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In order to control price deviations at One Quote level, a custom approval process has been built. We built it in order to manage potentially different approvers per product lines.

I/ Approval fields calculation during price configuration

  • List of OQLI fields used on the approval process:
    • GBU
    • Estimated Annual Volume
    • Quoted Price
    • Quoted Margin
    • Price Guidance
    • Margin Guidance
    • Price Floor
    • Margin Floor
    • GMD Approval
    • RMD Approval
    • Approver Role
    • Approval Status
    • Approver


  • At One Quote line item level as soon the "Quoted price" is edited, the system calculates dynamically if there is an approval needed or not:
    • Depending on the deviation one of the 3 roles below may need to approve:
      • RMD (Regional market director)
      • GMD (Global market director)
      • PAM (Product Attribute Manager)

To calculate the RMD and GMD approver role we use the corresponding approval thresholds % stored on the related volume bracket and we calculate at OQLI level the "GMD approval" and "RMD approval" threshold unit values.

The logic of these two fields calculation is different depending on the GBU:

  • If the GBU is Novecare we calculate a margin threshold we compare with the quoted margin and margin floor.
  • If the GBU is different than Novecare we calculate a price threshold we compare with the quoted price and price floor.

For GBU = "Novecare":

  • If the quoted margin is below  "RMD approval" and above "GMD approval" and Price floor the approver role will be RMD
  • If the quoted margin is below "GMD approval" and above price floor the approver role will be GMD
  • If the quoted margin is below "Price floor" the approver will be PAM

For GBU different than "Novecare":

  • If the quoted price is below  "RMD approval" and above "GMD approval" and Price floor the approver role will be RMD
  • If the quoted price is below "GMD approval" and above price floor the approver role will be GMD
  • If the quoted price is below "Price floor" the approver will be PAM

Absolute thresholds:

We also implemented an absolute threshold logic to request an approval if the annual impact of the deviation will raise a certain amount.

Absolute thresholds are maintained at Custom metadata level (One Quote Approval) and at the moement only Novecare use it.

For Novecare values are the below:

  • RMD Absolute threshold = 20 000€
  • GMD Absolute threshold = 100 000€

To give a concrete example how it works the system calculates the price impact versus the estimated annual volume.

Egs:

If an OQLI has a estimated annual volume at 150 000 kg, a price guidance at 2€/kg and a quoted price at 1,5€/kg. The annual impact is (2€-1,5€)*150 000 = 75 000€. On this example we meet the RMD aboslute thresold and an approval will be require even if we are above the RMD approval threshold.


Differencies between Novecare and Technology solutions:



Approval matrix

II/ Approval process

  • Send for approval by AM
  • Approval / Rejection process

3/Notifications


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