During a working session, we evaluated the price recommendation tool and we identified that the lack of supplier’s control over their product’s prices as a potential blocker area. Further, when we isolated the problem & deep-dived into it, we realised the existing cumbersome process (via support ticket) has shaped certain supplier behaviour where they are
1. Reluctant to (or experiment with) reducing prices
2. Adding an extra buffer to their prices (old suppliers - post awareness of this process)
Though the size of the problem alone might suggested that we build a fully capable price control tool for supplier, the lack of supplier incentive or penalty for decreasing/ increasing might encourage suppliers to misuse the price control feature by increasing prices on high selling products without losing out on visibility.
Now, when we consider all the potential impact areas & risks associated, we expect total opportunity to be in range of 0.6%- 1% PD from launching this capability whereas the risks to be ~4-5% price increase.
Therefore, we decided to break the project and take up only PRice decrease functionality in the first Phase.
Want to print your doc? This is not the way.
Try clicking the ⋯ next to your doc name or using a keyboard shortcut (
