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Data Synchronization. Master Product Database. epaCUBE. Data Governance Rules. Data Mapping. Product Data Cleansing. Margin Manager. Optimizing Gross Margin & Pricing over continuously cleansed and up to date product data. epaCUBE Agenda. New Pig Pricing Process Summary - PowerPoint PPT Presentation
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Using Product Information to Optimize Gross Profit www.epacube.com
Optimizing Gross Margin & Pricing Optimizing Gross Margin & Pricing over continuously cleansed and over continuously cleansed and
up to date product dataup to date product data
Product DataProduct DataCleansingCleansing
Data Data SynchronizationSynchronization
DataDataGovernance RulesGovernance Rules
MasterMasterProductProduct
DatabaseDatabase
Margin ManagerMargin Manager
DataDataMappingMapping
epaCUBE
Using Product Information to Optimize Gross Profit www.epacube.com
epaCUBE Agenda
• New Pig Pricing Process SummaryNew Pig Pricing Process Summary
Major Goals & Objectives of Pricing ProjectMajor Goals & Objectives of Pricing Project
• epaCUBE Margin Manager DemonstrationepaCUBE Margin Manager Demonstration
• epaCUBE Architecture & Trend IntegrationepaCUBE Architecture & Trend Integration
Using Product Information to Optimize Gross Profit www.epacube.com
New Pig New Pig
Pricing Process SummaryPricing Process Summary
Major Goals & ObjectivesMajor Goals & Objectives
Using Product Information to Optimize Gross Profit www.epacube.com
TrendPricing/CostingSpreadsheets
Created/Updated
Divisions
FinalDomestic
DirectPricing
SharedDirectory
Of Pricing/CostingSpreadsheets
Cost/PriceUpdatesChanges
PMPricingProcess
New Pig – Current Pricing Process Summarized
ReviewBy Price Type
Customer
DIVPricingProcess
FinalDivisionPricing
New PigSPORT
Vendor CostUpdates
Using Product Information to Optimize Gross Profit www.epacube.com
Trend epaCUBE
DomesticDirect
Pricing
DivisionalPricing
New Pig SPORT
Major Goals:
Pricing Management Flow with epaCUBE
• Build on/Learn from Current Pricing Process
• Reduce time, labor cost in Pricing Process
– Create Parallel Processes where possible
• Create On-Line System to Automate & Streamline Process
• Model the “EFFECT OF CHANGE” - before LIVE System Processing
• Add Flexibility to Process
• Add Visibility to Process (at all levels) for Better Decision Making
Using Product Information to Optimize Gross Profit www.epacube.com
epaCUBE Architecture Overview and DemonstrationepaCUBE Architecture Overview and Demonstration
Using Product Information to Optimize Gross Profit www.epacube.com
(3) Critical IngredientsCritical Ingredients for Accurate Cost, Price and Margin Modeling
TrendSPORT
VendorsContent ProvidersYour Own Systems
Mergers & Acquisitions
Costing Ingredients
Tre
nd Data
Whse
Trend – Sales ManagerTrend – Data Warehouse
Forecast – Excel Spreadsheet
Unit Quantities
Tre
nd
Trend - Price Discount RecordsTrend - Rebate RecordTrend – Price Sheets
Competitive Pricing – ExcelProposed Customer Pricing from Excel
Pricing Ingredients
•Cost & Price Calculation Engine
•Impact Analytics
•What if Modeling
•Price Matrix/Book Creation
FlexibilityScalabilityVisibility
Using Product Information to Optimize Gross Profit www.epacube.com
PM’s Strategy
•Each PM was responsible for their line and product pricing. PM suggestions were review by upper management before final price for an items was determined
•Depending on product the prices could be different within product lines, marketing strategy, competitor pricing, etc
•Domestic Direct (NPC) information only reviewed
Pricing Criteria for looking at products/Product Lines
•Cost Increase/Decrease•Estimated Cost increases•Current Margins•Margins raising prices•What Competitors are doing•Competitors pricing for Exact products current year•Competitors pricing for similar products current year•Direction from Domestic Direct (Increase sls by 300k, buy raisingprices)
•Where we are in the market•Market Trends (cost of steel, cost of oil)• Information from vendors (suggest list price)•Sales trends•Customer trends•Do we stock the item or drop-ship•Exclusive to New Pig•Better quality products
Division Pricing Process
By Price type and/or CustomerDepending on what the price type or customer is, divisions involved are
Corp Sls, Blue Ribbon, SK, IDD, INTL, 77 different price types
•Cost Increase/Decrease•Current Price•Current Margins•Affect of raising prices•What Competitors are offering•Notes from previous year•Competitors pricing for Exact products current year•Competitors pricing for similar products current year•Customer trends•Customer’s input•Customers Increase•Contracted prices frozen•Contracted agreements•Compare price types against other Price types•Are we offering the customer the correct price discount•Special pricing on accounts•Special pricing on Price types•Price vs. Listed Prices•Acceptable Margins Company/Division
New Pig Pricing Strategy Ingredients
Using Product Information to Optimize Gross Profit www.epacube.com
Ingredients RecipeEnd
Result
WHATWHAT HOWHOW WHAT YOU GETWHAT YOU GET
Flexibility of epaCUBE Architecture
Cost Ingredients
Rebate Ingredients
Pricing Ingredients
Customer Ingredients
Vendor Ingredients
Competitive information
Product Attribute Ingredients
Actual vs. Forecasted Sales
• Impact Analytics
• What If Modeling
• Price Matrix/BookCreation
Vendor(s)Customer(s)Customer Type(s)Product Price Type(s)Sales – Actual/ForecastedOver what Time Period
etc.
