When it comes to the ability to set prices that are market-driven, rather than cost-driven, specialty chemicals manufacturers consistently rank among the lowest in B2B. Because of the unique amount of transparency and raw material cost-driven pricing structure, manufacturers in this sector are usually contractually obligated to take prices up and down in line with publicly available commodities indices. Further complicating things, historically the approach to building up to a price has been done by brute force – through spreadsheets, PDFs and tracking down contracts stored in multiple locations. Barrett Thompson and Mick Naughton discuss a better way, driven by data science, to automatically update component cost factors, recalculate formula prices and quickly deliver updated prices that follow contracted guidelines.
To access the whitepaper mentioned in this episode, click here.