accuracy, a $2 million profit from increased productivity of engineering staff, and a reduction in cycle time from order to cash.

Applications/Examples of results

Here is a portion of the data. (For details, it can be downloaded from the related link.) Main survey results: Quantified benefits: The organizations interviewed experienced the following quantified benefits in present value (PV) after risk adjustments: › Cost savings from improved order accuracy. Reducing the number of errors and change orders required for vehicle shipments and invoices not only saves dollars but also has positive effects downstream. A 33% reduction in mistakes over three years resulted in a better customer experience for both dealers and end customers. This reduction in mistakes was valued at approximately $6.2 million over three years. › Increased productivity of engineers on the manufacturing line. With the implementation of Cincom CPQ, the engineering team recognized that 80% of vehicles contained similar parts, leading them to develop a more modular custom product catalog. As a result, they were able to create an engineering configurator and assist with pre-builds. Consequently, the time spent on engineering was reduced by 20%, resulting in over $1.6 million in benefits over three years.