Product Configurators in Business Central Manufacturing
Customization is no longer a nice-to-have in manufacturing—it’s the norm. Customers expect tailored products, short lead times, and error-free delivery. But for many manufacturers, managing custom or configured products is messy, slow, and error-prone.
If you’re using Microsoft Dynamics 365 Business Central and building anything from custom machinery to tailored furniture, you’ve probably already run into the challenge: how do you scale customization without breaking your internal processes?
That’s where a product configurator comes in—a tool that connects sales, engineering, and production through rule-based logic and automation. If you’re new to the concept, you can start with this breakdown of what a product configurator is and why it matters for manufacturers. Below, we’ll explore how this technology fits perfectly within Business Central and why it’s becoming essential for modern manufacturing.
What a Product Configurator Actually Does
A product configurator is far more than a simple quoting tool. It acts as a bridge between your sales process, engineering requirements, and production capabilities—ensuring every custom order follows the right rules, uses the right materials, and hits the right price point. Whether used by internal teams (sales reps, engineers, customer service) or directly by customers through a web portal, the configurator guides users through selecting features, options, dimensions, and specifications—all while enforcing logic to prevent errors.
Once selections are made, the configurator automatically generates critical backend data like:
- Sales quotes or orders that can be pushed directly into your ERP (like Business Central)
- Bills of Materials (BOMs) tailored to the chosen options
- Routings based on how the product needs to be built
- Production orders and capacity planning details
- Pricing and cost estimates that reflect the configured choices
A well-implemented product configurator replaces manual spreadsheets, disconnected quoting tools, and constant engineering involvement with a streamlined, logic-driven process. It ensures that what gets quoted is accurate, what gets built is possible, and what gets delivered meets customer expectations every time.
How Product Configurators are Used
Product configurators are typically used in three primary ways in Business Central:
- By the Sales Team: The sales and order entry team uses product configurators to create quotes internally to send to clients. These users often rely on the configurator to quickly generate quotes for customers who have called in, sent an email with their requirements, or met with a salesperson in person—sometimes with the quote being prepared on the spot using a tablet or laptop.
- Through an E-Commerce Website: In this model, the product configurator is exposed to the customer via a front-end e-commerce interface, allowing them to configure the product themselves. This approach is often used by businesses with a high volume of configuration options or by companies that want to initiate the configuration process through their website—even if the final quote still needs to be sent by a sales representative.
- By Dealers of the Product Line: Dealers or resellers use the configurator to prepare quotes for their end customers. This is often referred to as a B2B2C (business-to-business-to-consumer) model. In this scenario, the manufacturer provides a dealer portal—a specialized e-commerce site that allows dealers to create and save quotes. These quotes can be customized with the dealer’s logo, contact details, and branding, while hiding the manufacturer’s information. Once the customer accepts the quote, the dealer clicks a button to send it to the manufacturer (the configure-to-order company) for fulfillment.
These three methods of using a product configurator are quite different. Some configurators are built to support use as an e-commerce or dealer portal, while others are not. This distinction is critical: many businesses purchase a configurator expecting to add these features later, only to discover that it is extremely difficult—or even impossible—if the configurator wasn’t designed with that functionality in mind.
The Risks of Not Using a Configurator
When manufacturers rely on manual processes—like spreadsheets, email chains, or tribal knowledge—to manage product variations, several risks emerge that can quietly drain productivity, profit, and customer satisfaction.
- Sales Bottlenecks – Sales reps often need to loop in engineers just to build a quote. This slows down the sales cycle, frustrates both teams, and can result in missed opportunities—especially if your competitors respond faster.
- Frequent Errors – Without clear rules in place, it’s easy to quote combinations that aren’t viable or to miss critical dependencies. Miscommunications between departments often lead to rework, material waste, or lost time on the shop floor.
- Slow Turnaround Times – Quoting complex products manually can take days or even weeks, even if the variations are relatively minor. The more stakeholders involved, the longer it takes to finalize a price and send it to the customer.
- Scalability Issues – As your product catalog grows, the complexity of managing it manually becomes unmanageable. What once worked for a few configurable options quickly breaks down under the weight of hundreds of variations and business rules.
Another major factor is employee skill level. In many cases, companies rely on highly skilled salespeople to quote complex products accurately. When those employees are unavailable—or if less experienced staff are tasked with quoting—mistakes are much more likely.
