| Mill products companies face a highly volatile pricing environment driven by fluctuations in raw material, energy and freight costs. The cost and price volatility is further compounded by general economic conditions and trim issues. As mill products companies shift from a supply-chain led culture to a commercially-driven culture, price and margin realization need to be core competencies.
Mill products companies need to effectively segment their products and customer base and manage price differentiation according to value delivered for the segment and product attributes. They need to maximize the area between price and cost curves by rapidly translating raw material cost escalation into pricing actions, and vigilantly manage customer and product mix.
Mill products companies also need to improve deal negotiation and exercise price discipline in accordance with capacity utilization and market conditions. With highly manual systems and processes currently in place, very few mill products companies are best-in-class pricing organizations today.
Leading mill products companies have standardized on the Vendavo Enterprise Pricing Suite to help them make pricing a core competency and to leverage the power of pricing to significantly improve margins. These companies include Georgia-Pacific, Weyerhaeuser, and SCA, among others.
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