In this scenario we are looking at how Pricefx can help distributors improve their pricing with the help of market feedback monitoring through price realization analytics. This is particularly important as the distribution market is volatile and strongly dependant on external factors. Making sure that you keep up with all the changes and adapt your pricing quickly and effectively is paramount for not only the survival of the fittest, but to drive growth and profitability.
Use Case Situation Description
User Role:
Pricing Analyst/Manager, Product Manager
Business Objective:
Pricing and product teams will make decisions that require review and long-term tracking. When price changes occur based on costs, market changes, competition, and other factors, analyst and management teams will want to understand the impact.
Complication:
· Lack of visibility into impact of price changes
· Lack of visibility into category and SKU/customer basis
· Difficult to have a single view of direction of business/customer health
Capability Needed:
· High level customer health scoring and trending
· Detailed understanding of customer level waterfall
· Realization impact of price changes
· Long-term tracking of volume, price, margin
Benefit:
· Real-time visibility into price action results
· Customer level / category level insights
KPI:
Gross margin change. This can be measured at the account level, or at higher levels in the enterprise (product, market, geography, or total business).