Global Industrial Manufacturing Client
The capital equipment industry tends to be heavily data-centric, with much information being used in R&D, supply chain management, lean manufacturing, and cost management. While this has led to operational efficiencies for many companies, very few have used this same data store to manage configuration and bundling from a List or Net Price perspective.
73% Pass-through on List Price Optimization.
13% Increase in Win Rate.
$27.8 Million dollar increase in Profit in Year 1, post full implementation due to Pricing.
Increased share in 37% of regional markets without margin erosion.
International Logistics Client
As a spread business, international logistics companies maximize profitable growth by procuring lower relative transportation costs and selling at optimal prices to its shipper customers. From a pricing perspective, is unique due to the volatility, high cost, and availability of its key inputs (fuel, capacity), the binary nature of wins and losses in fixed demand markets, the large number and combinations of lanes, pricing structures, competitors, and the multiple channels through which the services sold.
Win rate increases on multiple segments projected to be realized from 7-11%.
Same day, single lane, quote rationalization removes 12% of quote load for specific customer / lane combinations due to perceived “Price Shopping”.
Following statistical customer segmentation, modeled and forecasted price improvement of 4.4% with no reduction in win rates.
Identified 16.4% of customers (18.2% of volume) obtaining and utilizing spot market rates for same day single lane shipment, while under long term contract on the same lane combinations.
Identified (24.4% of Shipments, 21.5% of Weight) Evergreen Contracts (renewal contracts over 24 months of duration) still in use with initial, first price being utilized
Global Connectors and sensors Client
Within the OEM automotive component industry, being a tier-one supplier and manufacturer has intrinsic benefits and crippling drawbacks in the pricing space. The benefit: a significant barrier to entry thus reducing competition, streamlined bidding processes, and stronger protections of IP/patented materials. The supply chain drawbacks include: dominant automotive manufacturers removing leverage from pricing negotiations, additional costs being absorbed due to special manufacturing and packaging requests, and a limited client base also influences volume based selling.
Cut $7.2 million dollars in cost by denying customer exceptions through value communications.
Increased primary vendor recognition status on 42 product lines.
Price increase pass-through rate increased 22% due to reduced failure rate messaging.
New product introduction pricing pass-through rates increased by 8% netting additional $12 million revenue.
Multinational biotech client
Opportunity Statement – Aside from the data leveraging for Price improvement noted above as it relates to the Construction Equipment Industry, data warehouse enhancement can provide other improvement opportunities. Product positioning, whether internal (Good – Better – Best) or external (competitor based value modeling) is another significant area of focus often overlooked in Industrial Equipment Manufacturing. This oversight often leads to improper launch price setting for New Product Introduction during the Stage Gate process. This results in predatory pricing when value is not properly quantified or communicated, and improper internal switchover points as customers choose which features they desire at an attractive price.
Increased world-wide market-share from 64% to 71%. In the key Chinese market, share rose from 23% to nearly 40%.
Reduced mean-time to sale from four weeks to three weeks.
Historical products, now rebranded and aligned, gained back the lost margin and expanded by 1.3% in the first eighteen months.
North american Retail FUel saas Client
Created a real-time/on-demand competitive model that optimizes based on business rules, strategy (micro and macro), competitive movements, and revenue to volume need based assessment. Over 8000 stations are utilizing the model world-wide, with ROI's ranging from 3.4-5.1 depending on ancillary products and strategic decisions.
A modularized, cloud based full analytics platform.
Currently being utilized in over 8,000 gas stations in North America.
Rapidly expanding in use and phase two will bring in value coefficients to better maximized pump and internal (store-side) sales and margin