Case Study: General Motors achieves a data-driven global parts pricing strategy with PTC Service Parts Pricing

How GM is Using Data and Smart Analytics to Create a Global Parts Pricing Strategy

General Motors’ service parts organization — responsible for purchasing and pricing more than 1.5 million spare parts and up to 8 million SKUs across 30+ countries, 72 warehouses and 32 processing centers — faced inconsistent, largely manual pricing practices that limited cost savings and revenue. Seeking a medium-term, rapidly deployable solution to standardize pricing across its global brand portfolio and four market regions, GM selected PTC’s Service Parts Pricing after evaluating seven options.

PTC implemented Service Parts Pricing alongside middleware to normalize data from 120 applications (including legacy systems), piloting the system in Dubai in December 2009 and rapidly rolling it out to Australia, South America, North America and Shanghai. PTC also supported hands-on and on-demand training and helped GM create an agile pricing process; the result: automated pricing for roughly 80% of parts that produce 20% of revenue, enabling experts to focus on the top 20% of parts that generate 80% of revenue, reduce errors, improve coordination and increase profitability.

General Motors

Andrew West

GM Manager, Global Pricing Process & System Optimization