Centralised pricing

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