Insight

Pricing in an era of turbulent supply chains and rising costs

Our supply-aware dynamic pricing approach can help companies manage through a time of turbulent supply chains and rising costs.

Sudipto Banerjee

Sudipto Banerjee

Principal, Pricing & Commercial Excellence Leader, KPMG US

+1-404-907-6173

Himanshu Mishra

Himanshu Mishra

Advisory Managing Director, Strategy - COE, KPMG US

+1 408-367-5764

Z. Maria Wang

Z. Maria Wang

Director Advisory, Strategy - COE, KPMG US

+1 617-988-1000

Demand surges and an extraordinary breakdown in global supply chains are raising the cost of everything from fertilizers to silicon chips. Repairing and restructuring supply chains will take many months and major investments. But companies can use strategic pricing now to manage rising costs, product shortages and severe delays—while maintaining or even expanding margins.

Using a new approach that we call supply-aware dynamic pricing (SADP), companies can adapt to shifting supply chain realities by adjusting the price of every SKU on a monthly, weekly, or even daily basis.

This brief paper, describes how SADP can help companies navigate today’s unfamiliar and volatile landscape, and set the stage for step-changes in pricing excellence, including organizational changes that will pay dividends for years to come, in good times and bad.