Using Product Information to Optimize Gross Profit www.epacube.com Optimizing Gross Margin & Pricing Optimizing Gross Margin & Pricing over continuously cleansed and over continuously cleansed and up to date product data up to date product data Product Data Product Data Cleansing Cleansing Data Data Synchronization Synchronization Data Data Governance Rules Governance Rules Master Master Product Product Database Database Margin Manager Margin Manager Data Data Mapping Mapping epaCUBE
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Using Product Information to Optimize Gross Profit Optimizing Gross Margin & Pricing over continuously cleansed and up to date product.
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Using Product Information to Optimize Gross Profit www.epacube.com
Optimizing Gross Margin & Pricing Optimizing Gross Margin & Pricing over continuously cleansed and over continuously cleansed and
up to date product dataup to date product data
Product DataProduct DataCleansingCleansing
Data Data SynchronizationSynchronization
DataDataGovernance RulesGovernance Rules
MasterMasterProductProduct
DatabaseDatabase
Margin ManagerMargin Manager
DataDataMappingMapping
epaCUBE
Using Product Information to Optimize Gross Profit www.epacube.com
epaCUBE Agenda
• New Pig Pricing Process SummaryNew Pig Pricing Process Summary
Major Goals & Objectives of Pricing ProjectMajor Goals & Objectives of Pricing Project
Competitive Pricing – ExcelProposed Customer Pricing from Excel
Pricing Ingredients
•Cost & Price Calculation Engine
•Impact Analytics
•What if Modeling
•Price Matrix/Book Creation
FlexibilityScalabilityVisibility
Using Product Information to Optimize Gross Profit www.epacube.com
PM’s Strategy
•Each PM was responsible for their line and product pricing. PM suggestions were review by upper management before final price for an items was determined
•Depending on product the prices could be different within product lines, marketing strategy, competitor pricing, etc
•Domestic Direct (NPC) information only reviewed
Pricing Criteria for looking at products/Product Lines
•Cost Increase/Decrease•Estimated Cost increases•Current Margins•Margins raising prices•What Competitors are doing•Competitors pricing for Exact products current year•Competitors pricing for similar products current year•Direction from Domestic Direct (Increase sls by 300k, buy raisingprices)
•Where we are in the market•Market Trends (cost of steel, cost of oil)• Information from vendors (suggest list price)•Sales trends•Customer trends•Do we stock the item or drop-ship•Exclusive to New Pig•Better quality products
Division Pricing Process
By Price type and/or CustomerDepending on what the price type or customer is, divisions involved are
Corp Sls, Blue Ribbon, SK, IDD, INTL, 77 different price types
•Cost Increase/Decrease•Current Price•Current Margins•Affect of raising prices•What Competitors are offering•Notes from previous year•Competitors pricing for Exact products current year•Competitors pricing for similar products current year•Customer trends•Customer’s input•Customers Increase•Contracted prices frozen•Contracted agreements•Compare price types against other Price types•Are we offering the customer the correct price discount•Special pricing on accounts•Special pricing on Price types•Price vs. Listed Prices•Acceptable Margins Company/Division
New Pig Pricing Strategy Ingredients
Using Product Information to Optimize Gross Profit www.epacube.com
Ingredients RecipeEnd
Result
WHATWHAT HOWHOW WHAT YOU GETWHAT YOU GET
Flexibility of epaCUBE Architecture
Cost Ingredients
Rebate Ingredients
Pricing Ingredients
Customer Ingredients
Vendor Ingredients
Competitive information
Product Attribute Ingredients
Actual vs. Forecasted Sales
• Impact Analytics
• What If Modeling
• Price Matrix/BookCreation
Vendor(s)Customer(s)Customer Type(s)Product Price Type(s)Sales – Actual/ForecastedOver what Time Period
etc.
