The main aim of pricing and revenue management in a supply chain is to create a balance between supply and demand, while simultaneously optimizing profits. Traditionally, businesses would tweak the availability of their assets. However, in this day in age, revenue management has adopted a different approach. One that focuses more on pricing as the main tool for leveling out supply and demand.
As a more universal approach, this type of pricing and revenue management in a supply chain has proven to boost profits more efficiently. It’s a winning strategy for companies across a number of industries, including manufacturing, food distribution, and wholesale. Let’s dive into how and why you would adopt this approach for your own company.
Balancing supply and demand
Individually, both supply and demand can be adjusted using several different strategies. For supply, this could include changes to your inventory, while demand is usually generated by marketing efforts.
Pricing management is the process that ties supply and demand together by focusing on strategies designed to strike a balance between the two. Working with limited supply chain assets, both in terms of capacity and inventory, pricing and revenue management in a supply chain use pricing as the key tool for optimizing profits.
Increasing the profit margin
There are several revenue management strategies organizations can choose from, depending on your industry and business model. You can choose to focus on the timing of your pricing, targeting different customer segments or adjusting rates based on product or service availability.
Each of these approaches to pricing and revenue management in a supply chain can significantly increase profits. Which one you choose is largely based on the nature of your offering. Perhaps your value proposition is different for different audiences. Or maybe the demand for your products or services spikes during certain seasons. You could even adjust pricing based on individual versus wholesale purchases.
Seasonal pricing and revenue management in a supply chain
Manufacturers and food distribution companies selling season-specific products rely on revenue management tactics to balance out their supply and demand between peak times and the rest of the year. One winning pricing strategy for optimizing profits in this area is fluctuating between higher rates when demand spikes, and reduced prices in off-peak periods. This way you’re encouraging customers to shift their demand, which in turn allows you to maintain the efficiency of your supply chain.
By making this shift as well you are not stuck with a ton of inventory at certain times of the year and you can maintain consistent cash flow for these items.
Revenue management of bulk and spot customers
Most products can be offered individually at a higher price (spot sales) or in bulk at a lower rate. Effective pricing and revenue management in a supply chain strikes the right balance between the two, ensuring wholesale companies are bringing in optimal profit from their offering. You can achieve that through in-depth customer segmentation and strategic inventory management.
It does take an all-hands-on-deck approach. All teams need to be on the same page to be able to execute an effective pricing and revenue management strategy.
Not sure where to start?
What does it mean?
Auditor is FIELD specific auditing – what does that mean? It means you can look at any window in GP and pick and choose a particular piece of information on that window you want to capture changes to.
Does that mean I can only audit one thing? Nope – there are no limits on the number of fields you can audit.
Does Auditor slow GP to a crawl? Nope – we aren’t capturing an entire table’s worth of changes, just the fields you want. You might go a little audit crazy in the beginning and try to audit everything, but you’ll get the hang of it and figure out what’s really important to you to catch.
What if I don’t want something changed? Easy – put a lock on the field and require a user or an approver to sign off before the change is made!
What if I want to know WHY a user changed something? Just mark a checkbox when you set up the audit and require users to complete a note as to why they changed a field value.
Can I get a notification as soon as a field changes? Yep! Emailed, via the Auditor message center or both.
Can I audit an integration? Yes! Use a SQL table audit to capture changes written directly to a GP table and changes that are made through SQL scripts.
How to Install Auditor in 6 Easy Steps:
- Download the Auditor code file from our website and save it
- Run the install wizard on your GP server
- Log into GP as administrator
- Click Yes to install new code
- Plugin your registration keys and you are ready to create your first audit!
- Repeat steps 1-4 on any workstations that have local GP code installed on them
How long does it take to create an audit? 2-5 minutes depending on the number of fields and options you want to select for each field. We even have some sample audits you can download right on our product page to get you started.
Is there a trial version? Yes, you can try SmartFill for free for 30 days in your environment. Here is a link to the trial form.
Here are some commonly asked questions and facts for SmartFill.
What is SmartFill?
It’s a Google-like search tool for finding a key piece of information or a specific record in Dynamics GP.
What is a key piece of information?
An Account, a Vendor, A document, A customer, a checkbook, an employee – almost anything
Where does SmartFill work?
Anywhere there is a magnifying/lookup glass across GP you could use SmartFill. In most cases, it’s already working there as soon as you install it!
Can I modify how SmartFill searches?
