Price, Profit, and Projection
SCAPlanner offers an enterprise price planning solution that aligns pricing with their customers's price stability needs and margin management goals.
The Need
Manufacturers and buyers experience significant risk from the pressures of market volatility. Market volatility can come from demand, from supply sources or from price of commodities. On the one hand, they must price their products competitively to maintain the customer loyalty and thus support their brand. They must not only offer competitive prices for their products but also ensure that the price volatility for the consumers does not confuse the customer where it may harm the brand. This means changing prices less frequently. On the other hand, they can also not risk pricing their products low as this can affect their quarterly earnings significantly.
The Solution
Companies need a forward looking ability to price their products in anticipation of the commodity costs, their markets and the margins that will result. A planning solution provides a rolling forecast framework except it focuses on the costs along with the volumes. Purchasing and vendors provide forward looking commodity costs, treasury provides any hedging positions, sales and marketing provides the sales forecasts and operations provides the inventory data (and price). The pricing team can now use these inputs to see the impact of price levels that they set. They can visualize the impact on the prices on margins for their products. They can also do more targeted pricing with an eye on the overall business unit. They can price products FOB, landed etc. for the pricing term duration and manage these towards maintaining the overall business unit margins.
The pricing can then be used to provide finance departments with the overall cost changes and price changes and its potential impact for the business. This allows finance to anticipate market trends and provide necessary corrections to support margin analysis and manage cash-flow.
The Benefits
- Price stability for customers and end consumers
- Forward looking Profit management for the company
- Greater integration and productivity between purchasing, treasury and sales
"SCA's pricing solution is a great example of the power of collaboration where management can use new methodologies to manage new challenges in the marketplace today. As a leader in our business, we want to give the best price solution to our stores and SCA's pricing solution has enabled this goal"
VP Supply Chain, A Fortune 500 food company
Solution Details
- Configurable business process to match your organizations process
- Integration with your enterprise system
- Web based solution
