ENGG 390 Reports (MEM Students)

Degree Program

M.E.M

Faculty Advisor

Geoffrey G. Parker

Document Type

Report

Publication Date

Fall 2022

Abstract

As an Associate Consultant at Simon-Kucher & Partners (SKP) I worked for a client that is a large chemicals manufacturer specializing in aerosols and liquids to evaluate and optimize their pricing strategy and processes. The client manufactures over 20,000 products, has over $500M in revenues, and hopes to grow >$1.5 billion by 2026. A lack of formalized processes, consistency in structure, and management, along with the number and variety of SKUs, resulted in massive lack of pricing and margin control across the company leaving opportunity for increased efficiencies and profitability. After initial analysis of historical invoice data and development of preliminary sales approval escalation thresholds, it became clear that a solution needed to be forward looking and required extreme process updates. Detailed review and documentation of the existing processes for both new and existing products were developed through interviews with key stakeholders to identify significant pain points. Optimized tracking and systems integration would streamline the sales pipeline utilizing tools and systems currently underutilized, and implementation of cost forecasting would support a shift from reactive to proactive pricing. Process points that should require additional margin and pricing review were identified, which would begin tracking realized margin and order volume and identify necessary future price increases. A hypothesized ideal future state process was developed based on client feedback, and initial prioritization of action items was reflected in an implementation timeline proposed to the client which would have an estimated profit impact of between $16-30 million annually.

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Restricted: Campus/Dartmouth Community Only Access

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