Absolutely! It comes with easy to modify pre-set searches, but you can quickly customize them to however you want to search for information!
Does SmartFill work for all of my GP users?
Yes! SmartFill is licensed based on the number of concurrent or full system users you have in GP, so everyone can use it no matter how much or how often they access GP.
Can SmartFill search in 3rd Party product windows?
Most of the time, yes! As long as the product is Dexterity-based, you can create a new object, or apply an existing SmartFill search to the windows and fields that search for key records in 3rd party products. If you run into a snag, just reach out to firstname.lastname@example.org and they’ll help point you in the right direction!
How many pre-set searches does SmartFill come with?
Out of the box, SmartFill searches over 4,000 fields in GP
Is it hard to add SmartFill to a lookup field?
Nope! A few clicks and your set to search it! Here are the easy to follow steps from our Knowledge Base
How to Install SmartFill in 6 Easy Steps:
- Download the SmartFill code file from our website and save it
- Run the install wizard on your GP server
- Log into GP as administrator
- Click Yes to install new code
- Plugin your registration keys and you are ready to start searching!
- Repeat steps 1-4 on any workstations that have local GP code installed on them
How long does it take to modify a SmartFill Search?
2-30 Minutes depending on the number of fields and options you want to customize.
We even have some additional SmartFill objects you can download right on our product page to get you started or to further customize your searches in 3rd party products!
Are there any directions to modify a SmartFill search object?
Is there a trial version?
Yes, you can try SmartFill for free for 30 days in your environment. Here is a link to the trial form.
Once a magazine, now a movement
The GP Optimizer once started as a digital magazine comprised of articles provided by Microsoft Dynamics GP Add-On Partners. Each article focuses on making your investment in Microsoft Dynamics GP more worthwhile by addressing issues that you may be experiencing and providing ways to remedy them.
Then in 2020, 8 years later, we decided to bring it to life with our first ever GP Optimizer Live event on July 28 & 30. These ISVs came together and brought content around 3 popular categories; Supply Chain, Paperless and Payroll, and Cloud Apps and Automation.
The infamous Bob McAdam shared insights on Community Summit, Local User Groups, and other Community-centric information.
We also had Abra and Mariano joining us to talk about how GP is a power player. Boy, a lot has changed since then.
It was such a huge success! We just finished our Winter 2021 edition this past February. This time we used a new platform, had an amazing keynote and focused on content around categories such as; Automation, Tips & Tricks, and Strategies to help improve processes in GP.
So, what’s next?
Well, we wanted to keep the momentum going in the GP space. Unfortunately, it has been in a state of influx with all the changes happening.
The GP ISVs hear you and want to help keep GP a relevant ERP. We want to keep the community going strong. So, what’s next on the list?
Many of us still live and breathe GP. Community is so important whether in person or virtual. With COVID and not being in the office as much or at all, those chats around the watercooler have been non-existent. So, get ready for the TED Talks of GP called Water Cooler Wisdom happening at 12:00 EST every other Wednesday starting April 21.
We have a great line-up of speakers having a conversation around industry trends, hot topics, and educational information.
This is a great way to get up close and personal with the amazing ISVs who have been part of the GP Optimizer since the beginning.
Here’s the upcoming line-up for Spring and Summer:
April 21 – The Two Sides of Inventory Management – NETSTOCK & Panatrack
May 5 – Ask the Experts about Budgeting – Dynamic Budgets, MSX Group, deFacto Global
May 19 -Extend your ERP with integrated eProcurement – Fraxion
June 2 – Why would I customize my Dynamics GP system? What have other customers done?- Blue Moon
June 16 – A Perfect Couple: AP Automation and Payment Outsourcing – Mekorma
June 30 – A/R Automation and Payment Processing– Nodus
July 14 – 2021 Sales Tax Changes: Midyear Update – Avalara
July 28 – What does your variable compensation plan say? – EthoTech
August 11 – Preparing your Digital Factory – Horizon’s International
August 25 – Achieving and Maintaining a Daily Reconciled Cash Position – Nolan Business Solutions
September 8 – GP Then & Now – Rockton Software & Integrity Data
We will share wisdom, insights, best practices, and tips-n-tricks. So, pull up a chair and chat with us.
The best part, they will all be 15 minutes or less. So, it really is a nice way to start the morning or a great break in the day depending on what time zone you are in.
The sweeping popularity of digital channels has completely transformed the world of sales. Manufacturers, distributors, and wholesalers can no longer afford to set one rate and let it run in the background. Modern pricing management involves the complex process of juggling multiple pricing strategies and time-consuming processes.
