Enterprise Revenue Dynamics

Revenue Management

Protect Profitability with Effective Revenue Management

For companies operating across multi-tiered distribution networks, the management of pricing incentive structures can be equally complex. Discounts, rebates and chargebacks and other incentives can vary by product, distributor, sales volume, delivery dates or any combination of variables. It’s no wonder that companies miscalculate the amounts owed to their trading partners, resulting in reduced revenue, inaccurate accounting and lower profit margins. Instead, they must implement a pricing dynamics system that can define, automate, and execute complex pricing structures to improve financial integrity and protect the bottom line.

Getting to the Source
Much of the “how” companies are in business together lies within pricing dynamics – the determination, management, and execution of contract pricing terms and complex incentive scenarios. Using manual and disconnected processes for pricing and revenue management, companies simply cannot deliver on the back-end execution of complex contracts. The negative impact on the bottom line is difficult to ignore.

Revenue leakage is something that few businesses like to discuss, but the issue continues to consume capital and erode gross-to-net margins. According to industry analysts, revenue leakage can cost companies as much as 1% to 2% of gross revenue.[1] The causes of revenue leakage range from incorrect pricing tiers to noncompliance with standard contract terms and conditions to overpayment of chargebacks or other incentives.

Minimize Processes. Maximize Profit.
In today’s environment, companies with complex distribution chains and pricing scenarios must align their pricing strategy with a revenue management system that will automate calculations, payments, qualifications, and incentive programs. This will improve pricing management throughout the channel network, identify revenue opportunities, and restore profit margins.

Learn about Revitas™ Pricing Dynamics
An integrated approach helps organizations streamline revenue management at each point of the distribution chain.  Learn how Revitas Pricing Dynamics enables companies to reclaim lost revenue and reduce gross-to-net profit margin erosion.

1 Gartner, Inc., 2009.