Detailed simulation for pricing system re-design

data

Objective

A medical supplier wanted to redesign its pricing system and required a simulation tool in order to

  • Simulate the impact of the new pricing system on 2 million annual sales data points
  • Enable multiple changes and adjustments to the simulated pricing system
  • Assess the effect of 10 different rebates/discounts with different parameter sets
  • Provide detailed analyses of the likely outcome of the proposed pricing system.
2

Technical solution

  • Excel front-end with central Access database, allowing multiple users to edit and analyse scenarios
  • Professional UI, using Ribbons
  • Interactive waterfall chart and result breakdown
  • Fast high-level simulation in real time, for rapid "top down" analysis cycles
  • Detailed simulation in 1-2 minutes, for comprehensive "bottom up" analyses
  • Automatic import of latest sales data from enterprise sales database
impact

Result

  • Reduction of pricing system redesign effort from 6 months to 4 weeks, enabled by interactive simulation and facilitated in workshops with key stakeholders
  • Simulation tool enabled iterative approach, allowing for detailed fine-tuning in very short cycles
  • Flexible result analyses allowed for application in top management meetings (for overall impact assessment) down to product-/customer-/sales rep level or any combination thereof
  • Tool is now used for regular annual pricing system adjustment
Industry
Healthcare & Pharma
Tool type
Pricing support
Project duration
2 months
d2i effort
12 mandays
Data volume
2M sales data records
4,000 customers
5,000 product
Tools involved
Excel
Access