With so many things on their plates, revenue managers face several challenges in making important decisions. Below, we talk about three main struggles everyone in this fast-paced role needs to deal with daily, along with ways a powerful pricing revenue management software can help overcome them.
Understanding the ‘big picture’
The biggest challenge of revenue management is thinking beyond the sales – the most successful pricing strategies outline ways to maximize profits across all business areas. Managing price adjustments can be tricky, but it’s also crucial for the success of any business.
It’s an indisputable truth that prices fluctuate, no matter your industry, so it makes sense that your rates should change. However, many pricing managers struggle to decide when they should make such changes and how often such tweaks are necessary. With the help of powerful pricing revenue management software, you can view performance figures, filter them by customer segments and adjust your rates in real-time.
However, there’s also the added pressure of setting up and managing promotions. Whether you’re dealing with simple discounts and incentives, or more complex alternatives such as rebates, royalties, and commissions, you’ll need a powerful tool to keep your affairs in order.
The right pricing software can allow you to do all that and more. Advanced pricing management tools offer you a user-friendly preview of historical data and forecasts, making the process simpler, quicker, and more efficient for your employees.
Choosing the right strategy
In addition to making your day-to-day life more manageable, a pricing revenue management solution enables you to look to the future. Backed up with an in-depth analysis of your past sales and revenue generated, you can quickly evaluate business performance and adjust your pricing strategy accordingly.
Depending on your business goals, you might want to segment pricing based on customer attributes, specific product or service features, or even create your groups using any documented data category from your audience research.
Similarly, you can use the built-in functionalities of your pricing revenue management software to set up a variety of rebates for both vendors and customers, enabling them to access discounts and collect payments in a manner that’s convenient for them.
Manual vs Automation
Efficient revenue management is about keeping pricing dynamic. Many companies struggle with the day-to-day management of their rates and discounts, primarily because they have data scattered across various documents.
Aside from the potential error that can occur during manual data input and the inefficiency of this method, lack of automation can hinder revenue managers’ work to execute a dynamic pricing strategy successfully.
Instead of going through the tedium of manually implementing all pricing updates, copying price lists, and combing through data for the information you need, you can automate the entire process with the help of pricing revenue management software and leave all that in the past!
Besides, when you invest in a pricing management tool, you take advantage of its advanced functionalities to measure customer loyalty levels, quickly set up exceptions to your main price list, and efficiently convert sales data to a unit of measure.
Discover the power of pricing revenue management software.
Duplication of pricing, price adjustments, date-driven pricing, and promotions can be a daunting task.
Is it a manual process for you? Do you have to keep track of a million spreadsheets? How about a pricing strategy, what does yours look like?
When you think about your pricing strategies and offering discounts or promotions, it can be time-consuming and painful? Acumatica does have some pricing functionality like discounts and special promotions, but it may not meet all your pricing needs. Maybe you need to rethink your strategy, start here with this checklist.
How can you end the duplication process with pricing? Here are 4 ways:
1. Automate different pricing strategies
Whether those strategies involve running promotional discounts, offer VIP client discounts, rebates for vendors, and more. There really is no limit to the different price adjustments you can use or how many you can offer.
2. Don’t forget the accounting side of things
If you are using a variety of promotions or campaigns (as described above) and you want to put dollars to each of those accounts, you can post adjustments to multiple GL accounts for a single line item.
3. SQL Based Engine
Rockton Pricing Management (RPM) is the pricing engine sitting outside of your ERP system. It is the little engine that could or can do any type of price calculation. Once the price is calculated based on certain criteria it will then push that price back into Acumatica.
We push all of those:
4. How flexible is Rockton Pricing Management?
You can set up a few different promotions that apply specifically to a date range, for a particular customer.
Change a percentage at any time. Give your VIP customer a 3% discount when they are ordering regularly and then when they’re not ordering as much you can easily remove them from VIP status. This can help increase your bottom line knowing you have the flexibility to change which customers get which discounts.
This is all done behind the scenes which means no more duplication of efforts. When you’re setting up these different price calculations, RPM will do the rest and tell the system to just remove that customer from the VIP status filter.
Now, let’s take it a step further. If you have these types of pricing scenarios, then you’re obviously selling goods or services. Wouldn’t it be nice to connect all of your channels from EDI and storefronts to inventory, shipping, and fulfillment?
