Quick summary
- Metal fabrication quoting software helps manufacturers set accurate prices for jobs based on real-time cost data like labor, material and running of machines
- This software helps to reduce costs and improve productivity, which supports healthier margins
- Mie Trak Pro is an ERP with a built-in quoting functionality and has advanced features such as one-click pricing, automated win/loss ratios and full quote histories
Quoting is a big part of running a manufacturing business but it will take up significant time if you don’t have good processes in place to manage it. Guesswork can lead to you under or over-quoting for work, which either hits your margins or is prohibitively expensive for your potential customers. Metal fabricators in the U.S. have experienced significant price volatility in recent years – so it’s even more important that your pricing reflects the true cost of materials and production.
In this article, we’ll look at how quoting software can help you improve the accuracy of your estimates and strengthen your business.
What we’ll cover:
- What is quoting software for manufacturing?
- What is the best quoting software for manufacturing?
- How does quoting software save costs?
- Benefits of quoting software for metal fabricators
- The best quoting software
What is quoting software for manufacturing?
Metal fabrication quoting software accurately predicts how much a project will cost because it uses the most up-to-date data on labor, materials and overheads such as running machines. This helps you quickly calculate a fair and competitive price for customers while maintaining a healthy profit margin. Quotes are closely matched to actual prices, so your costs are covered and you can maintain positive cash flow.
Generating quotes manually is too time-consuming, especially when you have complex jobs with multiple components and steps. Quoting software saves significant time because you can automatically generate quotes for simple jobs or more complex ones with thousands of components or parts.
When you receive a RFQ (request for quote) in manufacturing the quoting software automatically generates a quote, so they can choose whether to accept or reject it.
What is the best quoting software for manufacturing?
Quoting software works best when it’s part of an enterprise resource planning (ERP) because it can pull in relevant data from across the business, in real-time, to generate accurate costs. MIE Trak Pro is an ERP designed specifically for metal fabricators and other discrete manufacturers, and includes a fully-integrated quoting functionality.
How can quoting software help?
One-click pricing: The software generates instant quotes, saving your team time and enabling them to respond quickly to customers and ultimately win more business. MIE Trak Pro automatically generates a sales order once a customer accepts a quote.
Win/loss ratios: After providing a quote, the software tracks whether a customer has accepted or rejected it. You also get a win/loss ratio, which can be used to identify high-conversion customers or whether you need to adjust your pricing. You’ll also see your quote history for reporting and analysis.
Project size: Whether a job involves just a few parts or is a more complex assembly, the software will generate accurate quotes based on real-time data. Manufacturers can enter thousands of manufactured components or parts, either produced in-house or outsourced, giving you more flexibility as well as creating multiple quotes per item.
How does quoting software save costs?
Quoting software is a good investment because it helps you cut costs in the long-term and price projects accurately, so you’re not underquoting. For example, a project may seem simple enough but you must also factor in unexpected costs, running the machinery and employee wages.
Here are five ways quoting software helps cut costs:
Accuracy
Quotes are more precise when based on real-time cost data and there is less chance of mistakes or miscalculations when the process is automated. You can add finer details like the material thickness or delivery costs to narrow the quote down further too.
Standardized processes
Reliable software helps you standardize quoting, so customers get quotes quickly and consistently. If a customer submitted two similar RFQs but the quotes were miles apart, they may not trust you. Standardized quoting also saves your team time and they won’t need to rely on sales departments to generate quick quotes.
Smart scheduling
Once a customer has accepted a quote, the system automatically produces a work order and schedules it within the ERP. This doesn’t need much manual input, so is an efficient way of working. The job is also scheduled to the right team member and machine to reduce idle time.
Improved profit margins
Quoting software can help you meet your profit objectives because it gives you more visibility and control over your margins on every job. A quote covers all of your costs, adds a buffer in case of unexpected costs like defects or downtime, and highlights the expected profit margin.
Reduces overheads
Time is money in manufacturing – and quoting software enables you to send quotes in minutes as opposed to hours. There is also less chance of mistakes with data entry or calculations because it’s all done automatically.
Benefits of quoting software for metal fabricators
Quoting directly impacts your profitability. You can’t control everything but you can protect your business from financial losses caused by data entry mistakes or miscalculations in the price of materials or labor. Automating the process with quoting software offers benefits including:
- Saves time and effort
- Calculates complex quotes
- Better accuracy because it’s based on current cost data
- Improved profitability
- Enhanced customer satisfaction
The best quoting software
MIE Trak Pro helps you create accurate quotes but it also has many advanced features to optimize your processes and cut costs. Get help from consultants to create formulas to automate the quoting process as well as win/loss ratios for deeper customer insights.
