Matching CPQ with the “To-Order” Spectrum

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Matching CPQ with the “To-Order” Spectrum

CPQ can be implemented in a range of product configuration options.  As a starter for your strategic planning, here’s a generally accepted definition of “To-Order” options that will be your strategic choices. Assemble-to-Order (ATO) – products with standard sets of predefined features and options.  The customer selects specific features and options to develop the unique product configurations.  Orders are typically processed by an ERP system, for example, computers ordered over the Internet.

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How Do You Get Senior Management Buy-in

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How Do You Get Senior Management Buy-in

PLM inherently touches multiple departments and areas of responsibility.  It can start at sales, but at a minimum will involve engineering, planning, production and segments of manufacturing.  If your responsibilities are in engineering, then getting other departments to buy-in can be challenging.  Executive sponsorship cuts across these boundaries.  So, the real question is “how do I get the bosses to buy-in?”  The short answer is, in part, by identifying the business values at the P&L level.  PLM values can be tied to one or all of three areas on the P&L: revenues, cost of goods sold (CoGs) and overhead.  Thus, doing more for less will most likely be found in CoGs and overhead.

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