Pricing No Longer Has to Be a Headache: How SAP CPQ Pricing Helped Metinvest
What do airline tickets, the hotel business, and metal sales have in common?
The price is never fixed. It fluctuates depending on demand, order volume, delivery conditions, product specifications, market conditions, and hundreds of other variables.
Imagine you are managing sales in a large industrial company with a vast product range, like Metinvest. Your client wants to buy several thousand tons of rolled metal. You open Excel—and the biggest nightmare for any manager begins:
● How to calculate the base cost considering current quotes?
● Which logistics model to choose—sea, rail, or road transport?
● Have duties and taxes in different regions been accounted for?
● What will the final margin be after applying discounts?
If each request takes hours of calculations and dozens of approvals between departments, it not only exhausts employees but also complicates and slows down the process. Meanwhile, the client may turn to someone who offers a more transparent and faster pricing calculation.
So, when your manager gets stuck in calculations once again, they might make the only logical decision—pound their fist on the table and say, "I need a proper solution!", thus initiating the change process.
How SAP CPQ Pricing Helped Metinvest
Metinvest faced this challenge in the past. As a result, all business requirements were addressed with a solution based on SAP CPQ Pricing (CPQ), implemented by Metinvest Digital within the Metinvest holding.
To understand the scale of the problem, consider a typical order in the metallurgy industry:
● Thousands of SKUs with different parameters: chemical composition, geometry, steel grade, additional coatings.
● Complex logistics: shipments may pass through multiple transport chains with varying costs.
● Different markets with unique conditions: taxes, currency risks, insurance, legal restrictions.
● Individual discounts and rebate programs: for dealers, strategic partners, and major customers.
Previously, this process was chaotic: manual calculations, numerous approvals, and constant adjustments. From the first inquiry to the final commercial proposal, several days could pass—at best.
The SAP CPQ Pricing module resolved this by enabling the management of millions of records in pricing tables, ensuring role-based access for marketing teams across different assets, generating high-quality reports, and providing full functionality access from various devices.
Over time, business processes have undergone minor changes, which have been reflected in the technical implementation. However, the solution allows for easy and rapid functionality adjustments, positively impacting business growth.
What Changed at Metinvest After Implementing SAP CPQ Pricing?
1. Managers No Longer Calculate Prices in Excel
Previously, commercial offers were put together on the fly: marketing prepared base prices, finance checked profitability, logistics assessed costs, and legal teams handled tax compliance. This process took hours or even days.
Now, SAP CPQ instantly considers all variables and automatically calculates the final price. The manager simply inputs the order parameters and immediately receives a ready proposal for the client.
2. Logistics Is No Longer a Headache
Depending on the market, products can be delivered by sea, rail, road, or a combination of these methods. Previously, managers manually selected the optimal option, which often led to errors and profit loss.
SAP CPQ independently calculates the most cost-effective logistics scenario, factoring in all expenses and risks.
3. Flexible Work with Discounts and Loyalty Programs
SAP CPQ automatically applies discounts and bonus programs, tailoring them to the deal's conditions. The system prevents uncontrolled discounting, helping to protect the profitability of transactions.
4. Scaling to Global Markets
Different countries have different taxes, duties, and insurance requirements. Previously, these factors required separate calculations, slowing down the process.
Now, SAP CPQ automatically adjusts prices to local conditions. For example, if a company sells in the EU and the Middle East, the system considers all aspects of customs clearance, certification, and taxation.
Conclusion: SAP CPQ Is Not Just Automation, but a Strategic Advantage
Pricing in B2B is always complex: numerous variables, intricate calculations, and constant approvals. But when the process becomes faster and clearer, it saves time and helps close deals without unnecessary hassle.
If you're interested in learning how similar solutions can streamline your work—reach out! We would be happy to discuss the possibilities for your business.
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📩 Write to Us Directly : Vasiliy.Maksimchuk@metinvest.digital
