Bridging the Configuration Gap: Why Manual Adjustments Matter in CPQ

Full automation in CPQ (Configure, Price, Quote) systems has been an aspirational goal for years. The idea of configuring a product completely, generating a flawless bill of materials (BOM), and immediately sending it downstream to production is a tantalizing vision. But the reality is often far more nuanced. For many manufacturers, achieving 100% automation isn't just challenging—it’s sometimes impractical.

Here’s the thing: products are complex. No matter how robust your CPQ system is, there are often outliers—unique configurations, one-off requirements, or unexpected costs—that demand manual intervention. In fact, for some companies, up to 20-30% of their BOM adjustments happen after the initial configuration. This raises a critical question: should we strive for perfection in automation, or should we embrace a hybrid approach that blends automation with manual processes?

The Configuration Gap

Let’s break this down. Most CPQ systems aim to handle the majority of the work upfront. By the time a configuration is complete, the BOM is supposed to be ready for production, with all parts, materials, and costs accounted for. However, there are times when this ideal doesn’t hold.

• Custom Components: Some products require custom elements that are difficult to predefine in a CPQ system.
• Unique Costs: Specific cost elements may vary based on market conditions, customer-specific agreements, or unforeseen changes during the quoting process.
• External Dependencies: Changes to external systems like ERP or PLM may influence the BOM or require last-minute adjustments.

This "gap" between configuration and final BOM approval often leaves companies relying on manual processes to ensure accuracy. While some see this as a limitation of their CPQ system, it may actually be an essential feature of their workflow.

Why Manual Adjustments Aren’t a Problem

The idea of manual intervention might seem counterproductive in an era focused on efficiency and automation. However, it’s important to recognize that flexibility is often more valuable than rigidity. By allowing room for manual adjustments, manufacturers can:

1. Ensure Accuracy: Catch and correct errors or omissions that automated processes might miss.
2. Accommodate Variability: Address unique customer needs or production requirements that fall outside standard configurations.
3. Enhance Responsiveness: Quickly adapt to last-minute changes without overhauling the entire configuration process.

The key is not to eliminate manual adjustments but to streamline and standardize them, making the process as efficient and error-proof as possible.

Toward a Hybrid Configuration Model

A growing trend in CPQ is the move toward hybrid models—systems that integrate automation with structured manual input. This approach doesn’t aim to eliminate manual adjustments but rather incorporates them into the workflow in a controlled, predictable manner.

For example:

• Predefined Components: Introducing predefined line items that can be easily selected and added to the BOM ensures consistency while still allowing flexibility.
• Read-Only Attributes: Locking certain attributes of manual additions helps maintain data integrity.
• Integrated Costing: Building tools to handle manual cost inputs within the CPQ system avoids the need for separate calculations or external tools.

These innovations provide a framework for handling the unpredictable elements of configuration while preserving the benefits of automation.

Redefining Efficiency in CPQ

The ultimate goal of CPQ isn’t to eliminate human input—it’s to make the process more efficient, predictable, and accurate. Embracing manual adjustments as part of the workflow, rather than treating them as failures, allows companies to create systems that work for them, not the other way around.

So, is the dream of full automation dead? Not at all. But it’s time to acknowledge that perfection isn’t always the point. Sometimes, the best solution is one that balances the strengths of automation with the insights and flexibility of human input.