Cargill Case Study:
Breaking New Ground and Transforming Pricing
into a Competitive Advantage.

Introduction >

The Need

Solution >

Results >

The Need

In the competitive world of meat processing, price means everything. Margins depend on making the right pricing call—each and every time. And, when competitors offer virtually the same product and are a phone call away, long-term customer relationships rely on offering the most accurate and fair price, for all channels, customers, and products across thousands of situations.

Cargill Meat Solutions knew that its traditional means of pricing—a complex process that involved pricing experts working with internally developed tools—was not hitting the mark. Developing consistent price quotes was made more difficult because meat processors operate in a disassembly or reverse BOM (Bill of Materials) environment where determining costs for individual products is inherently complex. And, downward pricing pressure from customers further impacted margins on each and every deal.

To generate a price list, the Cargill Meat Solutions pricing team had to digest and weigh a myriad of complex and changing variables, including the fluctuating price of the underlying commodity, current inventory positions, and historical sold prices for each cut and customer. With thousands of possible pricing scenarios in this environment, Cargill Meat Solutions focused on pricing core products and used standard formulas for remaining ones—many times leaving money on the table in the process.

While food processors are traditionally thought of as price-takers, Cargill Meat Solutions saw pricing in a different light—as a unique opportunity to engage with customers to achieve sales and margin goals. In order to most effectively use pricing, Cargill Meat Solutions turned to the science-based software solutions of SignalDemand.

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