An inefficient and manual quoting process affects not only time-to-quote but also customer satisfaction and respective win rates.
Our client, a global contract development and manufacturing company (CDMO), faced these exact challenges while seeking to improve their pricing and quotation management process.
With several sites in Europe and the US, the company needed to quickly replace its cumbersome and manual process with a top-quality price quotation tool.
We recognized that the CDMO needed a price quotation tool and process
that outputs a recommended target price for incoming opportunities in a timely manner, with streamlined cross-department communication and eliminated risks of human errors and inconsistencies.
Our first move was to develop a framework for value-based pricing that would result in a target price that systematically captures willingness to pay on a deal-by-deal basis. This process focused on identifying the most relevant value drivers that impact customers’ willingness to pay. Some examples include molecule complexity, development stage, and level of existing relationship with the CDMO.
Once the value drivers were established, we used deal reconstructions and scenario modeling to quantify the mark-ups of individual value driver attributes. We also mapped out user requirements for the new tool, re-designed the quotation process, and programmed the price quotation tool.
As a last step, we developed an implementation roadmap that specified the timeline and key milestones, relevant KPIs, roles, and responsibilities, etc. This was handed over in an in-depth training session to ensure successful institutionalization of the new tool and processes.
With the new pricing and quotation tool, our client was able to navigate through the process faster and with more consistent pricing.
The automated process resulted in significant efficiency gains, improved customer satisfaction, and ensured peace of mind for the CDMO’s management by aligning pricing decisions with predefined and agreed-upon logic.
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