Company
A Fortune-500 company offering a wide-ranging portfolio of products, digital solutions, and services across several countries globally.
Annual Revenue Range: >$1B
Industry: Industrial Manufacturing
Locations: North America, Europe, Africa, Asia, Latin America
Deployed Solution(s): Vistaar SmartQuote, Vistaar SmartOptimization
Business Challenges
- With millions of configurable and made-to-order products catering to over 15,000 customers across several strategic channels, the company found itself grappling with the complexities of price management and control.
- Inconsistencies in pricing policies often left sales teams at a crossroads, resorting to subjective discounting practices driven by intuition and market pressures rather than strategic insights into their customers’ willingness to pay. This led to missed opportunities for maximizing revenue and cultivating long-term customer relationships.
- Furthermore, the absence of sophisticated price simulation tools and cumbersome manual approval processes created bottlenecks in securing timely pricing approvals for special price agreements (SPAs) and projects. As a result, customer experiences suffered, triggering a notable downturn in win rates, and threatening the company’s bottom line.
Vistaar Solution Highlights
- Optimized B2B pricing across multiple channels.
- Seamless real-time integration with Distributor Quote management system and in-house CRM system.
- Targeted price guidance using AI/ML, optimized to meet business objectives.
- Reviewed pricing opportunity and optimized price corridor for sales negotiation, override of pricing guidelines and on-demand optimization runs. • Impact simulation using estimated price elasticity by customer and product segment.
- Price effectiveness analysis, margin maximization-based price guidance, and real time price recommendation for long-term and short-term customer contracts.
- User-managed best practices and a configurable multi-level Approval Workflow for Quotes and Agreements based on deviation from recommended prices, estimated margin levels, total quote value, among others.
Sources of value
The broad objectives of their pricing journey were to industrialize pricing processes across geographies, business units and their customer base, with a focus on improving pricing outcomes, creating efficiency gains, and forming a value-based pricing process.
Using Vistaar’s SmartQuote and SmartOptimization solutions empowered users to embrace scalable pricing methodologies, standardize communications and workflows, automate price publishing and distribution, and maintain meticulous oversight through comprehensive audit and tracking capabilities.
Furthermore, Vistaar’s AI/ML-powered optimized and transparent price guidance seamlessly integrated strategic business objectives and constraints into pricing strategies, fostering enduring growth and widespread adoption throughout the organization.
