One of the consequences of the Covid-19 pandemic has been very rapid changes in the supply chain, this concerns the delivery of raw materials, parts, and components, all of which are now delivered randomly and at changing prices. So even if this can be handled in logistics, the consequences on price change, working capital, price strategy, marketing, etc. are severe and so need to be addressed – now.
Based on the above description most companies have first addressed servicing customers as best possible and then managed costs through targeted cost savings. However, the prices of the company products have not been adjusted accordingly. The reasons are obvious in that it is very difficult to predict market response to price change and also how well the company organization is able to handle the market impact from these changes.
This workshop is focused on how to adjust the company operations to meet the market changes and what price strategies that are possible.
SPECIFIC ISSUES AND KNOWLEGDE NEEDED TO MAKE DECISIONS
- Do we have good enough data to evaluate customer price elasticity (sensitivity)?
- What are the risks connected with a customer demand (value-based) pricing strategy?
- Pro’s and con’s of value-based vs cost-based pricing
- Is our salesforce/marketing prepared for meeting customers with new increased/changing prices?
- What are the effects on working capital and the working capital strategy?
- How do we handle supplier vs customer delivery contracts – particularly on contract time span?