Selection of Ingredients(Which Ones & How Much)
Using Product Information to Optimize Gross Profit www.epacube.com
POTENTIAL COST INGREDIENTS
Job SOURCE Vendor(s) Vendor Name Product Cat(s) Effective Date Prod Lines(s)1 Tend/ICSW ALL ALL ALL ALL ALL2 SPORT ALL ALL ALL 1/1/2008 ALL
POTENTIAL PRICING INGREDIENTS
Job SOURCE Customer(s) Vendor(s) Product Line(s) Effective Date Product Cat(s)Customer SIC
Code Cust TypeProd Price
Types
PD Record
Type1 Trend ALL ALL ALL ALL ALL ALL ALL ALL ALL
epaCUBE Flexibility: Different Ingredients–Different Results
POTENTIAL QUANTITY INGREDIENTS
Job SOURCE Customer(s) Vendor(s) Product Line(s) Effective Date Product Cat(s)Customer SIC
Code Cust TypeProd Price
Types1 Trend/Data Whse ALL ALL ALL ALL ALL ALL ALL ALL
CALCULATION SCENARIO: All the Ingredients to Analyze the IMPACT of…CALCULATION SCENARIO: All the Ingredients to Analyze the IMPACT of…
ALL Supplier Cost ChangesALL Supplier Cost ChangesALL ProductsALL Products
ALL CustomersALL Customers
Using Product Information to Optimize Gross Profit www.epacube.com
POTENTIAL COST INGREDIENTS
Job SOURCE Vendor Name Product Cat(s) Effective Date Prod Lines(s)1 ICSW ACME SUPPLIER ALL ALL ALL2 SPORT ACME SUPPLIER ALL 1/1/2008 ALL3 Supplier Update ABC Supplier ALL ALL ALL4 Supplier Update ACME Supplier 1100, 2200, 3300 7/1/2007 ALL5 Supplier Estimate Wilson Supplier ALL 9/1/2007 ALL6 Supplier Estimate ACME Supplier 3450 ALL ALL
POTENTIAL PRICING INGREDIENTS
Job SOURCE Customer(s) Vendor(s) Product Line(s) Effective Date Product Cat(s)Customer SIC
Code Cust TypeProd Price
Types
PD Record
Type1 SXE ALL ALL ALL ALL ALL ALL ALL ALL ALL2 SXE ALL ALL ALL ALL ALL ALL ALL ALL 43 SXE 12999 ALL ALL 9/1/2007 ALL ALL ALL ALL ALL4 EXCEL 12999 COMPETITOR 110,022,003,300 7/1/2007 ALL 8909-900 BLUE RIBBON ALL 45 EXCEL ALL ACME SUPPLIER ALL ALL ALL ALL INTL ALL ALL
epaCUBE Flexibility: Different Ingredients–Different Results
POTENTIAL QUANTITY INGREDIENTS
Job SOURCE Customer(s) Vendor(s) Product Line(s) Effective Date Product Cat(s)Customer SIC
Code Cust TypeProd Price
Types1 SXE/DW 12999 ALL ALL ALL ALL ALL ALL ALL2 EXCEL FORECAST ALL ALL PL009 ALL ALL ALL ALL ALL3 EXCEL FORECAST 12999 ALL PL010 9/1/2007 ALL ALL ALL ALL4 EXCEL FORECAST 12999 ALL ALL 7/1/2007 ALL 8909-900 BLUE RIBBOB ALL5 EXCEL FORECAST ALL ACME SUPPLIER ALL ALL ALL ALL INTL ALL
CALCULATION SCENARIO: All the Ingredients to Analyze the IMPACT of…CALCULATION SCENARIO: All the Ingredients to Analyze the IMPACT of…
ACME Supplier Cost ChangesACME Supplier Cost ChangesOn Customer 12999 with Competitive Pricing & On Customer 12999 with Competitive Pricing &
Forecasted QuantitiesForecasted Quantities
Using Product Information to Optimize Gross Profit www.epacube.com
ACME VENDOR/ CUST 12999
ALL VENDORS/ALL CUSTOMER
ACME VENDOR/ALL CUSTOMER
VISIBILITY into the IMPACT of CHANGE on Pricing,
Rebates/SPA, Costs, and Gross Margin based on Past, Current
or Future Effective Dates
End Result – Calculation Scenarios
Using Product Information to Optimize Gross Profit www.epacube.com
25
AB VENDOR/ CUST 12999
Using Product Information to Optimize Gross Profit www.epacube.com
epaCUBE Architecture & epaCUBE Architecture &
Trend IntegrationTrend Integration
Using Product Information to Optimize Gross Profit www.epacube.com
Tre
nd
/SX
EC
on
nec
tor
