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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Recent Interview with Dick Bourke, Industry Analyst and Iconic Figure in Industry - June 2, 2015

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Recent Interview with Dick Bourke, Industry Analyst and Iconic Figure in Industry - June 2, 2015

If we look at ERP and PLM, we can see some parallels in their development and maturity.  Before ERP there was MRP, or material requirements planning, which was strictly the core modules necessary to plan material requirements, quantities, inventories and due dates.  Properly structured bill of materials for manufacturing planning purposes or what’s now called the M-Bomb were critical along with inventory accuracy.  Then, as a broader set of applications began to emerge, the name ERP or enterprise resource planning took hold.  This now includes CRM, financials, HR, and many other applications meant to run the business. 

 

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