DeLaval needed to move from their cost-plus pricing system to a value-based pricing strategy and methodology. This was made possible through the partnership and continuous work with the DeLaval and Vendavo teams.
The project started with training a large team that would facilitate the roll out of the eventual strategy throughout the organization. The extensive work covered all their markets and products starting in their capital goods and aftermarket business units.
The team, made up of multiple cross-functional members, created a structure that arranged everything into three categories – spare parts, accessories, and products. Additionally, central pricing analysis and market management analysis were performed in parallel. This helped develop and supply subsidiaries with value-based, market-driven local prices.
Vendavo Pricepoint became the framework to manage and maintain global and local prices. Another factor in DeLaval’s success was the level of detail and strategy used to roll out the new system. It was important for teams and individuals to have proper training on the solution, relevant tasks, and the future strategy of pricing.