Cost Management
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      1. Intuilize Knowledge Base
      2. Price Optimization & Management
      3. Cost Management

      How does Intuilize help manage vendor cost increases?

      Strategies for effectively managing vendor cost increases to maintain margins and ensure timely price updates

      Intuilize provides powerful tools to help distributors effectively manage vendor cost increases, ensuring margins are protected and pricing remains competitive. Our approach addresses the common challenges distributors face when vendors change their pricing.

      "One of the biggest sources of margin erosion is delayed response to vendor cost increases. Our system helps you identify, prioritize and implement appropriate pricing responses to maintain healthy margins."

      Identifying Cost Increase Impacts

      Our system helps you understand the full impact of vendor cost changes:

      • Automatic identification of affected products
      • Calculation of margin impact by product and customer
      • Prioritization of updates based on financial impact

      Streamlining Cost Update Processes

      Intuilize helps streamline the often cumbersome process of updating costs:

      • Automated cost file processing
      • Batch updates for affected products
      • Validation against historical trends

      Pricing Response Strategies

      Once cost changes are identified, our system helps develop appropriate pricing responses:

      • Selective pass-through recommendations based on price sensitivity
      • Customer-specific pricing adjustments
      • Tiered implementation strategies for significant increases

      Margin Erosion Prevention

      Our system prevents the common problem of margin erosion due to delayed price updates:

      • Identification of products with misaligned cost and price
      • Calculation of margin erosion impact
      • Historical trending of margin performance
      • Alerts for products requiring immediate attention

      Primary Supplier Optimization

      We help optimize your primary supplier designations:

      • Analysis of purchase patterns to identify most-used suppliers
      • Identification of mismatches between designated and actual primary suppliers
      • Recommendations for supplier consolidation opportunities
      • Monitoring of supplier performance metrics
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      Implementation Approach

      Our approach to cost management includes:

      1. Initial assessment of current cost management processes
      2. Identification of gap areas where margin erosion is occurring
      3. Implementation of improved cost update workflows
      4. Integration with price optimization strategies
      5. Ongoing monitoring and adjustment

      By effectively managing vendor cost increases, distributors can protect margins, maintain competitive pricing, and ensure pricing remains aligned with market realities. Our system provides both the visibility and tools needed to respond quickly and strategically to vendor cost changes.