Friday, July 19, 2024

Pricing strategies struggle amid supply chain chaos

A recent study reveals that 92% of Australian businesses are struggling to deal with market fluctuations caused by Covid-19 related supply chain disruption.

The study was conducted by Forrester Consulting on behalf of intelligent pricing platform, Flintfox International. It found that Australian businesses will lose out on $565,091 every year in lost productivity, due to the ongoing impact of supply chain issues.

Businesses with outdated pricing management systems will face exacerbated issues and struggle to navigate the continued supply chain chaos, according to the study.

Flintfox CEO John Moss says margins have never mattered more than now, due to the continued uncertainty of the pandemic.

“As ongoing supply chain issues continue to wreak havoc on the Australian economy, it’s becoming increasingly critical for businesses to be able to respond rapidly to market fluctuations,” he says.

“Moving to an intelligent pricing model will enable businesses to better handle operational complexities and future-proof their businesses from harmful market events.”

Key findings

64% of businesses say that the pandemic has provided a renewed focus on developing a pricing strategy that maintains demand and manages margins.

Almost one in two Australian decision-makers see pricing playing a key role in improving sales volume and growth.

92% of Australian businesses report that Covid is having a critical impact on the ability to manage pricing across their product range, with 36% stating they are unable to keep up with the scale of real-time price fluctuations occurring in the market.

Existing business models are preventing businesses from being able to manage the current pace of change, with 44% still relying on manual processes to manage price fluctuations.

Many Australian businesses are struggling to deal with the current situation, with 67% of firms claiming that poor data quality and capture is hampering the ability to keep on top of market fluctuations.

The research indicates that a shift to real-time, automated management of pricing, will be a key business priority to manage the continued supply chain disruptions in the year ahead, with 17% of Australian businesses set to invest in intelligent pricing technology in 2022.

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