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Nowadays, many manufacturers are utilizing Enterprise Resource Planning (ERP) systems to ensure operational efficiency. These systems automatically integrate and manage key processes like inventory, production, finance, HR, and sales within one cohesive unit. This gives better visibility of the whole manufacturing process and saves business resources.
On the other hand, ERP product configurators can level up traditional ERPs by simplifying product customization based on customer preferences. That’s why these tools are known vital assets for manufacturers involved in made-to-order items to reduce manual phases.
This article will dive into how software product configuration is adopted in ERP systems. You will explore its features, benefits, and real cases to inspire more for your business. Without further ado, read now!
What is an ERP Product Configurator?
ERP product configurator is a product configurator used within ERPs. It ensures accurate, customized configurations that align with manufacturing capabilities without complex inputs. Its automation also streamlines all aspects of the process, helping businesses achieve a quick and high-quality turnaround in building and delivering orders for buyers.
Notably, ERP configuration software with Visual Configure, Price, Quote (Visual CPQ) can display product visualizations and generate accurate pricing and quotations all at once. Customers can then know exactly what they ordered and how much they will finally pay. This helps improve their buying experience and reduces their reliance on sales reps.
The workflow often starts with selecting product options like materials or dimensions. ERP product configurators continuously validate choices against predefined rules. Then, it generates BOMs and pricing details, seamlessly passing data to manufacturing teams. Based on these production instructions, businesses can ensure error-free final designs.
If so, what makes adopting ERP product configurators much more valuable than ever?
In fact, all manufacturers can ultilize ERP configuration software to boost their efficiency. However, this implementation is much more preferred for complex, bespoke products like cabinets, tables, shelves, and sofas. This is because these tools provide a high level of precision, scalability, and automation—handle complexity with ease in a short time. You will have a smoother workflow across manufacturing phases with only one interface.
Key Features of an ERP Product Configurator
The power of ERP product configuration management software lies in its core features. This section will explore the 5 capabilities that make it indispensable for manufacturers.
Let’s take a look below!
- Comprehensive Product Library Management
The first feature is the ability to maintain a centralized database of configurable items in dimensions, colors, finishes, and optional variants. This ensures that data is up-to-date and accurate in real time, allowing all teams to work with consistent, reliable information.
- Advanced Rules Engine
The next optimization for the ERP product configurator is to include an advanced rules engine. This allows for finalizing products based on pre-set configuration rules related to compatibility, pricing, and production constraints, making designs technically feasible.
In fact, this feature is always the leading priority in manufacturing high-modular designs. Products like furniture, industrial equipment, or machinery often involve multiple interchangeable parts. Especially when selling bespoke products, random combinations based on customer preferences might be against logical conditions, causing order errors.
- Visual Configuration Tools
Both manufacturers and customers need to interact with clear visuals of the product every time they configure it. While customers have a deeper understanding of product options and designs, business departments easily clarify finalized product requirements. These can effectively increase customer trust in products and reduce product returns.
Many sellers highlight the role of 3D configurators in offering real-time 3D visualizations. Everyone can instantly see every change they make in real time and interact with the product in 360 degrees, which is more immersive than 2D images or static visuals. Consequently, they feel more confident in making decisions and closing deals faster.
Try a demo with VividWorks to explore how 3D configurators transform manufacturing!
- Automated Documentation
The aim of using the ERP system is to automate the generation of documents like BOMs, work orders, and pricing quotes. As a part of this system, ERP product configurators should perform these tasks effectively to speed up production and ensure high accuracy.
- Integration Across Departments
Finally, we will talk about the ability to work well across departments like sales, finance, and supply chain. This helps you break down silos, boost collaboration, and create smooth workflows. Customers might feel more satisfied as orders are processed faster.
Benefits of Using an ERP Product Configurator for Manufacturers
1. Enhanced Efficiency and Reduced Errors
Traditional manufacturing processes lack the flexibility to handle products, especially for bespoke products. Multiple manual steps and back-and-forth with customers increase errors and delays. This often takes lots of time and resources, risking miscommunication.
Manufacturing configurators help simplify the workflow. They automate configuration, documentation, pricing, and quoting. Real-time validation cuts mistakes, saves production time, and lowers costly reworks. This all enhances manufacturing efficiency.
2. Improved Customer Satisfaction
Customers now expect personalized products. They also want speed and transparency in shopping. That’s when you need to invest in ERP configuration software to satisfy both.
Especially in the 3D product configurator for manufacturing, customers can work with 3D-viewed configurations and see how changes affect prices and quotes in real-time. They might feel in control and informed, helping increase their satisfaction and loyalty.
3. Increased Sales and Revenue
Manual manufacturing processes slow down sales conversion rates. High-modular systems face a bigger issue: Quoting and approving configurations can take weeks. This is due to back-to-forth communication between customers, sales reps, and engineers.
ERP configuration software addresses this with real-time visuals, automated pricing, and quick BOM generation. Buyers can quickly get all the product details they need. They don't have to wait for help from salespeople or deal with complex technical information. This increases responsiveness, leverages opportunities to close deals, and boosts sales.
4. Reduced Production Costs
Automation technology in ERP product configurators effectively reduces resource waste. With accurate BOMs, manufacturers can estimate the materials needed for orders. ERPs also centralize tasks instead of controlling them separately, bettering upfront expenses.
5. Better Inventory Management
This manufacturing product configurator tool is part of the ERP system. So, it often links with inventory systems. This way, it provides real-time updates on stock levels. From that, manufacturers plan procurement more accurately and avoid overstocking or stockouts. In the long run, it contributes to leaner business operations and improved cash flow.
Conclusion
ERP product configurators have revolutionized manufacturing by streamlining customization, boosting order-to-sales efficiency, and increasing customer satisfaction. These software product configurations apparently empower manufacturers to deliver made-to-order solutions accurately and quickly, helping them stay ahead in the market.
When selecting well-structured ERP configuration software, remember to look for key features like centralized management, advanced rule engines, and visual configuration. Also, let’s see how the leading manufacturers use it to achieve the best performance.
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