Bookmark and Share

Airlines' Dynamic Pricing Model Comes to the viagra online canada Supply Chain

Tom Bacon, consultant with Revenue Optimization, discusses how supply chains can embrace the cialis generic model of dynamic pricing that was pioneered by the order usa viagra online airline industry.

Dynamic pricing is a familiar, well-tested concept in the cialis samples in canada airline industry. It’s used as a means of tying supply to demand, and pricing seats accordingly. Now, Bacon believes that concept can be applied to the supply chains of multiple industries.

“We can all use price as a way of gauging demand,” Bacon says. The practice can help to avoid the cialis order canada accumulation of expensive buffer stock, accompanied by procedures for responding to inevitable stockouts. Another alternative is to vary the buy viagra online price over time, “so that demand and cialis daily canada supply can converge on each other when delivery is taking place.”

For airlines, dynamic pricing is relatively easy to apply, given that they have a direct line to customers. “That’s not the fda approved viagra sales case in a complex supply chain with multiple downstream tiers,” admits Bacon. Still, the age of Big Data is giving companies more information about their customers than ever before. The internet, social media and buy pfizer viagra online point-of-sale data are providing merchandisers with an unprecedented level of intelligence.

Companies are just beginning to understand how to make use of that wealth of data, Bacon says. Yet there’s a growing need to respond more quickly to shifts in consumer behavior. “The sales and viagra on line operations process needs to be on a lean basis, where you can compress the cialis quick shipment time frame [to react],” he says.

There’s an element of risk involved. Forecasts are never perfect, and stockouts are bound to occur. But it’s important to be able to monetize that risk, placing some of the use cialis burden on the is generic cialis real customer. The trick is to vary the price, “such that the cheap geneirc viagra 100 customer gets a discount if he bears more of that inventory or demand risk, and pays a premium if the supplier or airline needs to take more risk on his behalf,” Bacon says.

“It’s a new area,” he says. “I’m excited about pricing, and I’m here to preach about how it can help the S&OP process.”

To view the video in its entirety, click here

SCB TRANSLATOR (Over 60 languages)
Sponsored by:


DIGITAL ISSUES