Leading Electrical Distributor Improves Sales and Margin with Vendavo
Discover how a wholesale distributor of electrical, sanitary, construction, and maintenance products doubled down on their pricing strategy to improve their operational excellence.
Pricing is Key to Operational Excellence
A wholesale distributor of electrical, sanitary, construction, and maintenance products, with a deep commitment to social themes like the global energy crisis, housing shortages, and cleaner vehicles needed to focus on commercial excellence to operate a successful business. With more than 100,000 customers and four million products, their pricing strategy is key to their operational excellence. The distributor is focused on guarding their sales and margin requirements. If they are unable to achieve their forecasted goals, the distributor runs the risk of not fulfilling their operational and social impact values.
It is vital that we deliver our sales and margin figures. In a volatile environment pricing is even more challenging than it usually is. Vendavo helps make pricing faster, more accurate, and easier to produce the results we need.
Manager Pricing and Commercial Support
Electrical Distributor
Digitalizing Processes and Core Competencies
The distributor has journeyed through a rigorous digital transformation over the last few years. The distributor restructured its processes to prioritize customer satisfaction and implemented stronger digital systems for commercial operations. However, they also faced obstacles due to the current economic climate, as price fluctuations of up to 20% within a few months had a significant impact on the team and customers. To ensure transparency and clear communication, they prioritized providing customers with accurate pricing information. The distributor also faced a large volume of price requests and transactions, with around 400,000 price requests and 100,000 transactions per day coming from various channels, including their stores and online portal. As a result, they focused on developing efficient ways to manage and service these requests.
Vendavo has really kickstarted our pricing capability. Historically, it was very difficult for our sales representatives to give our customers the right price. It was very complex. Our sales people’s jobs have completely changed for the better with the help of Vendavo.
Manager Pricing and Commercial Support
Electrical Distributor
Better Pricing, Stronger Selling, Unparalleled Results
The distributor partnered with Vendavo to handle the complexity of their business, and Vendavo provided stable, reliable software embedded into SAP. With Vendavo, sales representatives have all pricing information in one view, powerful deal guidance, and clear targets. Customers are more satisfied, buying a broader scope of products, and the company has seen a significant uplift in margin. The distributor plans to make advances in their quoting and bonus system to continue making impactful advances while guarding their margin.
The distributor relies on Vendavo to manage prices, discounts, and renew customer terms while providing a pricing gateway for their ecommerce channel. Vendavo has made pricing and selling work six times more efficient and is available 24/7. The distributor’s commitment to customer satisfaction and margin protection has led to significant improvements in their business.
When our company acquires a new customer, that customer will have exactly the right price conditions and price discounts, fit to their business, within minutes. That’s the power of Vendavo.
Business ICT Analyst
Electrical Distributor
Overview
This use case highlights a wholesale distributor of electrical, sanitary, construction, and maintenance products, with a deep commitment to social themes like the global energy crisis, housing shortages, and cleaner vehicles. With more than 100,000 customers and four million products, their pricing strategy is key to their operational excellence.
Fast Facts
Industry: Electrical Distribution
Region: North America