Mercura Glossary
The Comprehensive CPQ & Manufacturing Glossary
Your definitive guide to the terminology of Configure, Price, Quote (CPQ) and enterprise manufacturing software. Whether you are scaling your manufacturing operations or looking to optimize your sales engineering workflow, this resource provides clear, actionable definitions to help you navigate the landscape of modern product configuration, pricing engines, and enterprise software integration.
C
These are specialized software tools designed to handle products with thousands of potential variations and rules. They manage the combinatorial complexity that standard quoting tools cannot handle.
They allow businesses to offer a wide range of custom options without overwhelming the sales team or risking manufacturing errors.
The configuration engine is the core backend component that processes product rules and logic. It validates user selections in real-time to ensure that every configured product is manufacturable and technically viable.
It manages constraints and dependencies, preventing incompatible options from being selected during the configuration process.
A configurator is a software application that enables users to select specific components and options to create a unique product variant. It manages the rules that dictate how different parts interact.
Configurators are key to delivering personalized customer experiences in both B2B and B2C markets.
CPQ stands for Configure, Price, Quote. It is software that helps companies automate the lifecycle of quoting and proposal generation. It enables sales teams to configure complex products, price them accurately, and generate professional quotes quickly.
CPQ is essential for manufacturers of complex products to streamline sales operations and reduce the time from quote to cash.
CPQ analytics provide insights into sales performance, product popularity, and quoting efficiency. By tracking user behavior and quote data, businesses can optimize pricing strategies and product offerings.
Data-driven insights help identify bottlenecks in the sales process and high-converting product configurations.
CPQ for manufacturers is tailored to support complex manufacturing workflows, including engineer-to-order (ETO) and configure-to-order (CTO) processes. It often integrates with CAD and PLM systems.
It helps manufacturers handle high variability in product specifications while maintaining production efficiency.
CPQ software is an enterprise application that integrates with CRM and ERP platforms to manage the entire quoting process. It provides a centralized hub for product rules, pricing structures, and approval workflows.
Implementing CPQ software reduces sales cycle time and administrative overhead for companies with complex product lines.
E
Many businesses start with Excel for quoting but outgrow it due to errors and lack of scalability. CPQ serves as a robust alternative, offering centralized data, version control, and automated logic that Excel lacks.
Switching to CPQ eliminates 'spreadsheet hell', ensuring data integrity and faster quote generation.
I
Industrial CPQ refers to Configure, Price, Quote solutions specifically designed for the manufacturing and industrial sectors. It handles heavy-duty complexity, engineering calculations, and BOM generation.
It bridges the gap between sales and engineering by ensuring that quoted products are engineering-validated.
An industrial product configurator is capable of handling the deep technical rules and engineering constraints typical of industrial equipment. It ensures that custom configurations meet safety and performance standards.
Essential for machinery, plant engineering, and other sectors where product integrity is critical.
This term describes the application of CPQ tools to streamline sales processes in industrial markets. It focuses on empowering technical sales teams to generate accurate quotes for complex machinery and equipment.
It enables non-technical sales staff to sell complex industrial solutions without constant engineering support.
CPQ integrations connect the configurator with other enterprise systems such as CRM, ERP, and CAD. This ensures seamless data flow between sales, engineering, and manufacturing departments.
Connecting CPQ with an ERP system automates the transfer of order data, bills of materials (BOMs), and pricing updates.
P
A pricing engine is a software component that automatically calculates product prices based on selected options, rules, discounts, and market conditions. It ensures accurate and consistent pricing across all sales channels.
Pricing engines handle complex logic such as volume discounts, bundle pricing, and regional price lists, eliminating manual calculation errors.
A product configurator is a user-facing tool that allows customers or sales reps to customize a product's features, options, and specifications. It validates these choices against manufacturing rules to ensure buildability.
Product configurators are widely used in industries ranging from automotive to industrial machinery for mass customization.
Product modelling involves defining the structure, rules, and logic of a configurable product. It establishes the relationships between different components, ensuring that only valid product combinations can be selected.
Effective product modelling is the foundation of a robust CPQ system, enabling the handling of complex product rules and dependencies.
Q
This feature automates the creation of professional sales documents, including quotes, proposals, and contracts. It pulls data directly from the configuration to generate accurate, branded PDF documents instantly.
Automated document generation speeds up the sales cycle and ensures that all documentation is consistent and error-free.
S
A sales configurator is a tool used by sales teams to guide customers through the product selection process. It ensures that sales representatives recommend the right products and options based on customer needs.
It simplifies the selling of complex products by handling technical details, allowing salespeople to focus on customer relationships.
Sales engineering software assists technical sales teams in designing solutions for customers. It combines CRM, CPQ, and engineering tools to facilitate the technical configuration and costing of projects.
It reduces the friction between sales enquiries and detailed engineering design.
V
Visual CPQ enables customers and sales teams to see 2D or 3D representations of products as they are configured. It provides real-time visual feedback, ensuring that the configured product matches the customer's expectations.
High-quality visualizations increase engagement and confidence, reducing errors and return rates for complex configurable products.