Elevating
the Pricing Model
The critical need was to insuring that all products were priced correctly
to protect the profit per item while managing limited inventories.
Pricing
had been set manually over many years following a trend in demand and
remaining inventory levels. A standard pricing model was needed to manage
rapid company growth and to validate all current and future pricing.
The pricing model had to control a complex mix of products, inventory
levels and sales options.
Critical Factors:
If pricing escalated too rapidly, the number of sales would decrease
while the inventory levels remained high.
If pricing escalated too slowly, the majority of sales would be at too
low of a price while the inventory levels dropped.
The pricing model could not be adjusted downward once an escalation
occurred and had to maintain the current pace of sales.
Solution:
Ortiz Consulting analyzed the sales data from previous years, the current
sales activity and the projected inventory levels. The analysis showed
an escalation pattern that closely followed the Golden Ration 1.618.
Ortiz Consulting created a price structure that used the Golden Ratio
as the foundation of the escalation process. The new price structure
also allowed for high demand escalation exceptions.
The result was company wide automatic pricing and forecasting based
on the pace of sales and reducing inventory. This brought all products
in line with a logical sales path that successfully met all critical
factors and successfully managed the 10 times company growth over 5
years. The company directors acknowledged that this pricing solution
provided the validity required to close some of the largest sales in
the company’s history.
Empowering the Change Process
The critical need was to manage the post sales changes in a completed sales
order. This flexibility is required in many sales organizations and can
be converted from creating a liability and cost to generating revenue.
Almost every process encounters exceptions. These exceptions, although
they occur in a small percentage of orders, require a large percentage
of resources to accommodate. Any process that is too rigid to allow for
exceptions will eventually break down or require additional daily manual
processing. The exceptions will often have a high rate of error and will
create inaccuracies in the data generated by the primary process.
Critical Factors:
Customer relationship was a high priority including allowing for desired
changes and upgrades while insuring accurate delivery.
Production process was sensitive to changes during the production run.
Real-time accurate change handling was critical to reduce the cost of changes
and errors delivered to the customer.
Accurately identify production costs and employee time related to each
exception.
Solution:
Ortiz Consulting analyzed the sales and production processes to create
a solution. The resulting change and exception process included components
embedded within multiple software modules to link in real-time the activities
related to the change process. The controls allowed the sales team to initiate
changes without communicating directly with production. The production
team could see a change while it was in process, the resulting changed
order and the original order for reference. This solution enhanced the
sales process, reduced costs and time required to facilitate a change and
supported the growth of the organization.
Data
Data is the core of any process or software solution. Data is a valuable
resource if accurately gathered, stored and analyzed. The structure of
a database determines the scale and capabilities of the software UI and
external interfaces that use it.
Data Analysis:
Ortiz Consulting provides expert data analysis for any situation. From
simple backup planning and validation to complex extraction and research,
Ortiz Consulting will protect and empower your data.
Example:
One of the largest law firms in New Mexico, representing a large detention
center management company, hired Ortiz Consulting to perform a detailed
data analysis. The results were used for legal assessment and reference
for mediation. The analysis included extracting the data from a FoxPro
database, converting to Microsoft SQL Server and creating a large set of
analysis queries within a standard user interface. This allowed teams for
both law firms (plaintiff and defendant) to access the data and reporting.
Database Design and Integration:
Ortiz Consulting has over 20 years of experience designing databases of
all sizes, from simple small business desktop tracking to complex enterprise
level cloud-based data storage. Ortiz Consulting can perform assessment
and analysis of existing and new database solutions for current support,
future scale planning and systems integration.
Database Support:
Ortiz Consulting provides Microsoft SQL Server and Access database support.
Our database experts can help with complex issues and common best practices:
Design and Diagram
Backup
Maintenance Plans
Tuning and Profiling
Indexes
Comparison
Exports
Migration
Upgrades
Integrations
Reporting
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