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Sales are increasing due to competitors being unable to manage supply chain challenges, but prices are changing weekly and margins are sliding. With a small admin team, how can a wholesale business manage inflationary pressures and maintain margins while growing sales without increasing the admin team or changing systems?
The Problem
The existing ERP system has manual and import / export capability for price management but UI's are time consuming and supplier price change notifications are in different formats, often emails or texts
The business owner is overriding prices daily to try and manage margins
There are no admin resources available to support this business requirement
The Solution
Stage the product pricing data and customer sales history by SKU and establish automatic syncing from the source system
Develop a 3 screen workflow app to display customer pricing by SKU together with all relevant data including margin history
Ensure simplicity of operation to enable sales staff to manage price changes
Base the workflow on new cost or cost change and prompt all required price maintenance on that (cost through)
Include automation to remove pricing records where customers or products are inactive
Include SFTP data push of new price data and reports for review and import to the ERP (Internal Controls maintained)
Develop a series of exception reports to highlight pricing issues from the masterfiles
Low margin by customer / SKU
Product cost changes not supported by sell price changes
Price overrides by customer / SKU
The Costs (all in AUD) (indicative as at 2023 and excluding GST)
The data warehouse cost (if required) is dependent upon the size of the data being stored but ranges from $30 pcm
The data visualisation cost is dependant on the number of visualisations required but ranges from $200 pcm (small) to $500 pcm (large)
The other cost is the development time for defining the end solution
This is generally a once off up front fee and can range from $750 to $5000 depending on the number and complexity of the visualisations required
As the business becomes confident in the data, expect to request more visualisations and redefine existing ones
Generally, minor infrequent changes would be included in the monthly costs quoted above
Major changes or enhancements would be quoted but expect them to be in line with the one off development rates described above
What DOES NOT affect costs
Initial on site meet and greet is obligation free and at no cost
Number of users, you can have as many as you need at no additional cost
Initial training and onboarding is included (limited to staff that will champion the solution)
One on site visit per year to review the solution and results are translating to benefits (i.e. the data is being used proactively)
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