A Break for Price Op?
Christine Blank
Supermarket News, June 21, 2004

Price optimization may be gaining momentum as more chains begin using the technology for pricing, promotions and demand forecasting.

Manufacturers Getting Into the Act

Although food retailers are taking a cautious approach to implementation of price optimization technology, most analysts agree that it will be used by many major U.S. grocery chains in the near future. The retailers won’t be alone.

Technology vendors said a three-way collaboration between grocers, consumer packaged goods manufactures and vendors will be the next step in the progression. Consumer goods manufacturers want to use it for more accurate demand forecasting," said Joel Weingarten, senior vice president of products for DemandTec, San Carlos, California, a major optimization software provider.

Already, DemandTec has been involved in pilot projects in which a CPG manufacture sold a particular trade promotion to a retailer, then used pricing technology to predict demand. "We take into account the best use of trade promotion funds from the vendor," Weingarten said.