Now it all adds up for Syngenta
Syngenta redefines profitability by leveraging SAP margin optimization solutions by Vistex to optimize pricing and rebate processes
“Vistex allows us to manage rebates and price maintenance with more accuracy, speed, and confidence that we are operating in complete compliance with our business objectives.”
Marcela Simioni
LATAM SAP Lead, Syngenta
Overview
Impeded by a solution with high maintenance costs and low scalability, Syngenta sought a more efficient, flexible and cost-effective solution to eliminate challenges in its pricing and incentive processes. The solution would also need to eliminate constant integration failures experienced with its current solution, which impacted approval workflow, pricing simulations, campaign models and ultimately, time to market.
Rebates are an essential part of their loyalty program. They contain several complex variables (customer segmentation, product families, triggers, purchase growth, etc.) with values per customer that must be accessible in real time. Additionally, they needed a pricing and deals solution that was robust enough to handle the complexities of their varying deals. Their goal was to remove legacy tools, simplify their tech stack and reduce maintenance costs. They also needed improved pricing and promotional campaign management, an approval workflow as a standard part of the solution, and the flexibility to adjust programs based on varying criteria and scenarios.
Syngenta worked with Vistex to address the inability to effectively:
• Define rules and procedures for the loyalty program
• Categorize the relationship with each distributor and pay according to performance
• Reduce the high level of dependency on people by simplifying complex processes
Solution
Syngenta turned to SAP margin optimization solutions by Vistex to help support its profitability goals by streamlining its complex price setting, offer management, commissions and rebate processes. With the Vistex implementation, Syngenta alleviated the challenges and compliance risks associated with complex program variables, gaining greater flexibility and agility. In addition, selecting this solution would support their goal of reducing architectural complexity and maintenance costs.
Vistex Solutions for SAP pricing helped Syngenta reduce infrastructure costs and better support global agreement processing. Integrating localized pricing and business rules now gives Syngenta the flexibility to adapt to most business scenarios. Cost savings were achieved by reducing support costs associated with integration errors. Implementing a mass-upload feature for commissions and rebates accelerates processes, while online reports enable faster decision-making.
Results
Replacing an existing solution with SAP margin optimization solutions by Vistex enables Syngenta to leverage seamless, integrated pricing capabilities, reducing IT costs by 53% and reducing integration issues and subsequent urgent support requests. Since this solution is embedded in SAP ERP, Syngenta can leverage integrated pricing conditions alongside other SAP conditions to adjust business strategies and localization, and to update business rules to eliminate VAT challenges. Simplifying pricing updates and approval workflows also helps to reduce errors.
Syngenta gained visibility into complex rebate programs with several diverse variables at the customer level and eliminated manual processes. Setting rebate program parameters used to take 10 to 15 days. With the implementation of the massive upload tool, business areas can accelerate the process and reduce the time to approximately 4 hours. The ability to define rules and procedures for Syngenta’s distribution network, and to categorize and reward them based on performance, has provided distributors with a competitive advantage and enabled the building of a high-performance network.
About
Global Auto Manufacturer
Aspiring to be the most collaborative and trusted team in the agriculture industry, Syngenta provides farmers with the best seeds and crop protection products to increase their prosperity. The company has become a global leader in innovation for a more sustainable future, supported by 4 business units that meet customers' needs. They are committed to improving seed performance, launching differentiated traits and promoting sustainable agriculture practices.
Headquarters: Basel, Switzerland
Industry: Agriculture
Products: Seeds and crop protection
Revenue: $21 billion
Employees: 53,000
Vistex solutions implemented:
SAP margin optimization solutions by Vistex
- SAP Incentive Administration by Vistex
- SAP Data Maintenance by Vistex, pricing