Leveraging Pricing Analytics to Improve Profitability & Market Share
About the Client:
Our client is a leading global manufacturer of coatings for light OEM vehicles, commercial vehicles, industrial and refinish applications. Spread across 130 countries with nearly 100,000 customers, they provide innovative, colorful and sustainable solutions, designed to prevent corrosion, increase productivity and enable the materials coat to last longer.
There was a business need to have visibility to the pricing information across product groups, distribution channels and regions to perform effective monitoring and optimization of global pricing strategy. The existing reporting had multiple limitations due to:
- Large data volumes involving multiple products, customers and millions of transactions.
- Time-consuming and resource intensive data collection processes.
- Unavailability of granular level data (at individual product/customer level) for detailed analysis.
- Complex business rules related to the various pricing buckets involving several calculations and aggregations.
- Manual reporting processes leading to delays in report generation.
TekLink experts implemented a centralized analytics solution to provide a detailed analysis of pricing data to support global pricing strategy. The solution also added flexibility to accommodate and customize regional expectations.
- Built an analytics foundation to bring transparency to the pricing process and enabled real-time reporting on pricing data and to determine the erosion of pricing across various buckets (such as discounts, adjustments, commissions..)
- Overall solution has been developed to provide a flexible environment, where application processing can be customized as per local (regional) business needs, based on business rules and accommodate changes on an ongoing basis.
- Designed solution with extensive and specialized HANA development including multiple levels of views and calculations, dynamic SQL scripts, stored procedures etc, with each combination of which caters to a specific business scenario.
- Leveraged data from EDW in combination with various offline data to gain a holistic view.
- Defined flexible determination logic for various pricing erosion buckets.
Outcome and Benefits:
The Pricing Analytics solution implemented by TekLink helped the client to set the optimal price at customer and product level with data driven pricing strategies. It also helped to
- Identify revenue leakages and potential opportunities for revenue or margin improvements across regions
- View and manage pricing strategy at transaction level to improve profitability & market share
- Closely monitor the various pricing buckets and their impact on margin
- Increase the efficiency and effectiveness of sales negotiations enabled by data driven strategies and globally aligned sales processes & capabilities
Contact Us to learn more about this experience.