In late October 2012, the price management solution developer Vistaar Technologies announced today that Beam Inc. has completed the third major phase of the Vistaar beverage alcohol pricing solution implementation. The latest phase should allow Beam to increase visibility across its entire value chain while managing multiple pricing protocols for 3,500 unique stock-keeping units (SKUs) across the company’s 75 US distributors.
Since phase-one implementation in September 2009, Beam has reportedly used Vistaar’s pricing solution to first establish and execute a standardized price structure planning platform, and then drive price execution with its distributors. The third-phase rollout incorporates the newest release of Vistaar’s pricing solution to increase visibility across all price structures and workflows.
I think the continued expansion is a good example of the extensibility and configurability of Vistaar’s solution—Beam began with an initial project, which was quite broad and has brought significant value, and chose to continue extending the solution in additional areas of value. It is a good sign that the company completed the initial implementation (rather than spending years getting it working) and chose to continue.
The other notable thing is that since Vistaar began working with Beam, the market recognized that this was a solution for the beverage alcohol market that was distinct, and Vistaar has won about eight additional deals in the market since. Current implementation times are about three months on average, and Vistaar customers represent about 40 percent of the market in the spirits industry in terms of revenue. Needless to say, while pricing solutions implementations can bring significant tangible benefits, they are by no means a piece of cake and must be well thought out, as in the case of Beam.