“The co-operation between our line organization and Capacent’s consultants with their down-to-earth approach functioned really well. We had not yet found a partner who could perform in the entire spectrum – from the top management all the way to our factory floors, where the vital changes have to take place. But Capacent performed in every aspect; the result speaks for itself.”
Project manager - Outokumpu
”Capacent has increased the speed and professionalism in our change work by creating a sense of urgency through clear communication on the reasons for change and detailed targets on various organizational levels. Capacent has supported us in a dedicated manner. We can already see results and expect them to materialize further going forward”
CFO - Caverion Corporation
“Capacent´s major contribution was their analytical ability combined with drive and true experience from similar projects.”
Project Manager - Billerud Korsnäs
500+ MEUR in sustainably reduced inventory within 18 months from start of implementation. One of the project key success factors was the extremely good co-operation between customer and Capacent personnel all the way from the factory floor to the top management.
Implementation of product pricing processes and a discount framework
Read the full case here: Tikkurila Sweden Case
Tikkurila is a Finish manufacturer of premium paint with well renowned local brands such as Beckers and Vivacolor. Customers include paint professionals, private consumers, and industries.
Annual revenue: 564 MEUR
Market served: Scandinavia, Eastern Europe, China
Declining margins in the Swedish market. When the trend turned towards stagnating sales and declined margin structural problems surfaced and became visible within the organization. Tikkurila decided to use external support from Capacent to find the root cause of the profitability issues.
What we did
The quantitative and qualitative assessment led to long-term improvements in product and customer pricing.
Initiated with a pricing and profitability analysis & qualitative assessment of pricing to highlight that profitability issues were due to a large spread in kick-back bonuses and discounts.
Followed with a plan for long term improvements where the analysis revealed variations in price levels that needed to be managed to enable fair pricing towards the customers.
A local cross-functional pricing group was also formed in order to be more proactive in product pricing.
What we achieved
A long term impact on profitability and sales efficiency. We developed a harmonized, actionable discount framework for the professional market that led to increased transparency and clear mandates within the sales organization.
Provided sales representatives and management with the right tools to efficiently generate price level suggestions.