Pricing Model Rollout
Influence Tech led and executed a project based on the implementation of a new pricing model in MS Dynamics, within the asphalt industry. The project led to increased predictability and transparency of reusage of asphalt, through significant changes in the information structure.
Through a business transformation program, MS Dynamics was introduced as the ERP for the client’s Industry in the Nordics. There was also a drive towards increasing transparency in their pricing process to enable common ways of working across all Nordic countries. Therefore, it was decided to also implement a new pricing model.
With advancing production technologies and a general environmental trend, the amount of reused asphalt in the production process had increased to a substantial level, which had impact on the production costs. This was however not completely visible in the current pricing model.
“We did an ERP pricing model implementation to promote predictability & transparency”
Purpose of the assignment
Given the situation, a parallel initiative was started to develop a new asphalt pricing model and to highlight the use of reused asphalt in the Swedish asphalt production. Because of this, MS Dynamics had to be re-loaded with new master data to support the new model and product structure, without disturbing the production already operating with the solution in place.
The earnings of the client’s asphalt division became more predictable as the pricing model got more transparent. By increasing transparency of reused asphalt percentage in the asphalt production, the client got total control of the margin on each product, making them better equipped to win projects and take market shares from their competitors.
The project was led and executed by Influence Tech. On top of putting the new pricing model and master data in place, IT changes were coordinated, and a new calculative tool were developed to support the business in the pricing calculation.