SAP CPQ: Configure - Price - Quote.

Quickly and Securely Create Quotes of Any Complexity.

SAP CPQ Functions
Optimization Approaches
Your Benefits
Why Arvato Systems?
Deep Dive

With SAP CPQ, You Can Quickly and Securely Create Complex Quotations in B2B Trade

Especially in B2B trade, the creation of offers is often a challenge. The simple rule: the more variants a product has, the more time-consuming the offer - sales staff can tell you a thing or two about this. 

After all, a wide range of configuration options and alternatives, as well as suitable services, must be taken into account and the correct prices must be determined - and individually agreed terms and conditions with the respective customer must be taken into account. All of this information must be poured into a detailed yet clear offer. 

In addition, the offer, however complex it may be, should reach the customer as quickly as possible - sales success is only possible if the right product is offered at the right price at the right time. In addition, customer loyalty benefits from a smooth and fair ordering process.

All this can hardly be done by hand, for example on the basis of Excel files. The time required is enormous, the procedure error-prone - and in the heat of the moment, potential cross-selling and upselling opportunities are often overlooked.

Get To the Point Quickly with SAP CPQ

The solution for this dilemma are so-called "CPQ" applications. The abbreviation stands for "Configure, Price, Quote". These systems enable the fast and secure creation of quotations for products and services that are available in many variants and combinations.

CPQ systems offer the following key functionality, among others:

  • Workflow-based quote generation
  • Selection and configuration of components and products
  • Pricing taking into account customer-specific discounts
  • Options for up- and cross-selling offers
  • Creation and negotiation of offers
  • Collaboration functions, e.g. for internal approval of offers

Intuitive Process with SAP CPQ

Workflow SAP CX CPQ (Chart)

SAP offers a corresponding solution with SAP CPQ. It defines an intuitive, step-driven process that not only simplifies the creation of complex quotations. In addition, it is designed to protect margins, minimize the error rate and automate approval processes. 

Tools and guardrails such as customer-specific pricing, definition of minimum margins, and specification of component dependencies help. They represent an increase in efficiency with the aim of being able to provide customers with accurate quotes as quickly as possible. In this way, they help to significantly shorten the sales cycle.

This approach is also known as "guided selling" or "hybrid sales". The guided, digitized sales process takes the pressure off the sales team, freeing it up for more value-adding activities such as personal customer consulting and building new customer relationships. Side effects are the relief of product management and the faster training of new employees in sales.

Optimization Approaches for the Preparation of Offers

Configuration Templates

AI based optimization

New Business Models

Save time with configuration templates

In the course of using a CPQ application, configurations for partial trades such as a server rack or even meaningful bundles of products and services will arise again and again. Using so-called product nesting, these existing configurations can be nested and hierarchically integrated into new offers - an enormous time saver.

Artificial intelligence optimizes offer generation

The selection of products relevant to the offer in question is supported by artificial intelligence, which makes appropriate suggestions. In addition, an individual product catalog, fast search, guided product recommendations and product comparisons ensure that the appropriate components can be selected quickly.

Support for innovative business models

The world of B2B commerce is also undergoing dynamic change. Customer expectations have not only risen in terms of the speed of processes - customers increasingly also want new services such as subscriptions to consumables. SAP CPQ therefore supports various business models - enabling retailers and direct selling manufacturers to adapt their range of offerings to customer requirements in a timely and flexible manner.

Standalone Application with Great Flexibility

SAP CPQ is a standalone cloud-based application that can also be used in non-SAP environments. However, thanks to its open architecture, it can be integrated with the SAP Customer Experience, which is also cloud-based, as well as with the SAP S4 HANA Echtzeit ERP Suite system - thus unleashing its full potential. In this way, the interaction with customers can be increased "to the max" and the lead-to-cash process can be developed from the beginning to the conclusion.

In addition, the integration of SAP CPQ with SAP CLM for Contract Lifecycle Management not only speeds up contract creation - it also minimizes legal, financial and regulatory risks.

Proven CPQ Expertise

The market research company Gartner has recognized SAP's competence in the CPQ segment in one of its well-known "Magic Quadrants" - the experts have categorized SAP as one of the "visionary leaders" in the CPQ field in the landscape of CPQ providers for the third time in a row.

Your Benefits from SAP CPQ:

Shortening the Sales Cycle...

...through fast, rule-based creation of convincing offers

Increasing operational efficiency...

...through integrated quote-to-fulfillment processes with simultaneous significant cost reduction

Increasing the accuracy of the offers...

...through automated internal approval processes and exception workflows

Protection of margins...

...through product, customer and channel dependent control of price formation

Avoidance of uncontrolled discounts...

...through rule-based permissions and restrictions

Increase in volume per offer...

...through the use of intelligent cross-selling and upselling recommendations

Why Arvato Systems?

Arvato Systems has been supporting companies worldwide in their e-commerce strategy for over 20 years. We are one of the leading enablers when it comes to all-encompassing business transformation in commerce based on SAP solutions. 
As IT and business experts, we always have our finger on the pulse of best practices, trends and innovations. We listen carefully and translate business requirements into convenient, efficient and secure technological solutions.  In doing so, we bring our experience from a multitude of business transformation projects in the retail industry to the table. Our ambition is to optimally position your e-commerce business for today and the future and to exceed your customers' expectations.

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ARTICLE: Complex offers of multi-variant products are time-consuming and error-prone. CPQ applications accelerate the process and help to avoid time consuming and expensive mistakes.

Your Contact for SAP CPQ

Dr. Nasser Kaspari
Expert for eCommerce