MDM-Podcasts-launch
Need Help? (888) 742-5060

In The News:

Tip: Tune ERP for Better Strategic Pricing

June 12, 2014

Many distributors’ plans for better pricing have failed to keep up with technological changes that can make the process less manual and a little more “automatic,” according to Brent Grover, managing partner at Evergreen Consulting.

“I feel comfortable in saying that in most wholesale distribution companies, they underutilize the ERP system,” Grover says in Optimize Technology for Better Pricing. It requires effort on the part of distributors to tune their ERP systems to optimize their strategic pricing capabilities, he says.

Tuning a business’s ERP is a four-part process: transaction analysis, refining the pricing process, tuning the pricing engine and sales training. Refining the pricing process and making it semi-automated will make “routine pricing more routine,” Grover says.

Changes in business system capabilities have made it easier for distributors to reduce the burden on salespeople in making pricing decisions critical to maintaining customer profitability. Using a process that requires salespeople to determine discounts and premiums manually for each customer leads to inconsistency and creates outliers, he says. Using your ERP system to make the process “semi-automatic” creates a structure that is “consistent and efficient.”

“Without strategic pricing, you could be leaving a lot of money on the table,” Grover says.

© 2019 Gale Media, Inc.

Please do not reprint MDM's content on your website without MDM's express permission as it is copyrighted material. To gain permission, email us, or call 1-888-742-5060. For information on PDF or print reprints, visit www.mdm.com/reprints. MDM welcomes inbound links from your site. Please cite Modern Distribution Management.

2018-top-distributors-listThe 2018 Top Distributors List

This free PDF includes lists of top distribution companies across 14 sectors.

You will also receive MDM Update, our daily distribution e-newsletter & other distribution-focused content.

Download the Free PDF now >>


MDM-UpdateMDM Update: Daily Newsletter 

Sign up to read the best source for news & trends in wholesale distribution, MDM Update. Delivered daily to your inbox. 

Sign-up for MDM Update >>

Post a comment to this article

Partner Center