2 Replies Latest reply on May 29, 2012 7:03 AM by hankmullen

    Effective linkage of pricing with supply chain

    James Apprentice

      It is high time we all link our pricing with the extended supply chain to make sure that the we are able to cater ot the volatile demand in much better way as demonstrated in the site link. What are the your thoughts and what are the other methods that can be deployed for such an endeavor?

        • Re: Effective linkage of pricing with supply chain
          pboudreau Apprentice

          It would be better to have more accurate forecasting in the first place.  However there will always be volatility.   The scenario goes against economic models of elasticity which say that a product in high demand will achieve a higher price and therefore improves a company's margins.  Some companies encourage 'shortages' as a marketing plan.  The concept of offering delayed delivery at a reduced cost does allow greater consumer choice.   Would it also be worthwhile to have discounts on 'where' the product is purchased, for example, with products purchased closer to a supplier's site having a greater discount because of reduced shipping costs to a central distribution location?

          • Re: Effective linkage of pricing with supply chain
            hankmullen Novice

            Fist we have to determine how the price is determined. If you think you can still use the NMFC class rates

            for your LTL freight pricing, you are in that group that is using a system that is over 80 years

            old. Think of what the carriers and shippers could do wih a system that allowed daily updates to cost

            and lane balance and space occupied. I posted a paper and PDF on this site, please read and let me know

            what you think.


            The same applies to packages (if it fits, it ships USPS) and Truckload, keep those wheels moving and profits soar.


            Hank Mullen Dynarates  770-241-6630