Best CPQ Software for Manufacturing: Comprehensive Guide

Manufacturers handling complex product setups and variable pricing models can streamline operations and stay ahead of the competition with CPQ (Configure, Price, Quote) software. CPQ software for manufacturing simplifies the quoting process, reduce errors, and accelerate sales cycles.

Overview of CPQ Software for Manufacturing

CPQ software for manufacturing simplifies the way businesses configure products, define precise pricing, create quotes, and handling subscription-based offering. Standing for Configure, Price, and Quote, CPQ software automates and simplifies complex sales processes, helping manufacturers close deals faster and more efficiently.

Quoting software for manufacturing helps manufacturers to effortlessly configure complex product variations, generate precise pricing, and deliver polished, professional quotes within minutes.

Manufacturing often involves customizable products with multiple variables such as dimensions, materials, finishes, and optional add-ons. CPQ software simplify this process by allowing teams to tailor configurations according to each customer’s needs.

Rather than spending hours manually adjusting product specs or pricing, the software provides step-by-step guidance, enabling sales teams to confidently and quickly create accurate quotes.

Importance of CPQ Software For Manufacturing

The quote management industry is projected to see strong growth, with its market value rising from USD 3.28 billion in 2025 to an estimated USD 7.11 billion by 2034. This reflects a robust compound annual growth rate (CAGR) of 8.97% over the forecast period (2025–2034).

As manufacturing evolves with more customizable products and dynamic pricing models, companies now can replace time-consuming manual tasks with smarter, more efficient solutions that improve accuracy and streamline the quoting process.

With the rise in product customization, delivering quotes that align perfectly with each customer’s specifications has become more complex. CPQ software designed for manufacturing solves this challenge by automating the configuration process, ensuring every quote is both accurate and consistent from start to finish.

In essence, quoting software for manufacturing helps to manage complex configurations, pricing, and quoting with greater precision and speed enhancing operational efficiency and strengthening their position in a highly competitive global marketplace.

Benefits of Manufacturing CPQ Software

It serves as a crucial asset for businesses aiming to streamline their sales workflows, minimize mistakes, and respond to customer needs more efficiently. For manufacturers, it simplifies the management of intricate product configurations and pricing models, making it a key driver of success in today’s fast-paced and competitive manufacturing landscape.

1) Streamlines Complex Product Configuration

Manufacturing often requires building products with a wide range of customizable elements such as materials, dimensions, and specialized features. Quoting software for manufacturing simplifies this process by guiding sales teams or customers through all available options, ensuring that only compatible and valid configurations are selected.

For instance, when configuring a custom machine, the software eliminates the risk of choosing mismatched components.

2) Improves Pricing Accuracy

Determining the right price for manufactured goods can be complex, especially when dealing with changing production costs, special discounts, and customer-specific pricing agreements. CPQ software for manufacturing takes the guesswork out by automatically generating accurate prices using up-to-date data like material rates and order volumes.

This intelligent automation minimizes pricing mistakes, such as underquoting, which may negatively impact revenue and overall business performance.

By ensuring accurate and reliable pricing, manufacturers protect their profitability while also fostering greater trust and long-term loyalty with their customers.

3) Saves Time and Boosts Productivity

Time saved on quoting and order processing can be redirected toward strengthening customer relationships, refining products, or upskilling teams. With automated tools handling repetitive tasks like verifying product compatibility or calculating pricing sales teams can operate more independently, reducing their reliance on technical staff.

This transformation not only enhances productivity but also allows teams to allocate resources toward more strategic and value-driven initiatives.

In fact, real-time quote generation led to a 43% reduction in proposal approval delays in 2025, highlighting how automation can accelerate workflows and improve responsiveness across the organization.

4) Supports Growth Without Complexity

As manufacturing companies expand, so do their product lines and customer demands making manual management increasingly complex. Manufacturing quoting software simplifies scalability by centralizing product configurations, pricing logic, and customer-specific requirements in a single, streamlined system.

Expanding into new markets, launching additional product lines, or managing high volumes of custom orders becomes seamless with CPQ software for manufacturing. The system ensures consistent processes and controlled configurations at every stage.

By reducing operational strain, it supports teams in maintaining exceptional service quality, even as business demands scale.

5) Improves Customer Experience

Manufacturing buyers often look for products customized to meet their unique specifications and needs. Delays or errors during the configuration and quoting process can lead to dissatisfaction and lost opportunities.