Selection of Ingredients(Which Ones & How Much)
Using Product Information to Optimize Gross Profit www.epacube.com
POTENTIAL COST INGREDIENTS
Job SOURCE Vendor(s) Vendor Name Product Cat(s) Effective Date Prod Lines(s)1 Tend/ICSW ALL ALL ALL ALL ALL2 SPORT ALL ALL ALL 1/1/2008 ALL
POTENTIAL PRICING INGREDIENTS
Job SOURCE Customer(s) Vendor(s) Product Line(s) Effective Date Product Cat(s)Customer SIC
Code Cust TypeProd Price
Types
PD Record
Type1 Trend ALL ALL ALL ALL ALL ALL ALL ALL ALL
epaCUBE Flexibility: Different Ingredients–Different Results
POTENTIAL QUANTITY INGREDIENTS
Job SOURCE Customer(s) Vendor(s) Product Line(s) Effective Date Product Cat(s)Customer SIC
Code Cust TypeProd Price
Types1 Trend/Data Whse ALL ALL ALL ALL ALL ALL ALL ALL
CALCULATION SCENARIO: All the Ingredients to Analyze the IMPACT of…CALCULATION SCENARIO: All the Ingredients to Analyze the IMPACT of…
ALL Supplier Cost ChangesALL Supplier Cost ChangesALL ProductsALL Products
ALL CustomersALL Customers
Using Product Information to Optimize Gross Profit www.epacube.com
POTENTIAL COST INGREDIENTS
Job SOURCE Vendor Name Product Cat(s) Effective Date Prod Lines(s)1 ICSW ACME SUPPLIER ALL ALL ALL2 SPORT ACME SUPPLIER ALL 1/1/2008 ALL3 Supplier Update ABC Supplier ALL ALL ALL4 Supplier Update ACME Supplier 1100, 2200, 3300 7/1/2007 ALL5 Supplier Estimate Wilson Supplier ALL 9/1/2007 ALL6 Supplier Estimate ACME Supplier 3450 ALL ALL
POTENTIAL PRICING INGREDIENTS
Job SOURCE Customer(s) Vendor(s) Product Line(s) Effective Date Product Cat(s)Customer SIC
Code Cust TypeProd Price
Types
PD Record
Type1 SXE ALL ALL ALL ALL ALL ALL ALL ALL ALL2 SXE ALL ALL ALL ALL ALL ALL ALL ALL 43 SXE 12999 ALL ALL 9/1/2007 ALL ALL ALL ALL ALL4 EXCEL 12999 COMPETITOR 110,022,003,300 7/1/2007 ALL 8909-900 BLUE RIBBON ALL 45 EXCEL ALL ACME SUPPLIER ALL ALL ALL ALL INTL ALL ALL
epaCUBE Flexibility: Different Ingredients–Different Results
POTENTIAL QUANTITY INGREDIENTS
Job SOURCE Customer(s) Vendor(s) Product Line(s) Effective Date Product Cat(s)Customer SIC
Code Cust TypeProd Price
Types1 SXE/DW 12999 ALL ALL ALL ALL ALL ALL ALL2 EXCEL FORECAST ALL ALL PL009 ALL ALL ALL ALL ALL3 EXCEL FORECAST 12999 ALL PL010 9/1/2007 ALL ALL ALL ALL4 EXCEL FORECAST 12999 ALL ALL 7/1/2007 ALL 8909-900 BLUE RIBBOB ALL5 EXCEL FORECAST ALL ACME SUPPLIER ALL ALL ALL ALL INTL ALL
CALCULATION SCENARIO: All the Ingredients to Analyze the IMPACT of…CALCULATION SCENARIO: All the Ingredients to Analyze the IMPACT of…
ACME Supplier Cost ChangesACME Supplier Cost ChangesOn Customer 12999 with Competitive Pricing & On Customer 12999 with Competitive Pricing &
Forecasted QuantitiesForecasted Quantities
Using Product Information to Optimize Gross Profit www.epacube.com
ACME VENDOR/ CUST 12999
ALL VENDORS/ALL CUSTOMER
ACME VENDOR/ALL CUSTOMER
VISIBILITY into the IMPACT of CHANGE on Pricing,
Rebates/SPA, Costs, and Gross Margin based on Past, Current
or Future Effective Dates
End Result – Calculation Scenarios
Using Product Information to Optimize Gross Profit www.epacube.com
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AB VENDOR/ CUST 12999
Using Product Information to Optimize Gross Profit www.epacube.com
epaCUBE Architecture & epaCUBE Architecture &
Trend IntegrationTrend Integration
Using Product Information to Optimize Gross Profit www.epacube.com