SUCCESS STORY

Körber Tissue Establishes Market-Based Pricing

Körber Tissue has greatly benefited from market-based pricing. Adjusting prices based on the market has resulted in fair, lucrative and stable pricing that causes an immediate increase in sales volumes for specific parts. This is proof of customer satisfaction and confidence towards Körber Tissue. 

How Körber Tissue increases their overall service level with market-oriented pricing
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CHALLENGE

Fluctuating markets make competitive price forecasts difficult

The biggest challenges in this industry are the average cost increase and the fact that manufacturers require a large amount of power to transform the raw materials into the finished products. When it comes to spare parts, the main challenge lies within the supply chains: prices are highly volatile and not as stable as anticipated. Predicting future developments has become increasingly difficult, which makes managing parts' price lists an extremely complex task. 

 
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SOLUTION

Körber Relies on Market-Based Spare Parts Pricing and Exploits the Full Price Potential

Customers request a fair and stable price with specific and lasting validity. Therefore, machine manufacturers today need to understand the appropriate price to set in their price lists for tomorrow.  

"Before using PRICERADAR, we used to determine the prices according to what we could see, meaning corresponding to our supply chain and the benchmarks we found there,“ says Adriano Rubichi, Customer Service Sales Intelligence and Back Office Coordinator at Körber Tissue. "Our intention and expectation was to provide the most fair prices on the market and avoid the customer finding a better deal than ours on the market,“ he adds.  

From reactive to proactive with MARKT-PILOT: Adriano and his team are considering the market expectation and working on costs instead of just applying mark-ups. In practice, this is about extracting data from the PRICERADAR and matching this information with Körber’s in-house business intelligence. MARKT-PILOT enables the Körber Business Area Tissue to set its prices in line with the market and to bring the parts business to a new level with an overall market-based pricing strategy. First and foremost, this is not solely concerned with increasing the sales volume but also with an increase in  customer loyalty and trust towards the company. 

"I would recommend MARKT-PILOT to every machine manufacturer because MARKT-PILOT supports you in a market-based approach and offers a different perspective, outside of your field of competence regarding parts pricing and lead times."

Adriano Rubichi
CS Sales Intelligence & Back Office Coordinator at Körber Tissue

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RESULT

Market-Based Spare Parts Pricing Increases Customer Satisfaction and Sales 

In addition to price data, MARKT-PILOT also provides intelligent information on parts’ availabilities and competition. These insights can be used to enhance the overall service level. For obsolete components and parts with increasing lead times Körber Business Area Tissue decided to purchase backorders to ensure availability and get a head start to their competitors. As a result, Körber’s service level massively improved. 

For the next step of the collaboration, Körber Tissue will further implement the market-oriented pricing strategy for a range of other parts with the aid of MARKT-PILOT and the AI based software, PRICERADAR. 

Expanding the use of PRICERADAR into the Italian market, thus demonstrating the importance of and need for a differentiated view of parts and their pricing in respective markets and further European states.

"We decided to work with MARKT-PILOT because the software itself and the way it delivers information about prices and lead times is full of potential. MARKT-PILOT paves the way for new opportunities and gives us the ability to not only know what is happening in our market, but also what is going on inside and outside of our industry and our area of expertise."

  

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Körber Inc. is a leading international technology corporation with approximately 12,000 employees all over the world. Tissue, one of five Körber business branches, represents innovative converting and packaging machines for hygiene tissue products. The Körber Business Area Tissue headquarter is located in Lucca, Italya region coined by the business branch and globally referred to as Tissue Valley.  

 

Amanda Smith

FOUNDER, CEO & EXECUTIVE CHAIRMAN

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