Reduce Margin Siphoning and Increase Control

In the High Tech industry, there are often few, if any, controls around pricing discounts or assurances that pricing guidelines are adhered to, leading to unnecessary price concessions. Discounting is often based on volume estimates that are never realized, resulting in revenue leakage on contracts. Delays in responding to frequent RFPs from CEM and OEM customers lead to lost opportunities. A lack of contract controls may also result in Sarbanes-Oxley compliance issues. Poor channel visibility further reduces margin potential when contract manufacturers only purchase against the most favorable contracts, regardless of end customer.

Model N's domain specific Revenue Management solutions help High Tech manufacturers increase contract value and margin by reducing invoice and order pricing errors, improving controls over price concessions, and enhancing customer compliance tracking. In addition, integrated channel management capabilities prevent contract manufacturers from siphoning margin.

We chose Model N because their vertical offering for the semiconductor industry best coincided with our business model, and its scalability and ease of use allowed for quick implementation and adoption by our sales organization. Model N enables us to measure the percentage of transfer activity between regions and significantly reduce closure turnaround time.

Director of Sales and Internet Applications
Microchip Technology