Client: A $125 million company ERP migration
Client was converting from a legacy to a new ERP software system. Client wanted to update all pricing records, eliminate counter-productive pricing and import pricing records into new ERP system. Work needed to be completed in 90 days to coincide with software conversion.
Client imported, tested and trained personnel on new pricing system in 75 days. In the first year after sales coaching the new pricing system increased profit margin by 3 points. Margin has continued to increase in years two and three.
Client was mid-way through a program to implement their new ERP system when they ran into the roadblock of importing their legacy pricing into the new system. The pressure to go live on time, combined with a desire to improve margin led the company to contact the Profit2 margin consultants after receiving a recommendation from another user of their new operating system.
The company had traditionally given their branches full autonomy to make pricing decisions. Pricing methodology and margin results varied greatly from branch to branch. Pricing for a customer for the same item would vary by branch. Customers would “shop” an item at multiple branches to obtain the best price. Most customer quotes were verbal and had not been entered into their system. Hundreds of thousands of unused pricing records intended for volume purchasers clogged the system.
Company margin had remained stagnant for years. Improvements in cost achieved by purchasing had not improved profits. Executives were in search of a means of remaining competitive while improving earnings.
The client was able to go live on schedule with a new pricing system that …
- Preserved the branches role in major pricing decisions
- Enabled executives to exert more strategic control over pricing
- Provided consistent distributor pricing to customers with multiple locations
- Made preparing and archiving quotations simpler
- Improved Field and Inside Sales Pricing Skills
- Keeps pricing up to date
- Gives executives a means to increase margin year after year