Tuesday, January 13, 2015

Vendavo – Price and Margin Management (PMM)

In case of software solution for Price and Margin Management SAP is relaying on company called Vendavo through their alliance since 2005. They offer this solution as reseller of Vendavo. It is officially called SAP Price and Margin Management by Vendavo (SAP PMM by Vendavo).

What basically Vendavo PMM is about? It is solution for creation of customer-specific pricing strategies, tools for optimizing price negotiations, and institutionalize best practices in value-based selling. There are available so called pricing “playbooks” a predefined set of structured analytical steps to help find margin leakage. Also role based dashboards available coming with prebuilt metrics of pricing. Finally there are visualization tools to understand revenue and profit levers.

Interesting part about Vendavo is that they also uses in-memory technology which runs on a traditional database (oracle and DB2). Basically they are using it to support its tool called Vendavo Profit Analyzer. The profit analyzer provides an in-depth analysis of transaction data to highlight opportunities for revenue growth. In 2014 both Vendavo and SAP announced broader relationship where HANA comes into play. The HANA will replace current proprietary in-memory technology used by Vendavo.

More information:
service.sap.com -> SAP xApps -> SAP Price and Margin Management by Vendavo
1229778 - Trouble Shooting Vendavo Price and Margin Management

SMP component: XX-PART-PMM Vendavo Price + Margin Mgmt.

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