Here are 3 ways to say goodbye to data duplication
1. One platform is all you need
TrueCommerce can help you streamline processes including eCommerce, marketplaces, and EDI with one single, unified solution. It is a true multi-tenant, cloud-based technology, so you can run it anywhere.
2. All Your Orders in 1 Place
You don’t realize how many places pricing can touch – EDI, Amazon, storefront, an email pdf. It doesn’t matter where the orders are coming from they all end up in 1 central place.
Where is your pricing coming from?
- EDI orders with the negotiated price
- eCommerce with the promotional pricing for your web store or your website
With all of your orders in one central place, there is no more duplication and you never have to re-enter orders or re-type them in.
3. Product Management to the Rescue
Selling on these different platforms and marketplaces is a great way to make money, build your business, and sell your products but each one is different.
Rockton Pricing Management handles all the different pricing scenarios and attributes, TrueCommerce can also enhance those products to have all the different attributes required by doing digital commerce.
The information Amazon wants is different than what Shopify might need to know, this includes product descriptions, packaging, size of your product, and shipping info. With product management in place, you don’t need to keep track of all of that.
With everything integrated and working together with your storefront (Amazon, Shopify, WooCommerce, Magento) you can keep things running smoothly and seamlessly with Acumatica.
End the duplication of pricing, inputting orders, and tracking your entire supply chain process. It is nice to know there are tools out there to not only manage your pricing but your shopping platforms as well.
Check out this webinar to see how Rockton Software and TrueCommerce can help:
- Automate complex and obscure pricing scenarios and calculations
- Enable date-driven pricing with all historical pricing tracked
- Add multiple price adjustments on 1 item
- Gain access to more than 92,000 pre-connected retailers, marketplaces, distributors, vendors, and logistic providers.
Are you spending hours getting information from your time clock or timekeeping system assigned to projects you’ve set up in GP?
Did you know there is an:
- Import tool can make your job more accurate, timely, and efficient
- Easier way to import those payroll and journal entries needed for a specific project
The Project Cost Import tool is a must-have with your job cost solution. It’s easy to import those payroll and journal entries needed for a specific project. So, don’t waste time updating time.
What can you import with this tool?
A variety of transaction types such as:
- Sales transactions
- External Payroll
- Time & Expense
- Payables transactions
- And more
Accounting can import data quickly and easily from outside systems or spreadsheets.
Employee Managers can rest assured because this Project Cost Import Tool requires no additional approval.
Let’s use General Ledger and Timekeeping as an example. There is a one-time set-up for each type of import. You will be able to map all the fields and we provide the excel-based spreadsheet format for this.
You can quickly and easily get your timesheets or your time information, Journal Entry created, and simply bring it in as a General Ledger Journal Entry,and update the project with those cost amounts.
Check out this webinar to see it in action
Since Project Cost Import Tool is an add-on product you do need the Project Cost solution. Project Cost is a tightly integrated project module for Microsoft Dynamics GP, with GP requisition integration, and cash receipts processing.
Maybe you are in the early stages and researching if you need a way to manage, track, and report on projects in Dynamics GP.
Two options that many users look at are Project Cost and Project Accounting.
Is there a difference?
Both can manage and track your projects. Both work with GP. Both have reporting capabilities. But there are some key differences that you should be aware of when deciding, and we have broken them down for you in this blog.
If you would like to learn more about Project Cost Import Tool or Project Cost feel free to:
Meet John, he’s the Pricing Manager. He wants to do something extra special for his customers, like multiple discounts.
What’s his struggle?
He wishes he could offer:
- a standard 30-day promo
- key customer discount
- a bonus discount for those who buy more than 1 item
- anything else he can dream up🤔
Right now he can’t offer any extra discounts for his customers. It’s pretty much a one-and-done scenario.
All he can do is apply:
- one discount
- one item at a time
With RPM for Acumatica he now can:
- give the VIP treatment
- create as many discounts for one item as he wants
- incentivize those loyal customers
You now have the flexibility to offer those discounts or promos for your special customers to give them a little something extra when they purchase an item or service from you.
Ready to give your customers VIP treatment?
SmartFill, the #1 Rockton product, just got even better. Yes, we added 6 new features and we’re so excited to share them with you.
It’s easy to see what new features have been added to SmartFill by accessing the What’s New in SmartFill document right within Microsoft Dynamics GP.
2 Ways to Access The What’s New Document
- From the blue SmartFill shortcut, click What’s New in SmartFill.
