Price Optimization System Selection - Parker Avery: … Word - Cabela's Price Optimization System...
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© The Parker Avery Group. All Rights Reserved. Learn more about us at: www.ParkerAvery.com Or contact us at: 770.882.2205 [email protected] The Parker Avery Group is a boutique strategy and management consulting firm that is a trusted advisor to leading retail companies. We specialize in solving merchandising, supply chain, store operations and multi-channel commerce challenges. We combine deep experience and thought leadership with proven consulting methodology to deliver world-class results for our clients. client A $3+ billion multi-national, specialty retailer of outdoor sporting goods. parker avery solution The Parker Avery Group assessed the client’s pricing capabilities, defined the client’s future regular price and markdown business processes, and led the client through the system selection process. As part of this effort, Parker Avery performed the following key activities: • Evaluated the client’s current state pricing practices and benchmarked them against industry leading practices • Defined future state processes, organizational structure and corresponding roles and responsibilities • Documented system requirements • Vetted potential software providers • Issued an RFP and evaluated responses • Organized on-site software demonstrations and drafted a detailed demonstration script • Conducted reference calls with software providers’ customers • Evaluated solutions for business fit • Developed a multi-faceted scoring assessment and reviewed findings with stakeholders • Counseled the client during negotiations with software providers • Provided a detailed plan for implementation results After completing the evaluation process, the client was able to select the vendor with the best potential to meet their comprehensive price optimization requirements. Parker Avery was tapped to assist the client with the design and implementation of the selected software solution. Defining future regular and markdown pricing processes and guiding the selection of price optimization software in a multi-channel environment, with the objectives of improving margin, increasing efficiencies and improving customer satisfaction. challenge The client struggled with managing their regular and markdown pricing activities given their large SKU-base, localized assortments, extreme seasonality and the complexity of their multi- channel business model. They recognized the need for well- defined, coordinated business processes, supported by cutting edge analytical software in order to drive increased margins, improve labor efficiencies and enhance customer perception of their pricing policies. The client also wanted to ensure their pricing solution would accommodate their plans for significant future growth. Scorecard THE PARKER AVERY GROUP © 2012 16 Multi-Channel Price Optimization Promotions Planning and Management Promotions Optimization Markdown Price Optimization Regular Price Optimization Software As A Service Availability Other solutions offered Allocation, Assortment Planning and Optimization, Data Integration, Customer Insight, Integrated Merchandise Planning, Size Optimization, Space Planning and Optimization, Supply Chain Intelligence = Capability is in production and has an installed base with multiple clients = Capability developed, but not yet in production or in production with a single client = Capability not yet fully developed Business Overview Large privately held commercial software company. Acquired XYZ planning solutions in 2003. Continued investments in business intelligence, analytics and science- based software. Financials Revenue $2.725B Key Clients ! TruckZone ! Books Brothers ! Family Tree ! Z Groupe ! Drink Depot ! Mike’s ! Stanley’s ! Plate & Co. Pricing Functionality Recent Activity ! Vendor A Revenue Optimization family moves to high-performance computing platform (January 2012) ! Vendor A Customer Support site ranks among 10 Best Web Support Sites (May 2012) Strengths ! Product development spend ! Business Intelligence offerings ! Diverse client base using Revenue Optimization tools ! SaaS or on-site software ! New technology Weaknesses ! Services bandwidth ! Solution Complexity ! Direct channel functionality Vendor A Price Optimization System Selection:
Transcript of Price Optimization System Selection - Parker Avery: … Word - Cabela's Price Optimization System...
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© The Parker Avery Group. All Rights Reserved.
Learn more about us at: www.ParkerAvery.com
Or contact us at: 770.882.2205 [email protected]
The Parker Avery Group is a boutique strategy and management consulting firm that is a trusted advisor to leading retail companies. We specialize in solving merchandising, supply chain, store operations and multi-channel commerce challenges. We combine deep experience and thought leadership with proven consulting methodology to deliver world-class results for our clients.
client A $3+ billion multi-national, specialty retailer of outdoor sporting goods. !!!! parker avery solution
The Parker Avery Group assessed the client’s pricing capabilities, defined the client’s future regular price and markdown business processes, and led the client through the system selection process.
As part of this effort, Parker Avery performed the following key activities:
• Evaluated the client’s current state pricing practices and benchmarked them against industry leading practices
• Defined future state processes, organizational structure and corresponding roles and responsibilities
• Documented system requirements • Vetted potential software providers • Issued an RFP and evaluated responses • Organized on-site software
demonstrations and drafted a detailed demonstration script
• Conducted reference calls with software providers’ customers
• Evaluated solutions for business fit • Developed a multi-faceted scoring
assessment and reviewed findings with stakeholders
• Counseled the client during negotiations with software providers
• Provided a detailed plan for implementation
results After completing the evaluation process, the client was able to select the vendor with the best potential to meet their comprehensive price optimization requirements. Parker Avery was tapped to assist the client with the design and implementation of the selected software solution.
Defining future regular and markdown pricing processes and guiding the selection of price optimization software in a multi-channel environment, with the objectives of improving margin, increasing efficiencies and improving customer satisfaction.
!
challenge The client struggled with managing their regular and markdown pricing activities given their large SKU-base, localized assortments, extreme seasonality and the complexity of their multi-channel business model. They recognized the need for well-defined, coordinated business processes, supported by cutting edge analytical software in order to drive increased margins, improve labor efficiencies and enhance customer perception of their pricing policies. The client also wanted to ensure their pricing solution would accommodate their plans for significant future growth.
Sample Summary Vendor Scorecard
THE PARKER AVERY GROUP © 2012 16
Multi-Channel Price Optimization
Promotions Planning and Management
Promotions Optimization
Markdown Price Optimization
Regular Price Optimization
Software As A Service Availability
Other solutions offered Allocation, Assortment Planning and Optimization, Data Integration, Customer Insight, Integrated Merchandise Planning, Size Optimization, Space Planning and Optimization, Supply Chain Intelligence
= Capability is in production and has an installed base with multiple clients = Capability developed, but not yet in production or in production with a single client = Capability not yet fully developed
Business Overview Large privately held commercial software company. Acquired XYZ planning solutions in 2003. Continued investments in business intelligence, analytics and science-based software.
Financials
Revenue $2.725B
Key Clients ! TruckZone ! Books Brothers ! Family Tree ! Z Groupe ! Drink Depot ! Mike’s ! Stanley’s ! Plate & Co.
Pricing Functionality Recent Activity ! Vendor A Revenue Optimization family
moves to high-performance computing platform (January 2012)
! Vendor A Customer Support site ranks among 10 Best Web Support Sites (May 2012)
Strengths ! Product development spend
! Business Intelligence offerings
! Diverse client base using Revenue Optimization tools
! SaaS or on-site software
! New technology
Weaknesses ! Services bandwidth
! Solution Complexity
! Direct channel functionality
Vendor A
Price Optimization System Selection:
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