CPQ (Configure, Price, Quote) is a "guided selling" tool, used by companies to quickly and accurately generate quotes for orders, especially when dealing with complex products and services.
Traditionally, when salespeople create quotes, they use spreadsheets, look up paper catalogues, and consult a host of other documents. Such “source overload” may lead to salespeople forgetting discounts, using outdated prices, or making calculation errors.
But there is a solution. CPQ can handle these complexities automatically, minimize errors, and even shorten the sales cycle, boosting the overall sales efficiently as a result.
Put simply, CPQ knows all your company's products, prices, and rules, and does all the complex calculations for you – a process that otherwise may take too long and contain errors.
One of the most widely used CPQs is Salesforce.
There are many ways how businesses benefit from Salesforce CPQ:
- Sales reps can create quotes in minutes instead of hours.
- The system automatically applies the right prices and discounts, eliminating data integration errors.
- It suggests relevant add-on products.
- All quotes follow company rules and approval processes automatically.
- Salespeople can generate professional-looking proposals with just a few clicks.
In this article, we will examine why Salesforce CPQ integration with an ERP system is a great idea for businesses, as well go through a step by step integration process.
💡 Find out more about the top benefits of Salesforce CPQ for salespeople.
WHY SALESFORCE CPQ AND ERP SYSTEMS WORK WELL TOGETHER
It’s a common practice to integrate Salesforce CPQ and ERP systems. Not only do they complement each other in optimizing sales and operational processes, but they also create a frictionless data flow – from quote generation to order processing and fulfillment.
In general, integrating CPQ and ERP helps a business to create a centralized platform for capturing customer order details, managing product and pricing information, and fulfilling accurate orders.
Let’s sum up the key business benefits of integrating Salesforce CPQ with an ERP system:
- Data accuracy and consistency. The Salesforce CPQ - ERP integration syncs product catalogs, pricing, and order details, as well as minimizes discrepancies between sales and operations and gets rids of data silos.
- Smooth sales-to-order process. The integration ensures that configured quotes automatically turn into orders, reducing manual input and errors.
- Better inventory and resource planning. When Salesforce CPQ is integrated with ERP, When Salesforce CPQ is integrated with ERP, businesses always have access to accurate stock levels, production timelines, and delivery estimates.
- Better team collaboration. By providing a single source of truth for customer and sales data, Salesforce CPQ integration with an ERP system results in better collaboration between sales and finance teams.
- Lower costs and improved efficiency. The Salesforce CPQ - ERP Integration helps you save time and reduce operational costs by eliminating duplicate data entry and manual processes. No time is wasted on the data transfer step.
- Fewer human errors. Salesforce CPQ ensures that your salespeople only create correct orders and that the products offered are in stock and deliverable.
- Better customer experience.Faster and accurate quoting, order processing, and invoicing make your customers happy about their smooth experience.
HOW TO INTEGRATE SALESFORCE CPQ WITH MICROSOFT DYNAMICS ERP
To illustrate how Salesforce CPQ can integrate with an ERP system, let’s use Microsoft Dynamics 365 ERP as an example.
But first, let’s clarify. The current Microsoft Dynamics 365 products are:
Some companies still use the legacy Microsoft Dynamics products such as Dynamics NAV – predecessor to Business Central; Dynamics AX; Dynamics GP; and Dynamics SL.
The main difference is that the newer Microsoft Dynamics 365 products are cloud-based and offer more modern features and integrations, while the legacy versions were primarily on-premise solutions.
💡 Learn more about how Rapidi can help you integrate Salesforce with Microsoft Dynamics 365 products.
Here are the main Salesforce CPQ – Microsoft Dynamics 365 ERP integration steps:
STEP 1. Choose the integration method
First, you need to decide on the integration method that is right for you – it determines the overall data integration project’s success. Here are the main options:
- Microsoft Dynamics 365 Web Services or OData. Using Microsoft Dynamics 365 Web Services or OData can simplify Salesforce CPQ integration.
- Direct data reading. Data can be read directly from the Microsoft Dynamics 365 SQL database, which is a faster solution when working with an on-site database or Microsoft Azure.
- Middleware. Acting as an intermediary software layer between the two systems to facilitate communication and data exchange, these solutions offer pre-built connectors and data transformation capabilities. Yet, middleware solutions may require more technical expertise for setup and maintenance.
- API-based integration. Use APIs that allow direct communication between Salesforce CPQ and Microsoft Dynamics and enable real-time data exchange.
- Custom solutions. If your business has highly unique requirements, a custom solution might be necessary, which involves working with developers to build tailored integration tools.
- iPaaS solutions and pre-built connectors. iPaaS platforms provide tools to automatically synchronize data between Salesforce CPQ and Microsoft Dynamics 365 via pre-built connectors that make it easier to set up integrations without extensive coding. You can use data integration platforms like Rapidi, among others.
STEP 2. Data mapping and synchronization
To prepare for the smooth integration of systems, you need to make sure your data is tidy and synchronized.
