Case Study – National Fixture Manufacturer
Services provided

Sales & Pricing Analytics

While working on another project for our client, the Liberty team spotted an opportunity in the data that was able increase operating income 40% during the first year. Find out how.

overview

Liberty was able to utilize advanced analytics and knowledge from our prior work an ERP transformation with the client to identify opportunities in the sales/pricing process to help a leading national fixture manufacturer improve it's bottom line.

The Business Problem

From our previous work with the client on an ERP transformation program, we recognized there were potential opportunities to improve operating income by improving sales processes. We recommended an assessment of pricing policies, sales processes, and do a bottoms-up analysis of the discount and pricing strategy/tactics employed by their independent sales representatives. Our hypothesis, together with executive team, was that there were likely opportunities to use management reporting tools providing transparency into sales yield across the enterprise that would likely result in higher operating income margins.

The Outcome

Liberty worked with the client to develop a yield management process and toolset that leverages their transaction data to generate powerful management reports to identify areas to increase pricing across products, customers, and regions. Additionally, the tool generates reports indicating sales across the available company products, which enable managers to assess and improve sales in product groups that are underdeveloped and under-marketed. The tool and improved processes enabled our client to more quickly realize price changes in the market – realizing price increases and cash rather than deeper discounts. The approach instilled sales representative discipline through fact-based management, which lead our client to increase profits selling the same products, to the same customers, at the same volume.

40

%

Improvement in Operating Income

Accelerated Growth

Through the implementation of the toolset and sales process improvement Bradley is actively managing pricing and product penetration in every sales territory. The results of this initiative has been an improvement of operating income by 40% the first year of implementation and over two years realizing $8M of additional operating income. Additionally, Bradley was able to increase gross YOY sales to existing customers as a result of analyzing customer Share of Wallet data and sales person product mix and discovered $300K of reoccurring pricing errors in their system.

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