These issues don’t just impact internal efficiency—they’re felt directly by your customers in the form of delays, confusion, and inconsistent experiences. Without a configurator, your business becomes harder to scale, and your customers feel the friction with every order.
Why Business Central + Configurator Is a Winning Combo
One of the reasons product configurators work so well for manufacturers using Business Central is because the ERP is built to support structured data like BOMs, routings, and production orders. When a configurator is integrated into Business Central, you create a seamless, end-to-end process from quote to cash.
Here’s how the two systems complement each other:
- Real-Time Data – Salespeople and customers configure products using live item, pricing, and availability data from BC.
- Error-Free Output – BOMs and routings push directly to production without re-entry.
- Faster Time to Quote – Eliminate delays caused by back-and-forth between departments.
- Consistent Pricing – Apply complex pricing logic without needing someone to check it manually.
To learn more about how a Business Central product configurator works, we’ve outlined the core features, use cases, and integration options in detail.
If you’re not already using Business Central, you can learn more about Business Central pricing in our comprehensive guide.
Use Cases That Make Sense for Configurators
Product configurators are particularly valuable for manufacturers dealing with complexity—whether that’s a wide range of customizable options, high product variability, or a need for faster quoting and production. If your business involves tailoring products to individual customer requirements, a configurator can be a game-changer.
Here are some common use cases:
- Engineer-to-Order (ETO) – Build-to-spec solutions like industrial equipment or specialized machinery.
- Configure-to-Order (CTO) – Semi-standardized products with optional features, such as HVAC units or cabinetry.
- Make-to-Order (MTO) – Customizable orders that don’t follow fixed SKUs, but still need fast turnaround.
If your products change with nearly every order, or if your sales team struggles to keep up with quoting demands, you’re a perfect candidate for a configurator.
What to Look for in a Business Central-Compatible Configurator
Not all configurators integrate well with Business Central, so it’s important to choose one that fits your workflow. Look for:
- Native Integration – Does it write directly to BOMs, items, routings, and production orders?
- Rule Management – Can business users manage configuration logic, or will you need a developer?
- Performance – Can it handle thousands of combinations without slowing down?
- Scalability – Will it grow with your catalog and product line?
A configurator that’s deeply integrated with Business Central will reduce complexity—not add to it.
Getting Started: Best Practices for Implementation
Implementing a product configurator isn’t something you do overnight—but with the right approach, it can deliver fast ROI. A few best practices:
- Start Small – Pick one high-impact product or product line to configure first.
- Involve Multiple Departments – Sales, engineering, and operations should all contribute to rule-building.
- Plan for Maintenance – Assign ownership to keep rules and data up to date.
- Test Before You Launch – Run sample configurations through the full process to catch issues early.
Honourable Mentions: Two Additional Product Configurator Features
You could include an “Honourable Mentions” section near the bottom of your content to highlight two other valuable—but sometimes overlooked—features of product configurators (in addition to those already discussed above):
1. CAD Integration
CAD integration means the configuration created in the CPQ system can be pushed into CAD software like Autodesk Inventor or SolidWorks. This enables the automatic creation of parametric drawings based on the configured product.
This functionality can dramatically reduce the workload for engineering teams, eliminating the need for them to manually draft drawings for each variation. While it requires effort upfront—engineers must build parametric models specifically for this purpose—it’s a practical and efficient tool that many companies find worthwhile.
2. Proposal Generation
Many product configurators also support proposal generation, allowing you to produce polished, branded quotes automatically.
If your sales process requires including documents like terms and conditions, safety features, or marketing materials—such as product spec sheets or brochures—a configurator with proposal generation can automatically insert these assets into your quote documents.
Solutions with this feature tend to produce more professional-looking proposals. They’re not only faster to generate but also visually appealing and content-rich, improving the customer experience and shortening the sales cycle.
Conclusion: Complexity Doesn’t Have to Slow You Down
If your business is growing—or trying to grow—offering customizable products without a system to manage them will eventually become a roadblock. A product configurator integrated with Business Central can eliminate that bottleneck and give your team the tools to work faster, quote smarter, and build with confidence.
If you’re still learning about what a configurator does, start with this primer on what a product configurator is. And when you’re ready to see how it connects with your ERP, dive into the benefits of a Business Central-integrated configurator.
