Toolsgroup Partners with Navetti to Offer Customers a Single Platform for Optimal Pricing and Supply Chain Decision-making
BOSTON, May 11, 2017 – ToolsGroup announced today that it has signed a partnership agreement to integrate its SO99+ supply chain planning platform with Navetti’s PricePoint™ price optimization system. Under the agreement, customers using the joint solution gain the ability to make smart, accurate pricing decisions that leverage demand forecasting data feeds from SO99+ and its advanced modeling and demand shaping capabilities.
“Optimization on Steroids”
Knowing precisely where certain pricing thresholds and ‘sweet spots’ lie represents a huge opportunity for companies to drive incremental margin. Veteran supply chain analyst Steve Banker of ARC Advisory Group explained in a recent Forbes article how systems that draw on a single set of data for supply chain planning and pricing allow companies to analyze price elasticity or identify the extent to which demand in response to a change in price. He commented “Price optimization based on price elasticity models is optimization on steroids.”
ToolsGroup and Navetti were natural partners for a joint technology solution due to the momentum each player had been gaining in industries like spare parts, which are significantly impacted by global market and pricing volatility. The two companies are collaborating on their first joint customer project, which will be announced later in the year.
ToolsGroup’s CEO Joseph Shamir commented, “We are continually looking for ways to help our customers squeeze as much profit as humanly possible from their supply chain planning data. Integrating with a leading price optimization system like Navetti’s is a great opportunity to expand our value proposition.”
“Estimates in the spare parts industry show that a mere one percent increase in price can lead to an 11 percent increase in operating profit. But pricing decisions can’t just be pulled like a rabbit out of a hat. Our joint solution is perfect for companies seeking to make smart, informed pricing decisions using their supply chain data to achieve higher top-line growth and margins, without negatively impacting customer demand,” commented Andreas Westling, CEO of Navetti.
Navetti offers a unique combination of advanced price optimization software and consulting expertise. Navetti PricePoint™ is the acclaimed software suite, an essential tool for day-to-day price optimization across all aspects of pricing strategy. This is supported by the expertise of the consultants at Navetti Consult™ that help customers achieve increased profits faster through insightful value-based pricing strategies and rapid system deployment. Originally developed to solve the complex pricing challenges in large international B2B markets, Navetti’s approach of Operational Pricing is today equally at home in B2C e-commerce applications, as demonstrated by a large and growing number of blue-chip customers.