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Background

SAP has partnered with Vendavo, a leading provider of price management and optimization software, to address the pricing challenges facing today’s global B2B companies. SAP offers a solution extension – SAP Price and Margin Management by Vendavo – to improve pricing and margins with more effective and efficient pricing processes. SAP Price and Margin Management by Vendavo (SAP PMM) supplements the price execution capabilities available in SAP ERP and SAP CRM with functionalities for deal negotiation, price analytics and optimization, and price administration.

Rationale for Integration

Today, SAP ERP and SAP PMM are integrated to enable price management and optimization. SAP ERP and SAP CRM are also integrated to enable (and accelerate) the lead to cash process. What is missing is the integration of price management and optimization in the lead to cash cycle, i.e. an integration of SAP CRM, SAP PMM and SAP ERP. As you can imagine, the integration of PMM in the lead to cash cycle can benefit multiple processes in Sales, Service and Marketing LOBs. For example, a marketing professional can create marketing segments by customer price sensitivity or simulate the sales effect of a price increase.

Deal Management for Quotes and Contracts

Perhaps the biggest benefit of the integration of SAP CRM, SAP PMM and SAP ERP will be to empower sales teams to negotiate consistent and profitable deals for Quotes and Contracts managed in SAP CRM and SAP ERP. The integration with PMM will enable sales users in SAP CRM / SAP ERP to evaluate the profitability of deals (i.e. Quotes or Contracts), request price approvals and comply with corporate pricing rules and policies. Furthermore, the integration of Quotation Management and Contract Management in SAP CRM / SAP ERP with Deal Execution in SAP PMM will further accelerate the lead to cash cycle for sales transactions that require deal and price analytics.

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Your Point of View

I’d like to hear your point of view on the integration with Vendavo.

  • What are the use cases for integrating price management and optimization in the lead to cash cycle?
  • How do you empower your sales teams to negotiate profitable deals? How do you enable deal negotiation and approval?
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