STRATEGIC CHALLENGES

1Proprietary and confidential. All rights reserved. Copyright © 2020 Vistex, Inc.

STRATEGIC CHALLENGES

José Carlos de Felipe


Vistex Overview

Closing and Next Steps

Strategic challenges from some of our customers

Agenda

Proprietary and confidential. All rights reserved. Copyright © 2020 Vistex, Inc.

ABOUT VISTEX

▪ Established in 1999

▪ Over 1.300 customers

▪ Global presence – 22 offices

▪ 1.700+ employees worldwide

▪ SAP Solution Extensions Partner

VISTEX IS A GLOBAL PROVIDER OF ENTERPRISE SOLUTIONS & SERVICES

SAP Solution ExtensionsPartner of the YearCustomer Experience (CX)

SAP Solution Extensions


22+Industries

30+Countries

1.300+Customers

1.700+Employees

21Years in Business

RETAILWHOLESALECONSUMER GOODS

BROAD INDUSTRY SPECIFIC KNOWLEDGE


Deal Management – End2End

Intelligent revenue management is the key to End2End Go-to-Market success.

GO-TO-MARKET (PRICING + REBATES + INCENTRIVES + ROYALTIES)

Rights & Royalties

Sales Performance

Channel Benefits

Price Management

LIS

T

PR

ICE

INC

OM

E

Price Setting

Business Partner Behavior

Employee Motivation

Unique Offerings


Eliminate Need for Interfaces

• Native access to SAP Data

• Native integration to SAP Modules

Security & Controls

• Leverage power of SAP security

• Audit Tracking and compliance

Lowest Total Cost of Ownership

• Leverage existing SAP ERP hardware environments & skills

• Leverage scalability and performance of SAP ERP

SAP & SAP Vistex


… and in S/4 HANA

•Embedded in SAP Core• Similar licensing & names

• Same installation & maintenance

•Available for S/4HANA• Same features & capabilities

• Adapted to SAP Simplifications

• Optimized for HANA


PRICE MANAGEMENT


SALES REP.

ON TRADE CHANNEL

CUSTOMERDISTRIBUTOR

Purchasing Rebates

VENDORS

GPO

Incentives & Commissions

CONSUMERS

KEY CUSTOMER

RETAIL POS

Promotions and Rebates

Price and Margin

COMPANY

PRICING PROCESS & COVERAGE

OFF TRADE CHANNEL


What-if Analysis for changes to the list prices

▪ Annual large scale list price changes

▪ Smaller, budgeted list price adjustments for a Category

Markdown Planning & Clearance

▪ Inventory Correction/End-of-life product markdowns

▪ Inventory Clearance by Store

Helps in List Price Optimization

▪ Estimate relationship between price and demand

▪ Helps identifying Price Shifts before Optimization

Model Selection

Machine Learning approach to identify the best model for the Article/Store

combination

CALIBRATION

Parameters Estimate

Estimated the parameters of the selected demand

models.

ESTIMATION

What-If analysis

Calculate the expected impact of a price change

on the current demand levels.

CALCULATION

VISTEX RETAIL ESTIMATION (VRE) VRE Processes

VRE Estimates relationship between Demand and Price actions using predefined set of Models supporting:


QUESTION #1

2 T/M 6 NOVEMBER 2020


PRICE OPTIMIZATION


DataVistex is embedded in

SAP and SAP is the system of record

The pricing analyst is underserved

Are you trusting a black box?

Are you hooked on analytics as a service?

Vistex does not duplicate data

Is your Data Lake turning into a Data Swamp yet?

Vistex has access to list prices and actual prices

Do your pricing decisions even have traction?

AnalyticsVistex supports the pricing analyst with tactical and

strategic insights

Big Data Eco-SystemVistex leverages SAP’s

Innovation initiatives bringing the analytics to the data

DIFFERENTIATORS FOR VISTEX DATA SCIENCE


Insight to Actions

▪ Contextual Analytics (What changed?)

▪ Root Cause Analysis (What happened?)

▪ Alerts (Profitability)

▪ Whitespace (Sell More)

▪ Agreement Renewal

Pre-Defined Content

▪ Pricing Analytics

▪ Contract/Agreement Analytics

▪ Rebate Analytics

▪ Sales Trend Analysis

▪ Profitability Waterfall

Predict and Optimize

▪ Vistex Retail Estimation

▪ Price Optimization

▪ Price Guidance & Opportunity

▪ Rebate Forecasting

▪ Range/Ladder Pricing

VALUE PROPOSITION FOR OUR CUSTOMERS


KEY CHALLENGES ADDRESSED TOGETHER WITH OUR CUSTOMERS


Hero Articles ReportBusiness Challenge: To show all hero articles (best performing) in a Category of the product hierarchy by Sales revenue and Margin plotted at Category level showing the articles in form of a bubble chart and a grid

Territory Cost ReportBusiness Challenge: Sales, Costs & Simulation data at different places, need to have one view of the same with margins

ITALIAN RETAILER

Response:

Vistex Analytics was able to combine data in an AMDP from Vistex Simulation results and Costs info from SAP to Sales-Costs-Margin by Territory (Sales org/Region).

