Manufacturers that rely on forward-looking predictive models to set prices are able to identify and reduce wasteful pricing processes while reducing over-discounting.
It’s well-established that manufacturers who follow lean principles create significant profitability improvements over time, all while meeting and exceeding customer expectations. From production line workers to the board of directors to sales and marketing, everyone in an organization can benefit from adhering to lean principles. However, those improvements aren’t always evident when the P&L is tallied.
The reason? Poor pricing methods, which result in over-discounting, effectively transfer the incremental profits from lean activities away from the company and into the pockets of their customers.