DM02: Automatic recalculation of dependent Price Lists e.g. region, country, different sales channel

Local Pricing Manager 

Business Objectives:  

Recalculate / Adjust Local / regional List Prices based on local conditions, pricing strategies and global (reference) Price. 

Manual and error-prone processes, calculations are typically done in MS Excel with download and lookup / combining of different data sets without no real audit trail.  

Automatic data gathering, applying pricing strategies for List Price calculation, combined with robust simulation capabilities and ERP integration for seamless execution. 

• Reduce time spent on List Price revision. 

• Eliminate risk of manual errors 

• Improve price realization through simulating and providing more relevant list price recommendations. 

• Aline prices across sales channels  

N/A

N/A

Currently, manual processes are employed, and these tasks are predominantly managed using Excel. This involves downloading and uploading data, often entailing a multitude of formulas and lookups, resulting in manual data combination. Unfortunately, this approach lacks a proper audit trail. The opportunity that Pricefx allows is to implement automated data aggregation to merge datasets while adhering to pricing strategies. These strategies cater to both list prices and customer-specific pricing, incorporating simulation capabilities. Moreover, with Pricefx you can seamlessly integrate this process with your ERP system, thereby eliminating the need for manual data transfers. The anticipated benefits encompass expedited pricing revisions, a notable reduction in manual errors, enhanced price realization, and greater alignment of prices throughout your business.

Let’s get into the solution and delve into the steps for executing these actions.

To illustrate, we will navigate from the homepage to Price setting ➡️ Price list. We will start this process by selecting our 2023 global price list and then proceed to analyze a specific item within it for the purpose of this flow. Presently, the price is set at $11,572 in our price selector. Upon expanding this, we observe that the pricing strategy is based on average competition, resulting in a price of $17,1572.

Now let’s look at a local price list that is dependent on the global one. By selecting the local option, we can see the details of the chosen item: the independent price level is set at $11,572, with a 15% increase linked to the average competition price, resulting in a price of $13,308.

If you want to adjust the dependency level, you can achieve this by navigating to the company processes and the global price setting wizard. Specifically, for this demonstration, we will perform a country-level adjustment for Germany. Within this context, the dependency level is set at 15% for our product group. To modify this, we will add a new dependency level. This change will raise the dependency level to 25%. After making these adjustments, we will save the changes to our table and return to the price list view.

It's important to note that once a price list is approved, direct modifications are not permissible. To make changes, we must first revoke the approval status. Then, we can access the calculate option; this will shift the status to "Pending" upon activation. After a brief moment, the status shifts to "Ready." This calculation process is efficient, given the relatively small number of items (34) in our case.

 By revisiting the item we chose as an example, we find that the independent price level remains unchanged at $11,572, as per the global price list. The pricing strategy also remains consistent. However, due to the adjusted dependency level (now 25%), the independent price undergoes an increase, resulting in a new price of $14,465.

It is crucial to emphasize that an entire price list requires collective approval. After finalizing the adjustments, we can submit the modified price list for approval. The subsequent approval step involves another designated approver, who reviews and either approves or rejects the changes. Upon approval, the modified price becomes live and effective for the specified customer.

Essentially, Pricefx empowers you with the capability to make localized price adjustments while maintaining a dependency on the global pricing structure. Any alterations to the global pricing would trigger automatic recalculations, ensuring that interdependent prices remain coherent and aligned. This feature substantially reduces the need for manual adjustments and enhances the efficiency of pricing management.

This concludes the flow on how to automatically recalculate dependent Price Lists e.g. region, country, different sales channel in Pricefx.