Product & Solution Information

Margin and Revenue Optimization in the Materials Distribution and Services Industry

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About PROS PROS Holdings, Inc. (NYSE: PRO) provides AI-powered solutions that optimize selling in the digital economy. PROS solutions make it possible for companies to price, configure, and sell their products and services in an omnichannel environment with speed, precision, and consistency. Our customers, who are leaders in their markets, benefit from decades of data science expertise infused into our industry solutions. Visit Our Website https://pros.com/industries/distribution/ Talk to an Expert +1-713-335-5105 | info@pros.com pros.com Want to Learn More? EXECUTIVE BRIEF FOR MATERIALS DISTRIBUTION Copyright © 2020, PROS Inc. All rights reserved. This document is provided for information purposes only and the contents hereof are subject to change without notice. This document is not warranted to be error - free, nor subject to any other warranties or conditions, whether expressed orally or implied in law, including implied warranties and conditions of merchantability or fitness for a particular purpose. We specifically disclaim any liability with respect to this document and no contractual obligations are formed either directly or indirectly by this document. This document may not be reproduced or transmitted in any form or by any means, electronic or mechanical, for any purpose, without our prior written permission. | The Cost of the Status Quo Between cost volatility, manual processes, static segmentation, ineffective change management, and the overall impact of overrides, PROS is finding margin leakage of 2-3%. According to Gartner, companies who invest in pricing systems can expect: 1-5% revenue increase. 2-10% margin increase. 20% lifetime value increase. 80% reduction in manual discount approvals. 4 How much is the status quo costing you? Solutions in Action GLOBAL MATERIALS DISTRIBUTOR A Leading Distributor of Steel, Plastics, and Other Materials Increased revenue and pocket margin through optimized negotiated and non- negotiated pricing. Automated ability to update prices regularly based on fluctuating market prices and/or raw material costs. Reduced time required for quoting and contracting; streamlined quote-to-cash process for focus on value-add activities. Gained actionable, granular insight into customer and product profitability. Improved ability to quickly identify and pursue key margin/revenue opportunities. GLOBAL INDUSTRIAL PRODUCTS AND MATERIALS DISTRIBUTOR A Large Distributor of Raw Materials, Tools, Fittings, Hardware, Valves, etc. Identified and corrected root causes of discount-related margin leakage at a granular level. Equipped sales with key margin improvement opportunities and pricing guidance for negotiated pricing. Automated the price-setting process for more than half a million items in the product catalog. Generated $4 million above target revenue; anticipates annual gross profit lift of $18 million. Reduced quote turnaround time, improved sales force confidence, and aligned sales compensation with pricing goals. 4. 2019: Gartner Market Guide for B2B Price Optimization and Management Software EB102020v01

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