1. Avanade Trade Organization Structure
An easier way of doing business with complex, global enterprises
Avanade Trade Organization Structure enables companies to comply with trade agreements and serve customer organizations with great transparency and accuracy by means of hierarchical, efficient structures for pricing, discounts, and product listings.
Sales and distribution executives in companies that conduct business with complex enterprises often find it difficult to set up and manage appropriate pricing structures and rebate programs. They also may be challenged to ensure that customers order and receive products only from an approved set of offerings. In consequence, margins and profitability may erode and the quality of the customer experience could decline.
Ensuring accurate pricing for each customer
By extending standard Microsoft Dynamics 365 with Avanade Trade Organization Structure, you simplify the management of pricing structures, rebates, and product delivery while increasing your control. You can elegantly set up multilevel hierarchies for customer organizations in your ERP system and use them to implement pricing structures and rebates.
When, for example, your large customers manage purchasing centrally, but you charge them different prices in the various markets they serve, you don’t need to create price groups for each business entity. Instead, you enter negotiated prices at the highest level of the customer organization. These prices will apply to subordinate business groups unless you create specific pricing for them. In the same way, you can set up rebates for a corporate entity and its local subsidiaries.
If rebates and discounts apply globally to the entire enterprise but pricing is specific to some local subsidiaries, you don’t need to configure the right combination of pricing and rebates for each entity. The solution eliminates these steps and thereby also helps you avoid calculation errors that can quickly eat into margins and profits.
Flexible, transparent management of discounts
In Trade Organization Structure, you can set up as many rebates and discounts for a customer as you wish, naming them in a way that makes sense. Thanks to the solution’s full integration with the financial management functionality of Microsoft Dynamics 365, you can closely track the impact of rebates on your costs and margins. You can ensure awareness of the origination of rebates and discounts by allocating them directly to financial accounts, for example, for marketing budgets or sales campaigns.
With full transparency of rebates and their impact, you can perform the right, timely decisions and negotiations for the benefit of the organization and still maintain a high degree of specificity with individualized pricing and rebates for all customer companies and business entities.
Reflecting your trade agreements, the solution makes it easy to sell and deliver the right products to customer entities and avoid errors in doing so. You establish item lists of available products for your customers in the same hierarchically structured manner as pricing and discounts. An on-screen warning provides an alert when the user accesses a product that is not listed for a customer.
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Key Benefits
Improve customer satisfaction while maintaining full compliance with trade agreements.
Simplify the administration of business with large, complex enterprises.
Ensure correct pricing and appropriate discounts for each customer account.
Maintain healthy margins and a sound financial performance.
Understand and manage the impact of pricing and rebate structures on your business groups.
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