B2B pricing in global logistics
Everyone blamed Pricing – but no one could see through the issue to solve it
Situation
- Client is a leading provider of global relocation services with offices in +40 countries. Working in a highly competitive industry with low margins, how do they ensure that every deal is profitable?
- No common pricing or costing methodology existed, each country working to optimize its own P&L
Imago Advisory approach
- An initial diagnosis identified several areas in pricing methodology that could be improved, and suggested a plan of action. Here, Imago Advisory worked seamless with an internal project organization across all offices. The plan covers analysis, design and implementation
- Designed a comprehensive and common cost model based on insight into actual business processes across all offices to account for variances in local business processes and cost structure, and based on this several pricing models are build to cater for different pricing needs
- Designed and reconciled a new business intelligence system based on a new, common master data model, data cleansing and new dashboards to drive both insights and continuous quality
- Designed novel profit sharing logic and governance between offices to ensure alignment behind new pricing methodology as well as ensuring optimal pricing going forward
Outcome
- The company is now able to work with a standardized optimal pricing model, that with few minutes of data input ensures profitable quotes in each and every quotation
- As a corollary, the newly established business intelligence systems has provided deep international insights into operation to allow for several cost optimizations
