Servigistics Service Parts Pricing Solution Granted U.S. Patent for Advanced Pricing Methodology

Manufacturing News, Source : The Manufacturer US
Zone : IT in manufacturing
Published : 25 Jan 2007 22:47

Servigistics, the leading strategic service management solutions provider, announced that its pricing solution has been granted a U.S. Patent for its advanced "Method for Performing Market-Adapted Price Planning" (MAPS), which incorporates market dynamics, not just cost, when formulating price decisions for service parts.

Currently used by leading companies across automotive and high tech industries, Servigistics Pricing enables companies to achieve significant improvements in gross profit margins. The solution also provides stronger negotiating positions with suppliers, coordinated pricing decisions across all levels of the organization, visibility into market changes, improved control over warranty expenses, and identification of undervalued parts.

"In many industries where a product's lifecycle span decades, the sale of replacement parts represents a monumental revenue and profitability opportunity," said Mark Vigoroso, Chief Research Officer & Senior Vice President of Service Chain Management Research. "In fact, many manufacturers earn more revenue and profit margins on post-sale service and parts than they do on initial product sales. This creates a significant opportunity for every company, regardless of industry, to improve its approach to service parts pricing and significantly impact its financial, operational, and competitive performance."

"Intense global competition and dwindling product-based profit margins are causing leading companies to understand that service parts pricing is a critical lever to overall profitability," said Bill Huyler, President of Pricing Services, Servigistics. "This is driving a fundamental shift from an out-dated cost-plus pricing methodology to the advanced methodology in the Servigistics Pricing solution, which enables service parts to be optimized based on a variety of current market conditions and cost to improve profit margins, solidify customer relationships, and compete more successfully with other parts sources."

The Servigistics Service Parts Pricing Solution is a component of the company's Strategic Service Management Solution and combines proven pricing methodologies, advanced optimization techniques, market adaptive business logic, and a global, multi-language, multi-currency open architecture to provide a comprehensive service parts pricing solution.

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