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Quoting is the bottleneck, not production

By Dr. Richard Schwenke

Co-founder & CEO

Ask a harness manufacturer where their constraint is and you will usually hear about the shop floor: crimp capacity, skilled assemblers, a machine that is booked out. Ask how many inquiries went unanswered last quarter and the room goes quiet. In a lot of assembly shops the real limit on growth is not how fast they can build. It is how fast they can price.

The constraint moved and nobody updated the map

Manufacturing has spent forty years getting better at making things. Production planning, lean, automated crimping, test benches — every one of those made the build faster and more predictable. Quoting received almost none of that attention. It is still, in most shops, one experienced person, a spreadsheet, and a stack of PDFs.

When one part of a system improves for four decades and an adjacent part does not, the constraint moves. That is not a failure of anyone’s judgement; it is simply what happens when investment follows what is easy to measure. Machine utilisation is on a dashboard. “Inquiries we did not get to” is on nobody’s dashboard, because an RFQ that was never quoted leaves no trace in any system.

What a slow quote actually costs

The cost is not the estimator’s hourly rate. It is three other things, all larger.

Orders you never see. Buyers routinely send the same package to several suppliers. Being late is functionally the same as not answering. You do not lose these on price and you never learn why you lost, because you were not in the comparison.

The inquiries you decline. Every shop has a triage rule — too small, too odd, too many positions, from a customer who probably will not order. That rule exists purely because estimating capacity is scarce. It is a rationing decision dressed up as a qualification decision, and it systematically filters out exactly the small first orders that turn into repeat business.

Margin given away for speed. Under time pressure, an estimator does the safe thing: rounds up, adds a buffer, reuses a number from a similar job. Sometimes that costs you the order. Sometimes you win it and find the buffer was pointing the wrong way. Both are symptoms of pricing without time to price properly.

Why this has been so hard to fix

Not for lack of trying. Quoting resisted automation for a specific and honest reason: the input is genuinely unstructured. A harness inquiry arrives as a drawing drawn to one customer’s house convention, a bill of materials in whatever columns their system exports, and an email adding three amendments in prose. Every previous generation of software needed the input to be structured first — which just relocated the manual work to a data-entry step and called it progress.

That is the constraint that actually changed. Reading an ambiguous technical document and turning it into structured lines is now something software can do — not perfectly, not without review, but well enough that a human starts from a complete draft rather than a blank sheet. The work moves from transcription to verification, and verification is far faster than creation.

What changes when pricing stops being scarce

The interesting effects are not the obvious one. Yes, quotes go out faster. But the second- order changes matter more:

  • The triage rule can be relaxed. When quoting a small or awkward job costs an hour instead of a day, you can quote it. The economics of which business is worth pursuing shift.
  • Pricing becomes a company asset instead of a personal one. Rules that lived in one workbook become explicit, which means they can be reviewed, argued about, and improved — and they survive the person who wrote them.
  • Losses become informative. With a traceable cost breakdown, a lost quote tells you which component was uncompetitive. Over a year that is a feedback loop on your pricing, which a spreadsheet has never been able to provide.
  • Estimating stops being a scheduling risk. One person’s holiday no longer throttles the commercial pipeline.

The part that does not change

None of this removes the estimator, and any vendor implying otherwise should be treated with suspicion. Deciding which connector the customer actually meant, whether a tolerance is worth challenging, what margin a strategic account carries — that is domain judgement, and it stays with the person who has it. What automation removes is the three hours of typing that currently stand between that person and the decision they are paid to make.

The shops that will compound an advantage here are not the ones that buy the most software. They are the ones that stop treating quoting as administrative overhead and start treating it as what it demonstrably is: the process that decides how much work enters the building at all.

Frequently asked questions

Why would quoting be a bigger constraint than production capacity?

Because production has absorbed decades of process investment and quoting has not. Machine utilisation is measured and managed; inquiries that were never quoted leave no trace in any system, so the cost stays invisible. In many assembly shops the number of jobs that can be priced per week is lower than the number that could be built.

What does a slow quote actually cost?

Three things beyond the estimator’s time: orders lost because a buyer’s comparison closed before the quote arrived, inquiries declined purely to ration scarce estimating capacity, and margin given away through safety buffers added under time pressure.

Why did earlier quoting software not solve this?

Earlier systems required structured input. A harness inquiry arrives as a drawing in the customer’s own convention, a bill of materials in an arbitrary format, and an email amending both. Requiring structure first moved the manual effort into a data-entry step rather than removing it.

Does automating quoting replace the estimator?

No. Interpretation of ambiguous specifications, decisions about tolerances, and margin calls on strategic accounts remain human judgement. Automation removes the transcription work that precedes those decisions, so the estimator’s time goes to the decisions themselves.

About the author

Dr. Richard Schwenke

Co-founder & CEO

Serial entrepreneur with a track record of building and scaling B2B companies. Previously co-founded Contorion, an industrial supplies platform acquired by Hoffmann Group, and Priceloop, an AI pricing company. Background includes McKinsey and studies at RWTH Aachen, MIT, and JGU Mainz.

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