The client’s primary challenge was to deliver orders and distribution at a low price and effectively to its partners. The client experienced considerable variations in the partners’ order behaviour. This resulted in major differences in costs and thus the overall profitability of the company. The company needed to create transparency in customer profitability as a foundation for a new partner price model.
A much-improved cost generation was driven by the new price model’s incentives for “good procurement behaviour”. The aim of the new price model was to unite incentives to the widest extent possible for the shops, chains and the customer. The price model created transparency for the partners.
The project resulted in a price model that reduced the costs for all parties across the value chain and an improvement in margins by 4-5 % at the client.