SECTOR-LEADING E-COMMERCE PLAYER

PRICING AUTOMATION IN E-COMMERCE

Automatic pricing of millions of products to be competitive at all times

"The new Oliver Wyman trading tools are the foundation of how we operate our commercial unit"

THE CHALLENGE

Our client was a global online travel company struggling to keep on top of their commercial processes. The number of markets was growing and the frequency of competitor price changes had increased substantially. Many pricing decisions were taken late and with limited recognition of market context.

"Oliver Wyman's task was to build an upgraded platform for commercial decision making and to fuel the continued high growth of the business"

What we did

WE REDESIGNED HOW PRICING PROCESSES WORK

WE REDESIGNED HOW PRICING PROCESSES WORK

We spent focused time with the client's trading teams to understand their competitive dynamics and how best-practice pricing strategies could be adapted to their specific needs.

WE ASSEMBLED DATA FROM A WIDE VARIETY OF SOURCES

WE ASSEMBLED DATA FROM A WIDE VARIETY OF SOURCES

Leveraging Oliver Wyman Labs' private cloud infrastructure, we were able to capture and store data that was not previously possible, including customer web searches, inventory, costs, prices, and competitor data.

WE PROTOTYPED NEW TOOLS AND WAYS OF WORKING

WE PROTOTYPED NEW TOOLS AND WAYS OF WORKING

We prototyped trading tools for the client, gathering feedback as we went. We describe this approach as "by the users for the users," which dramatically improves uptake and ease of use.

WE SUSTAINED THE UPGRADED CAPABILITY THROUGH ROBUST WEBTOOLS

WE SUSTAINED THE UPGRADED CAPABILITY THROUGH ROBUST WEBTOOLS

Working alongside the client's internal web development team, the tools were coded as robust web tools and then connected into their core trading and pricing systems. The web tools form the foundation of how this team works on a daily basis.

IMPACT

TRANSFORMING COMMERCIAL DECISION MAKING

TRANSFORMING COMMERCIAL DECISION MAKING

The new web tools dramatically increased the time spent pricing rather than processing, enabling better decisions and faster reactions.

ENABLING RAPID, SCALABLE AND PROFITABLE GROWTH

ENABLING RAPID, SCALABLE AND PROFITABLE GROWTH

The trading tools underpinned 40%+ EBITDA growth in the business as it scaled to new geographies and customer groups.

The result was an integrated pricing process and decision-making toolkit that provided a platform for rapid growth and increased commercial capabilities.

IF YOU WOULD LIKE TO DISCUSS THIS PROJECT FURTHER PLEASE CONTACT
Chris McMillan, Partner   chris.mcmillan@oliverwyman.com
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