As we step into 2025, small and medium-sized businesses (SMBs) are poised for significant growth and transformation. Fueled by technological advancements and evolving customer expectations, SMBs are embracing evolving, innovative strategies to stay competitive.
In this dynamic landscape, AI will, of course, continue to have an impact, but exactly how and where is TBD. Whereas proven solutions such as Configure, Price, Quote (CPQ) applications, along with complementary systems like CRM and ERP, will continue to prove themselves the most pivotal tools for defining and supporting key trends.
And what are the key trends for SMBs in 2025? There are the old favorites (such as customer experience and digital transformation), but we’re going to focus on a trend that we think will have a huge impact: supply chain management.
More importantly, we’re going to focus on how SMBs can leverage tools like CPQ within their own four walls to help address supply chain challenges.
Supply Chain Disruptions in 2025
Supply chain disruptions have become a persistent challenge for businesses worldwide. From component shortages to logistical delays, these issues can significantly impact revenue and customer satisfaction.
Supply chain disruptions can lead to:
Delayed Deliveries: Longer wait times for customers can erode brand loyalty.
Increased Costs: Rising material and shipping costs can reduce profit margins.
Stockouts: Inability to fulfill orders can lead to lost sales and customer dissatisfaction.
Pricing Errors: Incorrect pricing due to fluctuating costs can damage customer relationships and reduce revenue.
So how can a tool like CPQ play a role in addressing these issues?
CPQ software empowers sales teams to accurately configure products, calculate prices, and generate quotes in real-time. This efficiency can significantly help combat supply chain challenges by providing real-time product availability insights, faster sales quote generation, enhanced supply chain visibility, for starters.
Real-Time Product Availability
CPQ systems can integrate with inventory management systems to provide real-time information on product availability. Not only that, but when a specific product is out of stock, the system can suggest alternative options or configurations that are readily available.
And in service to the bottom line, CPQ can offer dynamic pricing functionality, adjusting prices based on real-time inventory levels and supplier costs, helping to optimize revenue and mitigate the impact of shortages.
Faster Quote Generation
In addition to the countless hours (days!) saved by automating the quote generation process (which reduces manual effort and accelerates the sales cycle), CPQ can automate calculations and error checking to minimize the risk of pricing mistakes, and ensure more accurate quotes created more quickly. And when there are “bumps” in the supply chain, getting a quote out today instead of tomorrow can be the difference between an opportunity won or lost.
Enhanced Supply Chain Visibility
Perhaps most importantly, CPQ systems can analyze sales data to identify trends and patterns in product demand and help improve forecasting. With the data from a CPQ solution being connected to an ERP system, businesses can proactively adjust inventory levels and production schedules. Not only that, but CPQ can facilitate collaboration between sales, operations, and supply chain teams, ensuring everyone is aligned on product availability and delivery timelines.
As 2025 gets underway, supply chain challenges will continue to evolve. And while it will take more than one tool or tactic to solve these challenges, CPQ will remain a critical asset in a business's “four walls” that can help it navigate the complexities of the supply chain in the outside world.
