SUMMARY:
Without a centralised pricing function, or pricing guidelines and tools to assist when pricing new proposals, our client was losing out on new business opportunities and wasting valuable time and trust with existing ones. They were urgently needing to create a pricing function within the Finance department, develop appropriate pricing guidelines that met global standards and best practices, and acquire state of the art systems to assist with their pricing process.
KEY CHALLENGES:
- Leakages on fees due to write-offs, write-downs and discounts.
- The inability to make strategic, accurate pricing decisions. Without clear visibility on the pricing and profitability of proposals, they could not make informed decisions which would enable them to improve profitability.
- Manual, laborious pricing processes that relied heavily on the expertise of an individual. As a result, there was a critical dependency risk.
- Confronted with changes in legislation, the client was facing the potential risk of being exposed to penalties, financial forfeiture and material loss due to potential non-compliance.
THE ANALYZE SOLUTION:
Applying our expertise in business and process analysis, we first formalised the business and process requirements, defined necessary actions to be taken, and guided the acquisition of the
client’s new pricing system, enabling them to also ensure ongoing compliance.
From advisory support to on-the-ground implementation and training, the successful implementation of a new pricing system was achieved with minimal disruption.
By the culmination of the project, our client was be able to:
- Implement our recommendations, thereby increasing operational efficiency.
- Provide more accurate reports and information to Senior Management and Auditors.
- Track proposal progress against set budgets.
- Track, monitor, and analyse client and proposal profitability to drive strategic decision-making.
- Create a database to store data and templates to enable the business to price business accurately and efficiently.
- Build a competitor database to provide insights on market pricing.
- Develop an effective process for negotiating with key clients.
- Increase awareness of business proposal performance.
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