In a chat last week with PYMNTS.com, Blue Ridge CMO Ed Rusch explained that historically, a silo that separates pricing strategy from supply chain management and sales planning can be financially detrimental to a B2B organization.
Supply chain management, forecasting and planning go hand-in-hand with sales and pricing strategy. Therefore, the technology behind these functions must be tightly connected if the organization expects to move from a reactive position to a unified, proactive, agile company.
A prime example? Price and promotions. Often, the Sales team will establish promotional pricing on a certain item. But that pricing strategy fails to consider the ability of the company to actually keep those items in inventory. In another instance, you may have an overpriced item sitting in inventory, keeping working capital stuck on the shelves. This causes supply chain breakdowns, slow market response, let-down customers and loss of profitability.
Integrated planning and pricing solutions can help you not only mitigate risk, but actually shape demand in a predictable and controllable way — making you a far more agile, proactive supplier.
Read the full article in PYMNTS.com: “How Pricing Strategy Can Support B2B Sellers’ Broader Supply Chain Objectives”