Pricing Strategy Optimization for Healthcare Distribution

Navigating the fast pace of modern business, companies face the relentless pressure of efficiency. In a world where speed is of the essence, even minor lapses can spiral into revenue losses or customer dissatisfaction. Large corporations are complex: their many components often hide inefficiencies that, if unchecked, can erode performance. The imperative for streamlined, automated processes has never been more critical. The quest for efficiency is about keeping pace and sealing the gaps that compromise operational excellence. This can enable organizations to harness their full potential.

At the heart of strategic agility lies pricing — the most potent tool to modulate demand. Pricing has an unparalleled ability to influence financial outcomes swiftly. It’s an essential mechanism for organizations aiming to adapt to the dynamic preferences of their consumers.

Our client is a premier Fortune 16 entity. They are one of the US’s oldest and largest medical supplies, equipment, and healthcare technology wholesalers. The company encountered significant hurdles in managing its extensive product portfolio. The diverse contract terms for pricing and rebates increased the complexity. It made it hard to create new sales agreements.

Streamlining healthcare distribution processes

The company’s decentralized and manual processes introduced the potential for human error. This resulted in inefficiencies and revenue losses. These outdated methods kept the company from staying competitive and creating value in the industry.

Innovating healthcare distribution

Recognizing the need for transformation, our client sought to overhaul their operational framework. The aim was to use a single system for pricing and management, streamlining processes to expedite deal creation. Moreover, the transition towards a streamlined and automated approval mechanism was crucial. This new system needed to harness intelligent pricing insights. It also needed to cater to a broad spectrum of audience segments and channels.

Drawing on our understanding of the healthcare industry across verticals, we crafted a tailored solution that empowered 50-100 business users with real-time dynamic pricing for contracts. Our approach involved developing a specialized CPQ price optimization and management solution. Starting from a proof of concept, we innovated a new product. We transitioned from prototyping to an MVP and total production within 12 months. This strategy leveraged technological advancements to enhance our client’s operational efficiency and system robustness.

What we provided:

Foundational strategies for pricing efficiency

This framework elevates pricing strategies and integrates seamlessly with existing systems. It ensures around-the-clock accessibility and enables the creation of customized operational models for improved efficiency and scalability.

The immediate impact:

The solution was rolled out to the client’s business units with a 100% adoption rate. The capability to dynamically price deals in real-time led to a 90% reduction in the time required for deal creation and approval. This significantly streamlined processes.

The long-term benefits:

Over the long term, the solution has enhanced the company’s financial health. Adopting a more efficient pricing strategy has bolstered profit margins and revenue growth. It also accelerated the pace at which products reach the market.