home.aspx
 
EVENTS

Food Automation & Manufacturing Conference and Expo
FOOD AUTOMATION & MANUFACTURING CONFERENCE AND EXPO
September 13-16, 2020
Food Engineering's Food Automation & Manufacturing Conference and Expo is a 2 ½ day event that brings food and beverage processors and suppliers together to gain valuable information on the latest trends and technologies in manufacturing, automation, sustainability and food safety. FA...

 BIOMEDevice Boston
 BIOMEDEVICE BOSTON
September 16-17, 2020
The Conference brings together renowned R&D experts and technology innovators to share information regarding opportunities, best practices and challenges in the development of the new devices. Attendees will get insight into device innovation trends, next-generation design strategies and upcomin...

.

Price Alignment Reveals Opportunities for Manufacturers During Pandemic

THOMAS R. CUTLER
SHARESHARESHARE
The way these new automation solutions have been adapted and adjusted promotes the ease of setting and managing pricing boundaries in context of all variables. Price alignment was designed to alleviate the pain for any manufacturing organization using simple rules or trial-and-error methods to derive prices; this is especially true if corporate objectives include rapidly and repeatedly adjusting and maintaining prices at the most granular level.

Shockingly, many Fortune 500 companies are still using spreadsheets and manual data collection. Such antiquated processes prevent the required price alignment and robust management of pricing strategies.  Researching the perceived barriers to price alignment automation, most industrial business decision-makers feared an extensive implementation time, complexity, and significant costs.

New solutions overcome those concerns offering an automated pricing alignment technology which can be implemented cost-effectively in just weeks.  Delivering significant improvements in revenue and margin by providing a clear, guided user experience (via insightful dashboards and comprehensive pricing science) means hundreds of manufacturing companies in Q3 and Q4 2020 will ensure pricing execution remains aligned with strategic objectives.

In fairness there a several expensive solutions on the market, well into six figures, which promised the automation, yet became as cumbersome as legacy ERP installations and maintenance challenges.

Automation must start with easy integration to source systems followed by seamless population of transactional systems with optimized prices. With those processes in place price alignment enables complex pricing logic automation.
Price Alignment Reveals Opportunities for Manufacturers During Pandemic
© 2020 QueBIT PriceAlign


Manufacturing pricing experts 

Pricing experts, Dallas Crawford and Dan Barrett were asked to elaborate how manufacturers should analyze pricing needs using data analytics.


Crawford (pictured left) insisted that price aligning with data analytics can be done readily in real-time. The ability to concentrate on high and low volumes that fall outside a normal distribution of trend or seasonality can inform where margin opportunities exist. This is particularly valuable during the pandemic where buying patterns are in greater flux. Higher volume provides opportunities to adjust prices based on demand or to capture market share. Lower volume provides opportunities to analyze pricing, determining if market share is being lost or if the product’s lifecycle is near its end.

 

Barrett (pictured left) noted the best method to analyze and optimize customer pricing is to model the data and ensure that the analytics platform supports it at a very discrete level. Customer data by location or product SKUs allow for optimal delivery of unique pricing. Understanding and forecasting the customers’ pricing elasticity is key to determining the optimal price.

 

Pricing sensitivity for manufacturers during the pandemic

Crawford suggested that PriceAlign’s Machine Learning models can be more adaptive than typical time series models in the pandemic environment. Adding more qualitative and timely input variables (like fuel costs) allow the model to be more contextual and tolerant to the aberrant data collected during this unique event. The pandemic gives manufacturing organizations, which embrace the PriceAlign technology, the opportunity to study and model the effects to be better prepared for future events. Shutdowns will potentially cause incomplete data; future training of Machine Learning models will have to deal with it.

Barrett is convinced while the pandemic is an important driver for price aligning, it remains just one factor impacting manufacturers on the demand and supply side.

Only through automated price alignment are mid-sized manufacturers able to raise pricing strategies to new levels of sophistication, achieving dynamic pricing based on a variety of factors, and understand price elasticity across different customers, products, or regions.
Price Alignment Reveals Opportunities for Manufacturers During Pandemic
By eliminating spreadsheets, price aligning improves the ability to rapidly adjust pricing to the most detailed levels and market conditions.  In weeks, the automated pricing data ensures that manufacturers are able to visualize customer segments driven by variables that shape demand, such as demographics, allowing for more targeted and dynamic pricing adjustments.

This unique automation approachleverages predictive demand plans that utilizeadvanced analytics to drive accuracy and optimal prices. Only with automated real-time pricing based on up-to-the-second market information will companies be able to properly respond to rapid pricing fluctuations during the pandemic.


Pricing Industry Experts:


Dallas Crawford is an Advanced Analytics Executive with over 10 years of experience helping customers leverage predictive analytics to make informed strategic decisions. Prior to QueBIT PriceAlign, he spent 7 years at IBM serving clients in the Distribution Sector and led multiple key Predictive Analytics and Reporting projects. Dallas graduated with an MBA from Florida A&M University in 2008.

 

Dan Barrett is an advanced analytics technical manager at QueBIT PriceAlign. Barrett served as Controller and CFO for a manufacturing organization for more than 12 years. He successfully led evaluations of Advanced Analytics solutions in hundreds of evaluation cycles with some the world’s leading manufacturing and retail organizations. He directed the development and field enablement of Distribution and Manufacturing Performance Management Solutions while at IBM and Cognos.

 

About The Author
Thomas R. Cutler is the President and CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc., celebrating its 21st year. Cutler is the founder of the Manufacturing Media Consortium including more than 8000 journalists, editors, and economists writing about trends in manufacturing, industry, material handling, and process improvement. Cutler authors more than 1000 feature articles annually regarding the manufacturing sector. More than 4400 industry leaders follow Cutler on Twitter daily at @ThomasRCutler. Contact Cutler at trcutler@trcutlerinc.com.

SPOTLIGHT

QueBIT PriceAlign delivers significant improvements in revenue and margin by providing a clear, guided user experience via insightful dashboards and comprehensive pricing science. The ease of setting and managing pricing boundaries in context of all variables sets this solution apart. QueBIT PriceAlign was designed to alleviate the pain for any organization currently using simple rules or trial-and-error methods to derive prices, especially if corporate objectives include adjusting and maintaining prices at the most granular level.

EVENTS

Food Automation & Manufacturing Conference and Expo
FOOD AUTOMATION & MANUFACTURING CONFERENCE AND EXPO
September 13-16, 2020
Food Engineering's Food Automation & Manufacturing Conference and Expo is a 2 ½ day event that brings food and beverage processors and suppliers together to gain valuable information on the latest trends and technologies in manufacturing, automation, sustainability and food safety. FA...

 BIOMEDevice Boston
 BIOMEDEVICE BOSTON
September 16-17, 2020
The Conference brings together renowned R&D experts and technology innovators to share information regarding opportunities, best practices and challenges in the development of the new devices. Attendees will get insight into device innovation trends, next-generation design strategies and upcomin...