What do you recommend for "Program Pricing" discounts? Advanced Pricing?
We use Oracle Order Management, Purchasing and Advanced Supply Chain Planning.
Our company makes printed circuit boards. We work mid-way through the supply chain of finished electronics items, designed by the end-use customers. Compared to the circuit board industry, there are fewer players in the market of the raw materials we buy, so the OEM (end use) customers of our products will sometimes make volume pricing deals with our vendors.
With me so far? So we buy raw materials like normal, and then approximately 10% of the time we can get a discount, when the purchase supports a build of a specific customer product. This is more common with customers in the defense industry, but it can happen elsewhere. The customer gives us a "Program Number" and identifies the discount our vendors should provide us. The supplier is only obligated to honor that discount if we provide the program number.