Pricing complexity of the process industry
Process manufacturing industries face unique challenges
when it comes to pricing. Unlike standardized products,
these sectors deal with highly customized items sold
in large volumes, often requiring spot or contract
pricing. The complexity arises from volatile raw
material costs, intricate costing models, and the
need for frequent alignment across siloed
organizations. Add to this the diversity of
pricing strategies, contracted terms, and the
logistical challenges of serving a large
customer base—such as transportation, customs,
and compliance—and it’s clear why traditional spreadsheet
methods fall short.
These challenges lead to time-consuming
and error-prone quotations, lost sales,
margin erosion, and inefficient workflows
that can consume up to 50% of sales
resources. The result is a significant
drain on profitability and operational
efficiency.