Chemical Plant

Energy Giant’s Global Pricing Transformed into a Well-Oiled Machine

Discover how strategic pricing for individual markets drives consistent margins and shareholder returns

Highlighted Business Outcomes

Value-based pricing

Segmented pricing for every market served

Single source of truth

All pricing variables for 5,000 SKUs live in a single, easy to access system

More consistent margins

Strategic price changes drive bottom line growth

Energy Giant’s Global Pricing Transformed into a Well-Oiled Machine

The priorities are clear and consistent at this multinational energy company: generate cash, return it to shareholders and reinvest in the business. The company’s brands include some of the best-known passenger car engine oil and heavy-duty engine oil labels and premium lubricants throughout the world. The global process advisor for pricing and his team are responsible for setting and optimizing pricing for more than 5,000 SKUs in the company’s lubricants and additives division but it was extremely challenging to organize the many pricing variables in one place.

When I first started in pricing, we managed everything in spreadsheets and SAP and it was difficult to keep everything updated. With Vendavo, we can get the pricing data we need on price points, bids, and sales histories and it’s all in one place, so we can analyze it and maximize our margins.

Pricing Manager
Energy Giant

Pricing that Hits on All Cylinders

What was once a highly decentralized and undisciplined product pricing process several years ago has now been organized using Vendavo solutions into a high performing function that ensures agility, precision, and profitability. Because one price does not work for all customers, explains the pricing advisor.

The company also uses segmentation to build and maintain price lists that represent every customer base, in every market around the world. And the company’s sales teams are better prepared for negotiations no matter if they’re selling to customers who need hydraulic fluids, turbine oils or antifreezes.

The value is different for customers in different industries because equipment uptime, operating costs, and outputs vary so much. Vendavo helps us track all these variables to we can set prices at levels that are appropriate and profitable.

Pricing Manager
Energy Giant

Pricing guidance delivers consistent margins, superior shareholder returns

The pricing advisor explains that he and the 700 other users throughout the company agree pricing is easier and more transparent with Vendavo. When price changes are made, the ripple effects can be seen more clearly. “Now when we make a price change, we can preview the impact on revenues and margins before its officially published,” he says. “We can run different scenarios and see if our changes achieve the desired results in topline and margin growth.”

“We’ve got to capitalize on these positive market forces and one way we do that is by making sure our pricing is as sharp as it can be,” says the pricing advisor.

Vendavo pricing guidance helps makes our brands stronger, sell smarter, and earn more so we can deliver on our goals of free cash flow growth and superior total shareholder returns. We’re better prepared, we’re focused, and it’s working.

Pricing Manager
Energy Giant

Customers have been very pleased with the live quote process. It eliminates the opaque, black box feeling and long wait times of the previous quote method and they can instantly see what other options do to their pricing. When trust levels go up, sales go up.


About Company


Multinational energy company

Fast Facts

Industry: Specialty Chemicals

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