master data for better price management

MDM for better Price ManagementJohan Elmqvist

Product Manager, Master Data Management

COPYRIGHT © SYNCRON 2014

Syncron is the global leader in aftermarket service optimization

• Aftermarket Specialist

– Master Data Management

– Price Management

– Inventory management

– Analytics

• Customers are multinational

companies

– Active users in more than 100

countries

– R&D intensive, investing >20% of

revenue

Meet the Presenter:

• 13 years experience of

driving global supply

chain transformation

• Major customer projects:

Scania, Alfa Laval,

Sandvik Material

Technology

Johan ElmqvistProduct Manager, Master Data Management


Faster ROI using Master Data Management is critical first step to developing better price management:

With a strong MDM foundation, you can successfully implement price management solutions, that:

• Quickly achieve ROI goals• Enable cross-selling and up-selling• Grow sales and margin

Single source of truth is starting point for price management

Consistent data drives consistent pricing

Implement value-based pricing using MDM attributes


Structured data, continually updated creates efficiencies of logic and technology for pricing

• Single source provides structure to develop:

– Pricing logic

– Technical implementation

• Uninterrupted implementation:

– Adds systems to MDM without changing

local data

– Avoids lengthy pre-study

– Enables easy integration of new items

and systems

• Combined case for MDM/GPM shows benefits

and ROI to executives

– Gain additional efficiencies from MDM,

like eliminating manual effort

– Enables upsell and cross-sell in CRM

– Better business intelligence

Figure 1: High quality data is critical to the implementation of many higher-level software solutions

Single source of truth

Junk-in, Junk-out: Poor quality data decreases efficiency of any higher-level solution or service


Improved data access and control enable better development and roll-out of pricing solution

• System control of suppliers, users and their

authority to edit data:

– Prevent regional or customer pricing

inconsistencies

– Helps ensure that the same item,

different supplier have same price

• Consistent view across all similar products will

highlight price and margin opportunities

– Links supplier/customer data to items:

• Low cost suppliers

• Price customers on volume

– Grouping similar items, some with high-

margin and some with low margin, helps

identify price increase opportunities

Figure 2: Incoming data is validated before being pushed to other users or systems

Consistent data and pricing

Local Data

Data Owner?

MASTER DATA MANAGEMENT

Updated in all systems for all users

Local Data


Improved data access and control enable better development and roll-out of pricing solution

• Drive upsell and cross sell opportunities of

higher margin items

– Provide justification for higher quality,

more expensive item (exp. high

pressure capacity or lower

consumption costs)

– Identify connections between items

that create opportunities for more

sales (exp. customers that buy this

filter typically replace this washer)

Consistent data and pricing


MDM taxonomy is leveraged to build pricing logic and demonstrate superior value to the customer

Value-based pricing using

attributes

• Standard taxonomy right out of the box allows quick classification

– Aftermarket expertise and industry focus means taxonomy is transferable from company-to-company

– Flexibility to customize for unique customer classifications

Figure 3: Tire classification demonstrates how taxonomy simplifies price differentiation

All Tires

Certified Winter Summer

Winter usedrives price up

Certification further increase price


For Value Based Pricing, the better the data is the more accurate price can be set.

Value-based pricing using

attributes

• MDM structure allows price management solution to:

– Implement sophisticated, differentiated pricing policies, like value-based pricing

– Apply existing taxonomy to new item which replace discontinued item

– Automatic update of interconnected price lists

– Simulate price revisions for product groups

• MDM drives faster price management results, including:

– Increased profitability for spare parts without impacting sales volume

– Spot and correct inconsistent pricing across product lines, customers and sales channels

– Decrease Price complaints decrease because price is:

• Consistent across the company

• Justified by value-based attributes

– Analyze and respond faster to market change


Faster ROI using Master Data Management is critical first step to developing better price management:

Single source of truth is starting point for price management

Consistent data drives consistent pricing

Implement value-based pricing using MDM attributes

Questions

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Software

price management solutions

price revisions

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price managementwith

price complaints

price consistent view

incoming data

changinglocal data