Q&A: Navigating the Complexities of Pricing and Quoting

Following on from our blog, 'The Pricing Puzzle: Why Quoting in Corrugated Manufacturing Needs to Change', we sat down with Andrew Bennett.

Here, we discuss how technology can ease some of these burdens and create more streamlined, efficient operations.

Andrew has over 15 years of experience working with manufacturers to optimize processes and improve overall business performance.

Here’s what he had to say.

Q: Andrew, the corrugated industry faces many challenges today, especially regarding pricing, quoting, and production efficiency.

What do you see as the most pressing issues manufacturers are facing in this area?

AB: Managing the complexity of pricing and quoting is a challenge for many manufacturers. It’s an incredibly high-volume, commodity-driven business where margins are already tight, so it’s crucial for manufacturers to get that quote just right.

A small error, whether in production time, material costs, or labor, can throw off the entire pricing model and impact profitability. A lot of this is still done manually or with spreadsheets, and it’s easy for small errors or assumptions to creep in. This can lead to misquotes, lost margins, or worse, missed opportunities.

Q: It sounds like manual processes can really increase the risk of errors. What impact does that have on manufacturers?

AB: Absolutely. When you’re quoting, even a tiny mistake can cost you. Whether it’s underpricing a job or miscalculating the time needed to complete a batch, those errors hurt your bottom line and can also affect relationships with clients.

In such a competitive space, getting the price wrong could result in losing a deal to a competitor who has a more accurate and efficient process. Beyond that, it also adds to the workload for your team, creating more pressure and leaving less time to focus on other critical parts of the business.

Q: Where do you see technology stepping in to solve these problems?

AB: Technology is absolutely transforming the way manufacturers approach pricing challenges. For starters, automated pricing and quoting systems can eliminate the guesswork and make the process much faster and more accurate. By integrating production data and historical performance into these systems, manufacturers can set prices that reflect actual costs rather than relying on gut feel or manual calculations.

Q: How can manufacturers improve this situation without adding complexity to their operations?

AB: The key is automation and integration. There’s a lot of technology available now that can help streamline the pricing and quoting process. By automating data entry and integrating systems - like a good ERP solution - you can reduce the reliance on manual calculations. This not only speeds up the process but also ensures consistency and accuracy.

With these tools, you can easily pull in real-time data, whether it’s about material costs or production schedules, and have everything aligned so you’re quoting from a reliable foundation.

Q: How does automation improve pricing and quoting accuracy?

AB: Automation takes the guesswork out of the equation. Instead of relying on someone's memory or manual entry, you can automate cost calculations based on pre-set formulas, current material prices, and production schedules. This means that every quote is based on up-to-date and accurate information.

Plus, with an integrated system, you're able to track any changes in the supply chain or production timelines that might affect the price. This level of visibility reduces errors, speeds up turnaround times, and ultimately helps you provide more competitive, precise quotes.

One of the biggest advantages of automation is the ability to scale operations without proportional increases in labor costs. As the industry experiences increased demand, automation makes it easier to handle that increased volume without compromising profitability.

Q: With the competitive pressures in the industry, is it possible for companies to maintain profitability with more accurate pricing?

AB: Definitely. In fact, it’s essential for long-term sustainability. While it might seem like technology or automation could add extra costs, the reality is that the savings and efficiencies they bring in the form of reduced waste, fewer errors, and more accurate quotes far outweigh those initial investments.

By quoting accurately, you protect your margins, maintain customer trust, and are better positioned to handle pricing fluctuations in materials or changes in customer demands. When you're operating more efficiently, it gives you a competitive edge, and you're more likely to secure repeat business - ultimately improving profitability.

Q: How do you see the future of quoting and pricing in the corrugated industry?

AB: The future is leaning towards more advanced automation. As artificial intelligence (AI) and machine learning evolve, we’ll see smarter systems that can predict costs and automatically adjust quotes based on historical data, trends, and even environmental factors.

The key for manufacturers will be staying ahead of these changes, embracing new technologies, and continuously optimizing their systems. If you’re already using automation to streamline pricing and quotes, you’ll be in a strong position to take advantage of these advancements in the future.

Q: What advice would you give to corrugated manufacturers who are hesitant to adopt new technology?

AB: My advice would be: start small, but start now. You don’t need to overhaul your entire operation overnight. There are scalable solutions that can be implemented progressively. For example, start with an automated quoting system or real-time machine monitoring, and once you see the benefits, you can expand from there.

The key is not to be intimidated by the technology itself but to view it as a tool that will make your life easier and your operations more efficient. The sooner you adopt, the sooner you’ll see a return on investment. Plus, staying ahead of the curve with technology gives you a competitive advantage, both in terms of operational efficiency and market position.

Conclusion

The challenges around pricing, estimating, and quoting in the corrugated packaging industry are clear, but the solutions are becoming more accessible. By embracing technology and automating these processes, manufacturers can reduce errors, improve accuracy, and boost their competitive edge.

As Andrew has highlighted, staying ahead with the right tools can make all the difference in improving profitability while navigating the complexities of a high-volume, commodity-driven business.

Let us know what challenges you’re facing in your operations, and feel free to reach out to discuss how technology can make a tangible difference for your business.

Ready to take the guesswork out of quoting?

Watch our on-demand demo of Quick Quote and see how automation can transform your pricing accuracy, speed, and profitability.