In this use case we are looking at how to setup and update customer specific pricing framework by customer segment and product. Setting up and updating customer-specific pricing frameworks can be a breeze with Pricefx's Rebates and Agreements feature that allows for tailored pricing structures. In Pricefx pricing structures can be easily updated to help distributors stay ahead of the competition.
Use Case Situation Description
User Role:
Pricing Manager
Business Objective:
Flexibly set a customer specific pricing framework to provide a standard discount based on objective criteria.
Typically, these criteria are set based on customer attributes, such as geography, customer class, or customer type. Further, it usually is also based on specific criteria/behavior by the customer, such as the revenue, share of wallet, and cost to serve. In addition, companies may differ based on a combination of customer and product attributes as well or have a framework with multiple steps and discount types. These frameworks may be iterated year over year where flexibility on different discount types and levels of granularity are required.
Complications:
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Existing tools do not provide the flexibility needed to set the pricing rules.
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No global transparency on how each attribute drives the pricing decision.
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Lack of capabilities to calculate the potential impact of a CSP discount.
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Inefficiencies and risk for failure due to manual calculation and upload of conditions
Capabilities needed:
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Create the framework flexible on any level of customer and product granularity.
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Automatic conversion from the framework in the pricing tool into conditions with the ERP
access sequence
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Simulate the impact of a customer specific pricing rule.
Benefit:
Flexibly simulate and set discount frameworks according to business needs without worrying about limitations due to existing ERP structures
KPIs:
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Exceptions from standard customer discount framework
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Time needed to generate customer frameworks and upload conditions into ERP
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