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volume pricing discounts

Home paragon erp: a Cloud-based erp use cases volume pricing discounts

“I need to keep track of the volume discounts that are offered by each of my vendors.”

Problem: A kitchen supplies store can purchase the same shelved product from multiple vendors. Depending on how much is ordered from each vendor, they can take advantage of different volume discounts. Since they only have one purchasing manager, the store is finding it difficult to keep track of all the discounts for each order volume on all their products. Because of this, they’ve lost out on volume discount savings on multiple occasions.

How Paragon helps

Creating an association

With the default system attribute ‘purchase cost’ and a customized attribute called ‘volume’, the store is able to create an association between product, vendor, purchase cost and order volume. For each product, they fill in the purchase cost, including discounts, that a vendor grants them based on different order levels.

Click on images below to expand

Triggering rules

Depending on the order volume that is set on the purchase order, a rule automatically tells the purchasing manager which vendor to issue the purchase order to, and at what cost. Now the purchasing manager doesn’t need to cross reference any external documents to make sure they’re ordering from the most affordable vendor for a specific volume.

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