Trend/SX.eepaCUBEMS SQL
Database
epaCUBESynchronizer
epaCUBEMargin Manager
epaCUBE/Trend Data Flow
Costing/Pricing Records
ICSP, ICSW, ICSCPDSC & PDSR – CHUI
PDSP – GUIPrice Sheets
Custom Pricing
Sources of Product & Costing
Data
- Cost & Price Records loaded
- Vendor Cost Changes loaded
- Results of Margin Manager loadedinto Trend/SX.e
Final Prices loadedInto Production
NewPig
SPORT
epaCUBEProduct Information
Manager(MS-SQL)
Sy
nc
hro
niz
er
- Impact & What If Analysis
ICSW CostsPDSCPDSR
Custom
ICSW CostsPDSCPDSR
Custom
-Other Ingredients Loaded (i.e. Forecast, Competitive Pricing)
Using Product Information to Optimize Gross Profit www.epacube.com
New Pig New Pig
Phased Approach toPhased Approach to
epaCUBEepaCUBE
ImplementationImplementation
Using Product Information to Optimize Gross Profit www.epacube.com
JUNE JULY AUG SEPT OCT NOV DEC
Domestic DirectPricing Process
Divisional PricingProcess
Trend
Costing/Unit Sales
epaC
UB
EC
on
nec
tor
epaCUBEMargin Manager
epaCUBE Synchronizer & Product Manager Database
Pricing
“Domestic Impact/What If Visibility by Prod Line/Prod”
BS PM
Phased/Parallel Approach to epaCUBE ImplementationPhase 1: Impact/What If VISIBILITY-No Change to Process
DIV
“Divisional Impact/What If Visibility by Cust/Cust Type/
Prod Price Type/Prod Line/Market, etc”
PMCHANGES
WA/JP
DIVCHANGES
Using Product Information to Optimize Gross Profit www.epacube.com
JUNE JULY AUG SEPT OCT NOV DEC
Domestic DirectPricing Process
Divisional PricingProcess
Trend
Phased/Parallel Approach to epaCUBE ImplementationPhase 2: Impact/What If Visibility-Process Change
Costing/PricingUnit Sales
epaC
UB
EC
on
nec
tor
MarginManager
Synchronizer
“Domestic Impact/What If Visibility by Prod Line/Prod”
“Divisional Impact/What If Visibility by Cust/Cust Type/
Prod Price Type/Prod Line/Market, etc”
Analytics Maintenance MaintenanceAnalytics
Using Product Information to Optimize Gross Profit www.epacube.com
Price Management by PM/Category & DIV by Category
PM 1 X Cat CAT 1 CAT 2 CAT 3 CAT 4
PM 2 X Cat CAT 5 CAT 6 CAT 7 CAT 8
PM 3 X Cat CAT 9 CAT 10 CAT 11 CAT 12
PM 4 X Cat CAT 13 CAT 14 CAT 15 CAT 16
ALL CATALOG
PRICE ANALYSIS
DIV/CAT CAT 1 CAT 2 CAT 3 CAT 4
DIV/CAT CAT 5 CAT 6 CAT 7 CAT 8
DIV/CAT CAT 9 CAT 10 CAT 11 CAT 12
DIV/CAT CAT 13 CAT 14 CAT 15 CAT 16
ALL DIV
PRICE ANALYSIS
Time
Parallel Processes:i.e. Price Management by (PM X Category) & (Division X Category X Customer)
Using Product Information to Optimize Gross Profit www.epacube.com
New Pig Benefits…
• Build on/Learn from Current Pricing Process
• Reduce time, labor cost in Pricing Process
• Create On-Line System Automate & Streamline Process
• Model the “EFFECT OF CHANGE” - before LIVE System Processing
• Add Flexibility to Process
• Add Visibility to Process (at all levels) for Better Decision Making
• Create Parallel Processes where possible
Using Product Information to Optimize Gross Profit www.epacube.com
Optimizing Gross Margin & Pricing Optimizing Gross Margin & Pricing over continuously cleansed and over continuously cleansed and
up to date product dataup to date product data
Product DataProduct DataCleansingCleansing
Data Data SynchronizationSynchronization
DataDataGovernance RulesGovernance Rules
MasterMasterProductProduct
DatabaseDatabase
Margin ManagerMargin Manager
DataDataMappingMapping
epaCUBE