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Outokumpu Pricing Office

Continuous price leakage management helps Outokumpu save millions of Euro per year

Outokumpu is amongst the world’s four leading producers of stainless steel. Outokumpu operates in some 30 countries and employs 8 000 people.

The power of pricing is well known. A small increase in a company’s actual earnings can have a substantial effect on bottom line results – as can the identification and management of price leakages, i.e., costs affecting the pocket price. The challenge is to develop – and to implement – a model that actually works in practice. Especially in a multinational, multi-million-transaction-per-year corporation like Outokumpu. On the other hand, the mere scale of economics makes the potential gain huge.
The solution was to develop a new, global price management process, and to implement a price waterfall analysis system based on Astrada4.

“The solution is very effective. I am also impressed by Astrada’s willingness – and ability – to solve the problem, which, honest to say, was not very clear to us from the beginning. Undoubtedly, Astrada did a pretty outstanding job on this!” says Steve Hudson, Vice President Head of Vertical Profitability Office, Outokumpu Oyj.

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