CPQ software for manufacturing industry enable a seamless, customized purchasing experience. Accurate quotes are generated quickly, assuring customers that their specifications will be met with precision.

This level of reliability and responsiveness enhances customer confidence, strengthens brand reputation, and drives long-term loyalty through repeat business delivering the elevated service standard modern buyers expect.

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Features That Support the Manufacturing Industry

Thriving in today’s competitive manufacturing landscape requires intelligent solutions that streamline complex processes. Quoting software for manufacturing simplifies custom product configuration, automating precise pricing, and accelerating quote generation.

1) Product Configuration Made Easy

One of the key strengths of manufacturing CPQ software is its ability to simplify the configuration of highly complex products.

It enables sales teams and buyers to effortlessly choose the correct combination of features, specifications, and components to meet precise requirements.

By validating every selection in real-time, the system eliminates manual errors and ensures that only feasible configurations move forward. CPQ solutions have the potential to shorten sales cycles by as much as 25%, speeding up the path from initial inquiry to final quote.

2) Accurate and Automated Pricing

Manufacturing pricing involves a variety of factors like material costs, labour, and discount structures which can be complex to manage manually.

CPQ software in manufacturing makes pricing easier by using set rules to automatically work out the cost based on the product options chosen.

By eliminating the need for manual calculations, this solution ensures faster and highly accurate quotes. It enhances pricing consistency, supports healthier profit margins, and enables teams to respond to customer requests.

3) Instant Quote and Invoice Generation

After a product is configured and priced, CPQ for manufacturing instantly creates a quote, allowing teams to respond to customer requests without delay. Once the order is confirmed, the system can also generate a professional invoice and sync smoothly with internal tools.

This automation reduces manual paperwork, keeps quotes and invoices aligned with agreed terms, and ensures a faster, more accurate workflow.

Accelerating the quoting process helps businesses improve cash flow, gain a competitive edge, and provide a smoother, more responsive customer experience.

4) Subscription Billing and Flexible Payment Options

In industries where repeat orders or subscriptions are common, CPQ software for manufacturing helps manage billing and revenue management smoothly. It makes sure that invoices for long-term deals and regular orders are accurate, reducing the chance of mistakes.

Sales teams can easily set up flexible payment plans like monthly, quarterly, or yearly based on what the customer prefers. The system also creates invoices automatically, saving time and making sure payments are sent on time.

By handling subscription billing well, the software helps manufacturers keep a steady cash flow and gives customers a more reliable and hassle-free experience.

5) Multi-Currency Support

For manufacturers operating across multiple countries, CPQ software for manufacturing provides strong multi-currency capabilities, making it a key asset for global operations.

As businesses grow into new regions, handling various currencies and languages becomes crucial for accurate quoting and smooth customer communication.

This feature enables the creation of localized quotes and product configurations without relying on manual currency conversions or language adjustments.

Whether it is pricing in USD, Euros, or other international currencies, the system automatically updates values based on the selected currency, ensuring accuracy and efficiency in every market.

Challenges in Manufacturing During the Quotation Process

Managing quotes and pricing in the manufacturing sector often involves multiple layers of complexity. From tailoring products to meet specific customer needs to maintaining precise and consistent pricing, manufacturers encounter several hurdles that can affect both operational speed and profit margins.

1) Handling Complex Product Variations

Manufacturers frequently work with products that offer a wide range of customization choices such as various sizes, materials, and optional features. For instance, a business producing industrial equipment may have thousands of possible configuration combinations.

Manually managing these options to generate a correct quote can be slow and error-prone, increasing the risk of selecting incompatible components.

2) Managing Customer-Specific Discounts and Contracts

Many manufacturing companies create personalized pricing agreements for key clients, such as bulk purchasers or long-term collaborators.

Relying on manual methods like spreadsheets or handwritten notes to manage these deals can be both time-consuming and unreliable.

These errors can slow down the sales cycle and potentially damage valuable client relationships.

3) Coordinating Approvals Across Teams

In manufacturing, different teams like engineering and finance often need to review quotes to make sure they are correct and profitable.

For example, if a customer asks for a custom machine, an engineer may need to check the design before the price is final. CPQ software for manufacturing speeds up the approval process, allowing quotes to move forward.

Better teamwork and faster approvals help avoid mistakes, speed up the quoting process, and give customers a smoother, more reliable experience.

