What does the term "deviation management" mean in CPQ?

Deviation management in CPQ refers to the process of handling exceptions or deviations from standard pricing or product configurations in quotes. This is essential for organizations as it allows flexibility in pricing and product offerings, accommodating unique customer needs or circumstances that may require adjustments to the standard practices.

In many situations, customers may have specific requirements that do not align perfectly with the predefined strategies set by the company. Deviation management helps sales teams effectively address these exceptions while ensuring compliance with overall pricing strategies and margin expectations. It allows for more personalized selling approaches while still maintaining oversight of profitability and pricing integrity.

The other options present narrower views on the role of deviation management. While ensuring quotes match standard pricing might be important for standardization, it does not encompass the broader purpose of managing exceptions. Eliminating all deviations oversimplifies the necessity for flexibility in the sales process, and focusing only on price deviations ignores the importance of product configuration variations, which are also critical to effective quote management.