Automotive Supplier Pricing Management

Tackling the Complexity of Automotive Supplier Pricing

Pricing management in the automotive industry presents unique challenges for automotive suppliers, given the complex nature of pricing structures. Sales teams often face difficulties in maintaining and accurately tracking pricing information due to the multiple components contained in each price agreement.

These complex price structures involve multiple components such as productivity discounts, material commodities, tooling amortisations, logistics, and others. Maintaining a complete Start of Production (SOP) to End of Production (EOP) price development allows Sales teams to understand the evolution of pricing structures, enabling them to provide accurate price and revenue forecasts and negotiate effectively with customers.

Inaccurate pricing can result in financial losses, strained customer relationships and inaccurate Sales planning and forecasting. By having a structured Pricing Management solution to manage all price components and changes, suppliers can avoid pricing discrepancies and provide both customers and their internal organisations with reliable and transparent pricing information.

With such complex pricing structures and frequent updates, it can be challenging for Sales teams to stay up-to-date and accurately calculate prices. By providing efficient Price Management solutions, suppliers can equip their Sales teams with the capabilities to easily and accurately navigate pricing complexities, leading to improved customer satisfaction and increased sales effectiveness.

In the absence of a robust Price Management system, pricing errors and loss of revenue can occur. Sales teams may unintentionally overlook price adjustments, fail to apply the correct discounts, or neglect special pricing agreements such as amortization agreements. These errors can have significant financial and budgeting implications for suppliers. By utilizing digital solutions, suppliers can mitigate such errors and losses.

To simplify price management and support Sales teams, automotive suppliers need to leverage digital solutions tailored for automotive pricing complexities. The Xotigo Sales Management suite can efficiently manage the complete lifetime pricing with all related components, automate price updates due to material commodity or exchange rate changes, notify of changes in amortization amounts, and provide real-time pricing information to Sales teams.

A structured digital Price Management solution not only improves operational efficiency but also strengthens customer relationships and drives sustainable profitability.

Xotigo provides digital software solutions for the automotive supply
and manufacturing industries. Xotigo’s solutions cover the entire
business processes of sales teams, increase productivity, improve data
transparency and deliver intelligent insights to improve margins.


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