Case Study: Philip Rosenau Co. Inc.

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Philip Rosenau Co. Inc. selected Strategic Pricing Associates to save time in managing manufacturer price increases and provide flexibility to modify and customize forms, screens, and fields in the system.

“We have been very pleased with our Epicor Prophet 21 implementation. We went live on time and under budget. Epicor Prophet 21 was ready to go out of the box, without a lot of customization required…The Strategic Pricing module essentially paid for the whole Prophet 21 implementation process in about a year.

      – Scott Holland, Executive Vice President | Philip Rosenau Co. Inc.

Company

Philip Rosenau Co. Inc. is a diversified distributor of sanitary maintenance supplies and equipment that has been supplying cleaning solutions to the janitorial industry for nearly 60 years. Serving Pennsylvania, New Jersey, Delaware, Maryland, and Washington, D.C., the company employs 75 people in three offices, including a 65,000–square foot distribution center in Warminster, Pennsylvania, and two satellite offices and warehouses in West Chester, Pennsylvania, and New Castle, Delaware.

Challenges

  • Provide a Northeast janitorial/sanitary distributor with the business data, flexibility, and visibility into pricing to support growth.

Solution

  • Epicor Prophet 21 with Strategic Pricing

Benefits

  • Gross margins are up 2% while using Strategic Pricing
  • Saved time in managing manufacturer price increases
  • Flexibility to modify and customize forms, screens, and fields in the system
  • Seamless integration with third party applications

Focus on pricing improves margins

Holland notes that the Epicor Prophet 21 pricing service template helped Philip Rosenau considerably with pricing, which is not typically standardized in jan/san distribution. “Prophet 21 saves us countless hours in managing manufacturer increases,” he states. “With the previous system, item costs had to be changed manually, which was very cumbersome, considering there are more than 50,000 items we can supply.”

In addition, Philip Rosenau has made effective use of Strategic Pricing, a pricing architecture based on the principle that there are many small margin opportunities which, in aggregate, can yield 2% in additional pricing margin points for the distributor. It involves detailed segmentation of a distributor’s customers by size (from “tiny” to “huge”) and type (“core” and “non”–core”), profiling of their price sensitivity, analysis of past pricing performance, definition of new pricing standards, and development of metrics to support pricing processes and compensation. Recognizing the value that strategic pricing would provide to distributors, Epicor formed an exclusive relationship with Strategic Pricing Associates (SPA) to seamlessly integrate a strategic pricing module into its Prophet 21, Eclipse, and Prelude products.

According to Holland, “The Strategic Pricing module has improved our gross margins by about 2 percent, enabling us to recoup our investment quickly; it essentially paid for the whole Prophet 21 implementation process in about a year. The integration of Strategic Pricing and Prophet 21 was so easy; we could automatically generate sales data for SPA’s analysis, and then import their files back into the ERP. Best of all are the security and approvals levels that are built in, so we have complete visibility and can analyze and control pricing changes and/or exceptions.”

Click here to read the entire Philip Rosenau Co. Inc. case study.

Click here to read more SPA case studies.

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