Our client is an €800M global business supplying coating and process technologies for the automotive repair market through direct and independent distributor channels.
BI Consulting was tasked with developing a robust process to manage and implement pricing consistently across all countries and segments for the EMEA business unit with €350M in annual revenues.
Pricing and Margin Optimisation
- Client: Automotive Coatings
- Location: EMEA
- Date: June 2017
- Category: Pricing and Margin Optimisation
• Sales teams making key pricing decisions in isolation of each other • No consistency country to country, impacting multinational customers • How to move sales mix to more profitable products • Ever growing SKU count with long product tail
• Introduced pricing management team • Brought consistency to pricing decisions across brands, sub-brands and territories • Identified and stopped duplicated rebates at multinational customers • Used resulting data to proactively manage and optimise SKU assortment • Cost-to-serve reduced by adjusting service levels of less profitable customers
• Consistent ½% GM improvement every year • Margins improved at multinational and multi-location customers • Service levels (cost-to-serve) aligned to customer GM generation • SKU count reduced by 20% despite new ranges being introduced