A global chemical commodity company specializing in silicon compounds approached our experts.
They were looking to introduce dynamic pricing to better capture market opportunity.
A complicated value chain for silicon compounds and a reliance on ‘gut-based’ pricing by many in the organization were holding the company back from capturing more value and maximizing operational efficiency.
Our team built three engines that were intertwined: Forecasting, Rules, and Dynamic.
For each engine, we delivered tools to support their running, maintaining, and updating, enabling the client to grow margins and optimize operations.
These included:
- A dashboard to visualize forecasted and suggested prices
- Excel-based raw data template for inputs of the three engines
- How to guide documents & videos
Stakeholder acceptance was key to this process. To support this, we conducted thorough knowledge transfer and training for the client team via workshops and training sessions.
Historically, our client’s price points have been lower than the market index for the last four years.
Introducing the new pricing engines, and accompanying materials results in a revenue uplift of 7–8% for our client, meaning they beat the market index by five basis points.
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