Cloud-based CPQ (Configure, Price, Quote) solutions have gained momentum across industries, but confusion arises between modern CPQ and legacy CTO (Configure-to-Order) solutions. While both use a constraints-based engine, their outputs differ: CPQ aids in creating accurate price quotes, while CTO focuses on generating product data for manufacturing.
Historically, configurators were split into manufacturing and sales types. Manufacturing configurators, like SAP’s Variant Configurator, helped rapidly create product data for complex orders without maintaining every variant in traditional systems. Over time, these tools evolved into rule-based systems integrated with ERP systems to automate order creation, cost calculation, and production.
With CRM’s rise, sales configurators were introduced to accurately select features for pricing. These tools often integrated with ERP systems to manage product data. Oracle’s E-Business Suite (EBS) unified both sales and manufacturing configurators, creating an efficient solution for configure-to-order products, though the ERP system’s complexity made it costly for some.
So, can CPQ replace an ERP configurator? It depends. For non-made-to-order products or service contracts, CPQ may suffice. However, for complex products requiring detailed manufacturing data, integration between the CPQ and ERP configurators might be necessary.
For EBS users transitioning to cloud CPQ, understanding the integration and maintenance of both configurators is crucial. Contact us for guidance on solution design, product selection, and implementation