Response:

ViZi dashboard showing the best selling articles by category and key metrics of sales revenue, volume and margin depicted in a quadrant


General Overview of PerformanceBusiness Challenge: Business Challenge: A performance dashboard was required by business to analyze sales and margins on weekly basis by store, sales org and category.

Point of Sale IndicesBusiness Challenge: To analyse margins pre and post simulation using weighted indices by customer hierarchy, store and category

ITALIAN RETAILER

Response:

ViZi dashboard built to show pre and post indices and margins by store and store role, calculate variance in both indices and margins for analysis.

Response:

ViZi dashboard with graphs and grid showing Sales Value, Sales Qty, Margin and Index by Calendar Week; both KG and Pcs UoM


Sales and Margins No PromoBusiness Challenge: Report by Store, Supplier, Prod. Hier, should show total cost, sales value, margins, quantity, promotion by margins date range in selection from date - to date; showing aggregated data and ability to drilldown by week

Margin Trend AnalysisBusiness Challenge: Required a report showing articles performing below a threshold in terms of Margins at store and article level

ITALIAN RETAILER

Response:

ViZi dashboard showing the actual and simulated margin analysis and performing articles below the threshold of rules in graph/chart and grid

Response:

ViZi dashboard required combining SAP condition data with BW to produce such report. The challenge was to read condition records using a function based on a condition value in ECC


Price Level Shifts and Elasticity Business Challenge: Analyze price points and price level shifts over the period of 3 years at article, category and cluster level to identify number of price changes

Vistex Retail Estimation ReportBusiness Challenge: Estimate price demand at article > category > cluster level and forecast the new volume based on past 52 weeks

RETAILER IN UK – VISTEX PRICE DEMAND ESTIMATION

Response:

Part of Vistex Price Demand Estimation solution using machine learning algorithms on sales history of 3 years to calculate and estimate the price demand and consume the same in Vistex simulation and forecasting

Response:

Part of Vistex Price Demand Estimation using elasticity values from Price Demand Estimation to produce analysis on how many price points a category had in 3 years to see the shifts in prices and volumes showing the arc elasticity.


Agreements ReportBusiness Challenge: Agreement analysis with request pipeline, profitability and utilization

Vendor RebatesBusiness Challenge: Business Challenge: Vendor Rebate analysis showing trends, margins and profitability

NORDICS ELECTRONICS RETAILER

Response:

ViZi standard content dashboard showing Vendor rebates comparing current and last yar by category, product group, extl material group etc.

Response:

ViZi standard content dashboard showing all Agreement analytics


QUESTION #2



PRICE GUIDANCESALES SUPPORT


Segment Level Price Guidance

▪ Floor, Target, and Expert prices for each specific micro-segment

▪ Updates on derived attributes (features), such as customer size, transaction size, and propensity to buy in a certain product group

▪ Alerts for unusual changes in the market

Real-Time Price Guidance

▪ Customer specific Floor, Target, and Expert prices as a response to a price request

▪ Can incorporate spot market index, costs, competitor rates, freight rates …

▪ Peer group of successful responses to similar requests

PRICE GUIDANCE, REFERENCE PRICES & PRICE ENVELOPE

Determines the best reference prices for a price request, based on successful responses to similar requests by similar customers under similar conditions.


Reference based pricing

▪ Only successful deals

Churn based pricing

▪ Renewals, with automatic win/loss assessment on product level

Win/Loss based pricing

▪ For one time and/or first time deals, requires wins and losses

▪ For digital channels, loss data will be consistent

PRICE GUIDANCE: BIGGER PICTURE

Different model options depend on the type of deal data you retain:

Vistex supports all three models – because your deal data differs by line of business, and your deal data will change


PRICE GUIDANCE


PRICE GUIDANCE


QUESTION #3



SALES REVENUE

BACK & FRONT

MARGIN

COMPLEXITY COST

PROFITABILITY

When you have solid information and a detailed view of your Go-To-Market performance, you have all the elements needed to make the right decisions that leads to successful actions

REFERENCE FRAMEWORK

BUSINESS PROPOSAL

Program Charter & Profitability

Calculation

True visibility with forecasting, planning and

profitability modelling

One single point of truth

Share reliable information across

the company

Financial Visibility & Accuracy

Be more efficient, identify deviations and secure margins

Real Time Visibility

Allow business to make faster

decisions for better time to market

Simplification of Architecture

Lower TCO and avoid data spread across multiple systems


Copyright: Vistex®, Go-to-Market Suite®, ViZI® and other Vistex, Inc. graphics, logos, and service names are trademarks,registered trademarks or trade dress of Vistex, Inc. in the United States and/or other countries. No part of this publicationmay be reproduced or transmitted in any form or for any purpose without the expressed written permission of Vistex, Inc.The information contained herein may be changed without prior notice. © Copyright 2017 Vistex, Inc. All rights reserved.

SOFTWARE SERVICES ON PREMISE IN CLOUD

Vistex GmbHAltrottstrasse 3169190 Waldorf, Germany

José Carlos de FelipeSales Director m: +34 616 975 278e: [email protected]

Documents

STRATEGIC CHALLENGES