- In Microsoft Dynamics GP, go to Help | Rockton Software Support and click the What’s New button.
New Feature #1 – Open from Additional Menu
You can quickly open the Make a Selection window from a window where you have SmartFill lookups assigned without having to type anything in the field. For example, if you have assigned a SmartFill Object to the Customer ID in the Customer Maintenance window, put your cursor in the field and click Additional | Open SmartFill lookup. The Make a Selection window opens with all records tied to that field.
New Feature #2 – Make a Selection Hotkey
You may now open the Make a Selection window using a hotkey. Assign the hotkey from the SmartFill Options window. To access the window, click the SmartFill shortcut, and then click Objects. In the SmartFill Objects window, click Actions | Options.
In the ‘Open SmartFill Lookup hotkey’ field, assign the hotkey you wish to use. By default, S is set as the hotkey. This key, in conjunction with the Ctrl key, opens the Make a Selection window from any field where a SmartFill lookup has been defined.
New Feature #3 – Search by Column
Using SmartFill to find a record is already easy, but now it’s even easier. Previously, when you searched in a field, the Make a Selection window opened, and you could enter a Subset Search to help further define your results if too many were returned. You can still do that, but now you may also select a specific column to search to help narrow down those results.
New Feature #4 – Edit Object from Make a Selection
You may now easily open the SmartFill Object Maintenance Details window from the Make a Selection window. This makes editing the object so much easier. When you invoke SmartFill and the Make a Selection window opens, click the new Edit Object button. Of course, this is only true if you have security access to the SmartFill Objects window. If you don’t have access to the window, the Edit button does not appear in the window.
New Feature #5 – Export Make a Selection
SmartFill is flexible and allows you to pull helpful information into the Make a Selection window.
For example, you might see Sales Order Processing transactions for a specific Customer in a specific date range. Using the Export button in the Make a Selection window, you may export the values returned and send it to an Excel or CSV file.
New Feature #6 – Resize Make a Selection Window
When you open the Make a Selection window, you may re-size the window to fit your needs. The next time you open that window, it will remember the size you last used. It is user-specific, so it won’t affect the way other users see their window.
Across many industries, businesses face the same problem: the market is becoming saturated with options every year, making the competition fiercer. It’s easy to feel like you’re losing your grip on the situation. Have no fear, there’s still a lot you have influence over, starting with your price optimization strategy.
Take a look at the 4 best practices we’ve collected below. Make a note of how many you’ve already implemented. The ones you don’t have in your toolbox are a great place to start your price optimization quest.
#1 Customer Segmentation
By now, most organizations have clocked on to the fact that one blanket pricing for all their audiences simply doesn’t work. To harness the full power of your pricing strategy, you want to really drill into your consumer demographics and create robust customer segments. In fact, many experts recommend adopting a Good-Better-Best (G-B-B) pricing strategy when you’re determining your rates.
Once you have decided how you want to segment your customers, Rockton Pricing Management gives you the power to amend your prices based on customer tiers. For instance, you can generate more revenue by attracting new, high-spend customers with a premium version of your offering. Or you can release a basic package that makes your product or service more accessible to those who cannot afford your key proposition. The latter also serves as a safeguard to your pricing power by doing away with the need to offer discounts as a means to entice customers.
#2 Continuous Improvement
There are two main factors that play into this. On one hand, we recommend investing in research and development, no matter your industry. After all, the best way to stay ahead of the competition and justify your pricing is through continuous innovation. Alongside this, try to avoid rigid pricing. Instead, monitor how your target market is responding to your rates and make adjustments accordingly.
#3 Empowered Sales Team
In today’s fast-paced digital environment, even if you have a dedicated revenue manager or even a whole team, it could be challenging for a handful of people to stay on top of pricing adjustments and fluctuations in demand. That’s why many companies are arming their sales teams with powerful software developed specifically to provide guidance with pricing management.
#4 Innovative Technology
A pricing management solution can do much more than simply assist your team with performing their daily tasks. Our flexible pricing tool is API enabled, which means our pricing solution works with your ERP. We provide SQL-based and web service APIs for RPM so you can connect to any ERP system.
With powerful pricing management software, you can automate any pricing scenario, regardless of its complexity. You will also save time, money and reduce errors by linking your price manager tool with your ERP system. The bottom line is, investing in innovative pricing management technology will give you the peace of mind that you’re showing the right prices to the right customer segments at exactly the right moment.
Ready to take your pricing strategies to the next level?
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