Navistar: Pricing Optimization & ERP Integration for Enterprise Excellence
How Navistar optimized enterprise-wide pricing processes across acquired companies with automated BOM cost calculation and strategic pricing optimization
A Leading Commercial Truck Manufacturer
Navistar is a leading manufacturer of commercial trucks, buses, and diesel engines. With a global presence, the company is known for its innovative approach to transportation and commitment to delivering high-quality vehicles and parts. As Navistar expanded through acquisitions, integrating diverse pricing and cost management systems became a significant challenge.
Visit navistar.comCompany Snapshot
Industry
Commercial Trucks & Transportation
Headquarters
United States
Reach
Global Manufacturing & Distribution
Specialty
Trucks, Buses, Diesel Engines
Fragmented Pricing Across Acquired Companies
Navistar faced significant pricing challenges as a result of acquiring multiple companies, each with its own pricing models, cost structures, and legacy systems.
Inconsistent Pricing Structures
Disparate systems from a dozen acquired companies resulted in pricing inaccuracies across trucks and parts.
Inefficient Cost Calculation
Manual efforts to calculate the Bill of Material (BOM) costs were time-consuming and error-prone.
Revenue Loss & Competitive Disadvantage
Some prices were too high, leading to lost sales, while others were too low, leaving potential revenue on the table.
Limited Data Integration
A lack of system interoperability made it difficult to streamline and automate pricing calculations.
Solutions and Key Steps Taken
A phased approach to pricing transformation, from assessment to full deployment and automation.
System & Data Integration Assessment
Captivix conducted a comprehensive assessment of Navistar's pricing infrastructure across all acquired companies to identify gaps and define a unified strategy:
Evaluated existing pricing models from acquired companies
Mapped inconsistencies across different BOM cost structures
Determined technical gaps preventing system interoperability
Automated Bill of Material (BOM) Cost Calculation
Captivix developed and deployed a unified BOM cost calculation engine to standardize pricing across Navistar's operations:
Developed a unified pricing engine standardizing cost calculations across different truck and part configurations
Connected disparate databases to generate real-time cost estimates
Leveraged algorithms to determine optimal pricing strategies
Strategic Pricing Optimization
Captivix implemented strategic pricing optimization to ensure Navistar's prices were competitive and profitable:
Incorporated competitive analysis and real-time market trends for market-responsive pricing
Prevented underpricing by setting minimum margin thresholds
Reduced manual intervention with automated workflows for pricing approvals
Implementation & Training
Captivix ensured a smooth rollout of the new pricing engine and prepared Navistar's teams for long-term success:
Rolled out the new pricing engine across Navistar's divisions
Conducted training sessions for sales, finance, and operations teams
Established analytics dashboards to track pricing performance and adjust as needed
Measurable Results
Transformative outcomes that speak to the power of automated pricing optimization and enterprise system integration.
$10M+
Additional Sales Revenue
Optimized pricing strategy contributed to tens of millions in additional sales.
95%+
Pricing Accuracy
Reduced pricing errors by integrating automated cost calculations across all divisions.
1000s hrs
Manual Work Saved
Eliminated thousands of hours previously spent on manual pricing adjustments.
Unified
Enterprise Pricing
Seamless integration of pricing across all acquired businesses into one system.
“The Captivix team played a crucial role in optimizing Navistar's pricing systems. His innovative approach to IT and pricing automation streamlined operations and significantly enhanced our sales and profitability.”
Rodney McGee
Navistar
Technologies & Tools Used
The technology ecosystem that powers Navistar's unified pricing operations.
Oracle ERP
Enterprise ERP
Microsoft Dynamics
Acquired Systems
Custom BOM Pricing Engine
Automation
Power BI
Analytics
AI/ML Pricing Algorithms
AI
Data Integration Platform
Integration
Conclusion & Future Vision
Navistar's successful pricing transformation unified enterprise-wide pricing processes, automated BOM cost calculations, and optimized pricing strategies. Moving forward, the company aims to:
AI-Driven Pricing Analytics
Leverage AI-driven pricing analytics for real-time demand-based adjustments.
Supply Chain Cost Optimization
Further optimize supply chain cost calculations to enhance profitability.
Expanded Automation
Expand automation capabilities for continuous pricing improvements.
This case study highlights the power of automated pricing optimization and ERP integration in transforming enterprise-wide operations, enhancing profitability, and driving sustainable growth.
Project Duration
Multi-phase pricing transformation across acquired companies
Scope
System integration, BOM automation, pricing optimization, and training
Outcome
Tens of millions in additional revenue with unified enterprise pricing
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