Managing 5,000 products by hand
As the company grew and expanded, pricing processes became increasingly complex and manually intensive. Manual pricing workflows involved gathering, cleansing, and analyzing data from various sources, resulting in slow response times and costly errors.
The pricing team faced growing difficulty in managing the supply chain for 5,000 products across numerous customers' programs, leading to delays, inefficiencies, and missed opportunities.
“Our current manual processes are getting more complex as our business evolves.”
— Pricing Director, automotive distributor
To stay competitive and respond swiftly to market demands, they recognized the need for a technological solution to streamline operations, improve accuracy, and drive better business outcomes.
Automating processes to focus on value-driven pricing
To address these challenges, the company partnered with Pricefx. The goal was to implement a solution that could automate key pricing processes. Automation was crucial for a business involved in large-scale product supply to further improve strategic decision-making, and allow the pricing team to focus on more value-driven activities rather than manual data management.
Primary objectives:
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Reduce manual effort in data gathering, cleansing, and analysis.
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Enhance analytics and reporting capabilities for improved decision-making.
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Manage prices for 5,000 products across multiple programs, including SKU-level management.
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Leverage pricing strategies to optimize inventory and drive volume.
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Analytics provides pricing insights into their customer and product performance, offering a true waterfall and allowing them to see the impact of pricing.
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Price Setting enables sophisticated pricing strategies, large-scale price adjustments, and approval workflows for exceptions.
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AI Optimization allows for impact modeling of price changes, cost adjustments, and inventory positions, giving the team more control over pricing decisions.
Primary capabilities:
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Analytics provides pricing insights into their customer and product performance, offering a true waterfall and allowing them to see the impact of pricing.
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Price Setting enables sophisticated pricing strategies, large-scale price adjustments, and approval workflows for exceptions.
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AI Optimization allows for impact modeling of price changes, cost adjustments, and inventory positions, giving the team more control over pricing decisions.
Significant gains three months post-implementation
Just three months after implementing Pricefx, the company saw dramatic improvements in key business metrics:
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Revenue growth: The core program, which adopted Pricefx, experienced a 6.44% improvement in revenue compared to customers' programs still using legacy pricing processes.
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Gross margin improvement: The core program also saw a 13.1% increase in gross margin, highlighting the impact of optimized pricing strategies.
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Margin percentage: The company's margin percentage improved by 144 basis points for the customers' programs utilizing Pricefx compared to legacy pricing process.
“User adoption has been great, and we are seeing huge benefits from the tool already. The efficiency from December to January was a huge jump, and the filtering capabilities are making our lives so much easier. The team is impressed with how easy and fast the tool is and is excited to use the new software.”
— Pricing Director, automotive distributor
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David Pacut, Pricefx, Senior brand and creative lead
