Customer/Vendor Pricing and Discount Grids
Challenge:
Gift card distribution is a highly competitive industry where continual price negotiations with Vendors and Customers results in complex Pricing Plans with seasonal discounts and multiple Customer-specific exceptions. Additionally, some gift cards are issued in variable denominations which are not predefined and therefore can’t be priced individually. These Pricing Plans require up to eight decision layers, which can’t be defined within standard Microsoft Dynamics GP functionality or available third party products. The gift card industry is characterized by very high volumes and gross margins well below 10%. Management of card pricing and processing millions of serial numbers was extremely difficult for the Sales and Order Management teams and frequently prone to errors.
Solution:
Create a matrix based multilevel pricing system based on price range discounts. Standard pricing, discount pricing and calendar price promotions can be defined for each Vendor. Pricing Plans from multiple vendors are selectively grouped into Pricing Classes which can then be assigned to Customer Groups and/or individual Customers. Multiple price exceptions by Vendor or Vendor Promotion can additionally be configured for individual customers. Variable denomination cards are managed by a combination of serial numbers and defining pricing as discounts of the nominal card value. Re-engineer the Order Entry, PO Processing, Allocation and Fulfillment functions in Dynamics GP to deal with high volume serialized items.