What does lead time in CPQ refer to?

Lead time in CPQ (Configure, Price, Quote) refers to the period required to fulfill an order after a quote is accepted. This concept is critical in managing customer expectations and ensuring that the delivery process aligns with the commitments made during the quoting stage. It encompasses the steps necessary to process the order, such as sourcing materials, manufacturing, and logistics, ensuring that the product reaches the customer within the promised timeframe.

Understanding lead time is essential for both sales and operations teams, as it directly impacts customer satisfaction and business efficiency. By accurately estimating lead times, companies can provide reliable quotes that consider the necessary production and delivery schedules, helping to streamline operations and enhance customer relationships.