Farmacias Ahumada Improves Pricing via SaaS

Farmacias Ahumada S.A. (FASA), Latin America’s largest drug chain, is adding a pricing solution using a software-as-a-service business model.

Santiago, Chile-based FASA wanted to execute a consistent pricing strategy that could help the company improve its price image among shoppers. FASA also wanted to improve forecasting based on a quantified understanding of consumer demand. By tapping San Jose, Calif.-based DemandTec, FASA added DemandTec Price to help it set strategic prices, as well as support trading-partner collaboration.

Rather than purchase the software, however, FASA chose a SaaS contract. Called the wave of the future, SaaS software is obtained via a subscription. This eliminates the need for retailers to pay for periodic upgrades.

The SaaS model entitles retailers to all upgrades during the term of the subscription. When the subscription period expires however, the software is no longer valid.

“It was the SaaS business model, as well as an intuitive user interface and a solid platform that convinced us to choose this pricing solution,” said Jaime Trewik, commercial planning and strategic pricing manager for FASA.

FASA, which began using the solution in January, is initially using the solution to optimize prices for new items, promoted and regular merchandise.