After six years of unsuccessful efforts, Philips approached CommerceCX for assistance with their implementation corrections after hearing about our successful Lead to Cash implementation at the World’s Largest Pure-Play Coffee Company.
CommerceCX worked with Philips to come up with a new solution that fit their business process, using our thought leadership skills and advisory capabilities. We introduced CommerceCX’s products to improve maintainability and scalability, and provided a roadmap of implementation timelines.
Part of this roadmap included implementing solutions in multiple phases.
CommerceCX brought down the number of price list items from 15 million to under 1 million, reducing Philips’s data load and drastically improving processing time. This data load reduction reduced pricing and discount calculation time from 2.5 minutes to less than half a second.
These simple but powerful changes resulted in:
- Improved the accuracy of price and contract selections, providing the best contract price in seconds.
- Shortened sales cycles and improved revenue recognition time.
- Better revenue visibility, which exhibited zero margin leakage across the supply chain.
- Increased customer confidence in Philips, as reduced errors gave more time for customer fulfillment.
- Provided a great buying experience.
In the second phase, we replaced Philips’s existing price engine with our customized Contract Pricing Operations Manager, an advanced pricing engine we developed in-house at CCX Labs. This pricing engine enabled a Single Version of Truth, housing all pricing data in one centralized database.
Having a Single Version of Truth:
- Reduced price and discount configuration and computation time by 92%.
- Allowed the system to consistently and quickly generate prices without crashing.
- Brought down quarterly pricing update time from 40 hours to less than 8 hours.
- Upgraded asset-based ordering/service.
By implementing CommerceCX’s Contracting Pricing Operations Manager, Philips’s system now
- Achieves above 98% accuracy in contract pricing.
- Generates error-free quotes in minutes or less.
- Allows users to introduce promotions outside of the entire marketing cycle.
- Enables their organization to
- Administer accurate pricing and chargebacks.
- Guarantee compliance to price-tier commitments.
- Mitigate rebate overpayments.
- Ensure that contract commitments are met and all margins are approved.
- Monitors daily contract net prices and on-demand prices to identify and prevent possible regulatory compliance issues, mitigating risks.
- Coordinates detailed contract information to create accurate, beneficial contracts that ensure compliance.
- Accurately calculates all chargebacks, rebates, distributor commissions, fees, and accruals to reduce the churn rate and protect provider revenue streams.