A Price Management And Optimization Tool
Customers’ Need For Transparency
Grocery retailers operate in a highly competitive environment; with the rise of the e-commerce channel, it’s also an increasingly transparent one. Consumers are looking for more and more value when shopping for groceries and it’s easy for them to compare prices across retailers.
Improving The Value Proposition
A leading European grocery retailer wanted to improve the overall value proposition for its customers, both realized and perceived. In order to effectively execute its pricing strategy, it realized that the pricing approach, process and tooling needed to be upgraded. The client reached out to Oliver Wyman for the experience in supporting clients upgrading their commercial capabilities, the suite of decision support tools available and the collaborative, co-creation approach.
Providing A Software With Advanced Analytics Embedded
We designed state-of-the-art software that allows the retailer to execute its strategy efficiently and to balance the economic needs of the business, its price position compared to competitors, and logical pricing within the product architecture. Our approach brought advanced analytics to this balancing act, providing the client with fundamentally better recommendations for its daily decision making. The analytics are integrated in a modern, easy-to-navigate workflow and allow the client to scale its operations in the future. Solutions like this not only embed new capabilities deep within our clients’ organizations but also keep creating an impact long after the end of a project.
Accelerating The Transition To Sustainable Homes
A National Challenge
The Dutch government has set a national ambition to be CO2 neutral by 2049. To meet this goal, most of the 7.7 million homes in the Netherlands must be renovated and connected to energy sources which are free of emissions. This challenge requires the national government, cities, energy companies, ‘woningcorporaties’, ‘VVEs’ and millions of private individuals to take action.
The Cost Of The Transition To More Sustainable Homes
Modernizing properties often requires a significant up-front investment which pays off in the long-term. Oliver Wyman was asked to review which financing options are already available to private individuals and to make suggestions for additional financing instruments to ensure home owners can afford the transition. The project included a series of interviews to map the landscape of existing initiatives, review of international case studies and a segmentation of home owners in the Netherlands to better understand their needs and identify which products can fulfill them.
Spurring Home Owners Into Taking Action
In addition to the cost, many home owners are deterred from modernizing their homes because of the time and effort required to make the right decisions and execute them. Oliver Wyman was asked to outline how this process could be simplified and digitized, with particular emphasis on helping home owners select the best financing option. This included interviews with the largest financing providers in the Netherlands, outlining the customer journey and identifying decision parameters for home owners.
Taking Credit Risk Capabilities To The Next Level
A Manual And Excel-based Process To Manage A Key Risk For Banks
Stress tests of a bank’s loan losses under different macro-economic scenarios are a key component of credit risk management. Our client, a large bank, was looking to perform these tests in a more automated and reliable manner and move away from a landscape of Excels which are prone to error and hard to maintain.
One Platform To Perform Stress Tests
Together with our client, we established a robust Python code base which provides a lot of flexibility to run stress tests on the bank’s loan portfolio. Any exercise can be run independently, and insights on underlying drivers and data are available without any lead time. This platform was developed with a team from our client over a significant period of time and its functionality was improved and updated repeatedly.
Ensuring Compliance With All Regulatory And Internal Standards
Stress testing models are subject to methodological requirements from regulators and banks’ internal standards. We ensured that the methodology and results are robust enough to meet the requirements of different regulatory processes in which they are used.