4) Dealing with Manual Data Entry Errors

A lot of manufacturers still rely on manual tools like spreadsheets to create quotes. This increases the risk of mistakes such as entering the wrong price or quantity which can lead to serious issues.

For example, quoting 100 automotive parts instead of 1,000 can result in incorrect pricing and lost business.

These kinds of errors not only delay the process but also raise costs and disappoint customers who count on accurate and timely quotes.

5) Meeting Tight Subscription Customer Deadlines

Manufacturers that offer subscription-based products such as regular deliveries of custom parts or maintenance kits often need to respond quickly with accurate quotes to keep up with customer timelines.

For example, a business supplying monthly shipments of specialized filters may need to provide a new pricing plan within hours to stay in sync with the client’s production needs.

Doing this manually gathering product details, checking configurations, and calculating pricing can be difficult under pressure and may lead to mistakes. Delays or errors in quoting can hurt customer confidence and impact future renewals.

Best Practices to Follow for Better Outcome

Strong quoting and pricing strategies enable manufacturers to attract customers and protect profit margins by providing quick and accurate quotes. Below are some key best practices to ensure a smooth and successful quoting process.

1) Validate Configurations Before Quoting

In manufacturing especially when products can be customized it is important to confirm that a chosen setup is actually buildable before sharing a quote. This makes sure that all selected parts and features are compatible and can be produced without issues.

Quoting software for manufacturing helps by automatically checking product choices against built-in rules and technical requirements.

This early validation step avoids mistakes, shortens lead times, and ensures the final product matches customer needs.

2) Offer Customization Options

In manufacturing, each customer may have different pricing and billing requirements depending on order size, purchase frequency, or special agreements.

That is why flexibility in quoting and billing is key to meeting diverse customer expectations.

Offering tailored quotes based on factors like order volume, location, or repeat purchases allows manufacturers to meet individual needs more effectively.

This personalized approach not only strengthens customer satisfaction but also builds trust and long-term partnerships.

3) Standardize Pricing Models

Implementing a consistent pricing structure allows manufacturers to deliver quotes that are both fair to customers and sustainable for the business.

It simplifies the quoting process, making it easier and faster for sales teams to respond with confidence.

A well-defined pricing model considers key elements such as product variations, volume-based discounts, and negotiated customer terms. This ensures that pricing remains clear and reasonable whether it is for a small order or a large-scale purchase.

By following a structured pricing approach, manufacturers minimize quoting errors, accelerate approvals, and strengthen customer trust through transparency and reliability.

4) Use Analytics for Continuous Improvement

With the help of analytics tools, manufacturers can monitor the performance of their pricing and quoting processes, identifying what’s working and where improvements are needed. These tools help spot trends and forecast revenue.

Analytics can reveal which products require more time to generate quotes or identify areas where pricing adjustments occur most frequently.

This enables the team to address issues early on and refine their strategies to drive improved outcomes.

5) Automate Billing for Faster Transactions

Manufacturing CPQ software speeds up the order-to-cash cycle by streamlining and automating the invoicing process.

Once a quote is approved, the system instantly creates an invoice using the configured product details, pricing logic, applicable taxes, and discounts.

This removes the need for manual data entry, lowering the risk of errors and speeding up the payment process.

In essence, automated billing especially for subscription-based models boosts accuracy, streamlines operations, and improves cash flow.

Why Revenue 365 Is the Best Choice

Revenue 365 is a smart and reliable tool built to help businesses run their daily tasks more smoothly. Certified by Microsoft, it works perfectly with popular apps like MS Teams, Outlook, and SharePoint, so your team can stay productive without switching between platforms.

Its easy-to-use design means your team can quickly learn and start using it with little training. Setting it up is fast and hassle-free, helping you get started without delays.

Plus, with strong security features, Revenue 365 keeps your business data safe and always protected giving you confidence as you grow and manage your operations.

Conclusion

For manufacturing teams dealing with intricate product configurations and ever-changing pricing structures, a CPQ software for manufacturing can improvise the sales journey. Revenue 365 simplifies every stage from product selection to final quote enhancing speed, accuracy, and consistency throughout.

Where precision drives performance see how Revenue 365 can transform your quoting experience.

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Frequently Asked Questions

What is quoting automation in manufacturing?

Quoting automation in manufacturing refers to the use of technology to quickly and accurately generate pricing estimates for complex products. It minimizes manual effort, reduces the risk of errors, and speeds up the quoting process for manufacturers.