Case Studies

How PROS pricing solutions helped a major oil & gas company realize a $350M margin expansion

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BEFORE WITH PROS OUTCOME • The company implemented PROS Smart POM pricing solutions to optimize pricing processes and maximize profit captured in each market segment. • PROS pricing solutions were first implemented in 2 key countries to maximize time to value and generate a quick ROI, followed by other regions. • Pricing managers could now deliver optimized prices based on market conditions and execute same - day price changes on time • Salespeople gained visibility into the detailed profitability of spot and term deals. The customer, a global oil and gas company, was experiencing a number of challenges with their pricing processes. These included: • Different regions and business units were setting prices differently, leading to negative margin transactions that no one was accountable for • A lack of visibility into term contracts limited the company's negotiating power and decision - making ability • Difficulty in targeting customers and closing profitable deals due to a lack of pricing and sales performance accountability • The inability to react quickly to market forces and prevent price and margin erosion How PROS pricing solutions helped a major oil & gas company realize a $350M margin expansion Company description: Multinational oil and gas company Website: Headquarters: Number of employees: 50,000 - 75,000 Founded: Industry: Energy & Chemicals Revenue: $100 - 200 billion $350M margin improvement The company expected to significantly improve margins over the first year of using PROS. Reduced margin leakage PROS helped eliminate negative margin transactions through improved visibility into term contracts, more effective targeting of customers, and the closing of profitable deals. Faster analysis Finance managers could now analyze contracts for multiple regions, and the company could react quickly to market forces and prevent destructive price erosion. Faster pricing Increased visibility allowed the company to set more accurate prices in real time throughout the day and execute better negotiations. PRO FIT A B LE G RO W T H PRO S SM A RT PO M

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