The company knew that any approach to pricing would need to start with a baseline strategy and strong project. They first mapped business processes and historical pricing strategies in the globally distributed production sites. They moved away from cost-based pricing, and instead, built a strategy through value-based and market-driven pricing. In their case, spares would now be based on value vs cost. Pricing principles were defined, and more than 200,000 articles were grouped into categories and families. Through Vendavo’s solutions and partnership, this organization set up consistent and well documented pricing principles, which serve as a solid platform for growth and continued business development. A team dedicated to pricing was formed consisting of many roles including a global price manager, divisional pricing managers, and analysts to carry out daily tasks. The centralized pricing is completely compliant with the new methodology and supports their long-term growth.

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