For that, you will need to align Salesforce CPQ fields with corresponding fields in Microsoft Dynamics ERP. Then, determine how often data should sync (real-time, batch processing, or scheduled syncs), and set up unique identifiers to avoid duplicate records.
Salesforce CPQ - Microsoft Dynamics ERP integration typically includes the synchronization of:
- Customers and accounts
- Contacts
- Products
- Price books
- Sales history
- Sales orders
- Payment history
STEP 3. Ensure new products and pricing are updated
At this step you need to double-check that new products and basic pricing are loaded and updated in Microsoft Dynamics 365. This is important because this data will be fed into Salesforce CPQ. And if product and pricing data are accurate in both systems, the sales process is going to be easy and quick.
STEP 4. Develop and test the integration
This stage is more technical. You need to configure API endpoints or middleware connections and develop and implement data transformation rules to ensure consistency across both systems.
For that to work, it’s advisable to run comprehensive test cases, including edge scenarios, to validate data flow accuracy. You can also conduct load testing to ensure the integration can handle high transaction volumes without issues.
Finally, ensure security compliance and access controls, implementing role-based access where necessary.
STEP 5. Deployment and monitoring
Finally, it’s time to deploy the integration. Do it in phases to minimize disruptions and be able to add improvements.
To get your finger on the pulse of the Salesforce CPQ integration project, set up automated monitoring tools to track data flow, sync failures, and system performance, and implement logging and alerting mechanisms to quickly detect and resolve issues.
After the launch, monitor the project by gathering feedback from sales and operations teams about the integration’s performance – this will help you timely refine processes and address usability concerns.
CHALLENGES WITH SALESFORCE CPQ INTEGRATION & HOW TO AVOID THEM
Integrating Salesforce CPQ and ERP systems can be complex. In order to avoid potential pitfalls, you need to be aware of what may go wrong.
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CHALLENGE
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SOLUTION
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Data silos: Salesforce CPQ and ERP systems often operate separately, leading to data silos.
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Ensure that the integration creates a single source of truth – it needs to become your single platform for capturing all customer order details and managing both product and pricing information.
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Mapping complex data: The data structures and formats used by the two systems may differ, which affects data accuracy.
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It's paramount to choose the right integration approach, such as middleware or API-based integration.
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Data inconsistency
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Double-check if data mapping is accurate and both systems use standardized formats.
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System downtime
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Test the integration in a sandbox environment before full deployment.
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Security risks
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Use encryption and authentication protocols to protect sensitive business data.
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Low user adoption rates
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Provide proper training to employees to maximize the benefits of integration.
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Future scalability concerns
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Make sure the integration is designed to accommodate business growth and system updates.
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RAPIDI’S SOLUTION: HOW TO SMOOTHLY INTEGRATE SALESFORCE CPQ WITH MICROSOFT DYNAMICS 365
Rapidi can help you integrate Salesforce CPQ and Microsoft Dynamics 365 stress-free.
By using Microsoft Dynamics 365 Web Services or OData, we simplify the integration. Rapidi can also read data directly from the Microsoft Dynamics 365 SQL database – a faster solution when working with an on-site database or Microsoft Azure.
With Rapidi, you will:
- Benefit from both Salesforce CPQ ease-of-use and superior data visualization of Microsoft Dynamics 365 Business Central
- Have a single point of data entry as records in both systems will sync
- Have access to a free Salesforce App Extension that enables an overview of sales history and other CPQ information
- Create instant sales orders once a deal is closed in Salesforce
- Have access to customized integration according to your needs
💡 Read also: Should data integration be complex?
CONCLUSION
The synergy between Salesforce CPQ and an ERP system helps businesses to benefit from a more efficient, data-driven sales-to-order process.
When your sales and financial systems talk to each other without interruptions, sales can create quotes that automatically sync with your financial records, pricing stays up-to-date, and everyone has access to the same, accurate information.
All this means – fewer errors, quicker response times to customers, shorter sales cycles, and ultimately more closed deals.
Sure, setting up Salesforce CPQ integration isn't always simple. You'll need to plan carefully and choose the right approach. But the payoff is worth it!
➡️ Contact Rapidi today and learn how we can connect your Salesforce with your Microsoft Dynamics ERP.
Frequently asked questions
How long does it typically take to complete a Salesforce CPQ-ERP integration project?
While each project is unique, a typical integration usually takes 2-3 months depending on the complexity of your systems, data volume, and customization requirements. This includes planning, implementation, testing, and employee training phases.
Do we need to hire additional IT staff to maintain the integrated systems?
Most companies can maintain the integrated system with their existing IT team, though it's recommended to have at least one specialist trained specifically in both Salesforce CPQ and your ERP system. Regular maintenance is minimal as most processes are automated.
What happens to our existing data during the Salesforce CPQ integration process?
Your existing data remains safe during the integration process. Before the full implementation, a backup of all data is created, and the integration is first tested in a sandbox environment to ensure data integrity and proper synchronization.
Can we continue working during the integration process, or will there be system downtime?
Most of the integration work can be done without disrupting daily operations. Any necessary system downtime is typically scheduled during off-peak hours or weekends, and users are notified well in advance to minimize business impact.
