- Pricing was being managed using Excel workbooks. The reference data was downloaded from the core analytical systems into workbooks with embedded macros and formulas. To manage the complexity, the workbooks significantly simplified the business rules.
- Each price-setting exercise also started from scratch: There was no central repository of previous price setting exercises other than a file share. Once price settings were ratified they were manually copied from the Workbook into the global system.
Our challenge was to improve the way of working and provide a platform to enable efficient, accurate price modelling and a controlled price setting. The solution also had to incorporate business rules and support several common types of analysis.
For the first time the Parts and Accessories Division has a tool which fully integrates with the organisation’s global systems. Business rules are formally encoded in the application logic and the solution is scalable so that a large number of parts can be modelled efficiently.
The solution offers the following capabilities
- What-if Pricing Modelling: Planning scenarios that compare price options and evaluate the up / down stream business impact.
- Built-in profit margin calculation: Profit margin calculation supported by automated price calculation.
- Self-service and responsibility: Raise business adoption by providing them with an easy to use tool and a guided business process work flow.
- BPC Embedded: Direct write back of price model data into HANA. Leveraging organisation master data, maintaining data integrity and consistency across enterprise.
- Run on HANA: Pushing sluggish processes that runs traditionally on application server directly to the in-memory database. Allowing complex calculation to run faster and improve the reporting / planning performance.
- Real-time Integration – Integrates vehicle sales data in real-time through HANA and SLT.
- Automation of alerts such as when sales for a part have slowed or where a part price is not competitive with the market
- Gross Profit modelling based on sales forecasts and price elasticity
- Price optimisation
The big picture benefit will be realised by leveraging the data foundation to analysis the relationships and interdependencies between different operating divisions.
It will be possible to analyse the overall cost to a consumer across Vehicle, Parts and Servicing divisions and assure each division is aligned with a shared marketing strategy. It will be possible to evaluate a consumer’s lifetime value, and potentially track the lifecycle of the consumer experience and tailor sales and marketing activity to the individual.
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350 Collins Street,
Melbourne, VIC, 3000
+61 3 8605 4880