An executive with a leading national brand food product company approached Provident with an issue of constrained manufacturing related to their ability to service a significant national account. One the client’s customers purchased only as a backup supply to their own unreliable manufacturing process. They would intermittently purchase large quantities, demanding short delivery schedules.
Drawing cross industry solutions, we worked with the client to formulate a pricing model that uniquely fit the customer’s ability to purchase and store product for consistent delivery of the client’s product at existing pricing, while monetizing high margin pricing for unplanned emergency delivery. As a result the client increased net margin by creating predictable delivery schedules and fully monetizing client emergency events.