Transformers of materials and process industry (companies in the chemical, plastic, metal, paper, textile and yarn sectors)
We successfully collaborate on the issues of pricing and active profitability management with some of the most important players operating in sectors such as plastics, chemicals, textiles and yarns, etc.
Value for customers
Material converters operate in a context that is characterized by: high incidence of fluctuations in raw material costs, strong pressure on prices and margins in some segments and high heterogeneity of customers in terms of potential sector and purchase potential.
In this context, pricing and the active management of profitability are a fundamental capability to guarantee competitiveness and better levels of profitability.
Areas of Opportunity
The main decisions and challenges companies need to face to improve profitability and successfully compete on the market.
How to improve profitability with pricing?
By leveraging quantitative models and a more advanced use of data, material converters can significantly improve pricing by increasing profitability and margin mass by up to 4% on turnover
By increasing transparency on real profitability per transaction and per customer and taking into account the main cost-to-serve elements, more informed pricing and commercial decisions are made, thereby improving customer mix and profitability
How can greater transparency on true profitability help us make more informed decisions?
How to progressively increase profitability on existing customers?
The use of quantitative models and indicators help to identify customers and products with the lowest risk of loss (health score) and the greatest potential for improving profitability
How to use machine learning software for pricing and sales decisions?
Through the use of self-service software (e.g. Knime, Rapidminer) it is possible to develop powerful decision support models quickly and at low cost.
How we help our customers
Pricing capability diagnostics
Quantitative / statistical assessment of historical data
Data-driven segmentation development
Business rules and price target
Deal scoring tool
Decision-making processes and delegations
Pricing index metrics
Training
Deployment on ERP / CRM / BI.
Pricing - insight
Development of business rules and pricing guidelines
Training and communication (work-session)
Training on pricing communication / negotiation techniques
Review of delegation processes
Development of pricing skills for the sales force
Customer health score
Alerting models
Price / volume / mix reporting
Prescriptive reporting (customers with other deviations)
Customer profiling based on potential purchase estimate, share of wallet and behavioral variables
Prescriptive models and pricing algorithms
Real profitability per transaction and per customer
Models estimating the customer's purchase potential
Customer micro-profiling on behavioral analysis
Customer profiling (potential / share of wallet
Deployment reporting on Power BI or Qlik View / Sense