European trade terms harmonisation

Client: Consumer goods manufacturer

Topic: Price Waterfall Harmonisation

Our client designs, manufactures and distributes high-quality consumer goods throughout Europe – and is one of the market leaders in their domain. They operate several sales offices across the continent to be able to serve markets locally.

Besides the obvious benefits it gives, this decentralised approach has also resulted in a vast variety of commercial agreements with their customers, e.g. through different suggested retail prices and heterogeneous on-invoice and off-invoice discounts. This makes it difficult to explain the structure, especially since customers are becoming larger and more professional, while the market is becoming increasingly transparent.

To circumvent the challenges, we developed a harmonised pricing and discounting approach for the different business units and countries, balancing the urge to be different to succeed in a particular market and the desire to standardise systems and processes internally. To support this all, we designed a system architecture to support decision-making and pricing & discounting management.

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