Cost to Make
Cost-Based Quoting
For contract manufacturing and engineered products companies, the quoting process starts with a request from a customer for a product that does not exist. Today’s Customer Resource Management (CRM), Configure-Price-Quote (CPQ), and Product Lifecycle Management (PLM) tools assume that every possible option, material, or feature already exists and has a price. But to enable a quoting process that delivers real, actionable cost and profit information, the solution is Cost-Based Quoting powered by ImpactECS.
Cost-Based Quoting (CBQ) is more than just a workflow process used by the sales team to generate a document. CBQ supports all three phases of the quoting process – inventing the product, costing and pricing the product, and presenting the quote and tracking its performance.
The CBQ process includes an management and control system that provides workflow, approval, oversight, and analysis of the process. Ultimately, a properly executed CBQ process brings consistency, accuracy, and speed to the effort.
ImpactECS links detailed BOM and routing data, sourcing and vendor data, and other relevant expenses to create a powerful analysis and simulation platform that provides meaningful results. The answers from ImpactECS can help guide negotiations with customers and monitor cost and profit performance of ongoing or long-term agreements.
Also, connect ImpactECS with CRM solutions like Salesforce.com, Microsoft Dynamics, and others to create a fully integrated quoting process and eliminate fictional ERP data and ad hoc spreadsheet quotes with limited cost insights.
Create a Cost-Based Quoting program with actionable cost information from ImpactECS
- Enhance quotes with detailed product data: Create a central location for data from CRM, CAD, and PLM systems to calculate, iterate, share, and manage estimated costs by quote.
- Leverage historical product data: Access libraries of past products and BOMs to generate quote cost estimates or start with editable, user-defined templates.
- Connect quoting process stakeholders: Every department – sales, marketing, engineering, design, quoting, cost controlling, supply chain, and commercial finance – has access to the quoting process to create transparency and improve communications.
- Incorporate new and external data: Expand the data set beyond ERP master data to include new, estimated, predicted, or market data for material costs, labor costs, and overhead spending.
- Model profit impacts of critical decisions: Simulate pricing methodologies, evaluate make vs. buy options for components or outsourced processes, consider costs of design times and capital, and evaluate ROI at estimated costs and prices.
- Generate unlimited cost versions: Create, maintain, and analyze quote cost versions with the granular cost details for product creation, engineering, testing, and manufacturing.
Transform the Quoting Process for Engineer-to-Order Manufacturing with Cost-Based Quoting
Traditional CPQ applications presume that every possible option or feature for a new product is already invented, costed, and priced. In an engineer-to-order world, this presumption falls apart. Successfully quoting new business requires inventing, costing, and pricing the product before a quote is sent to the customer.
Read the article to learn more about our three phase approach to costing for new products, new customers or new quotes.
Resources
#CostTalk Q+A on Cost-Based Quoting
Watch the 30-min Q+A >Learn More About ImpactECS – Video Library
Visit the Video Library >Creating a Cost-Focused Culture
Watch the Webinar >Is Your Product Costing Process Healthy?
Get your Score >Costing in Changing Business Environments
Watch the Discussion >Ready to see ImpactECS in action?
Get a glimpse of how we help companiesunderstand their costs and profits