What is predictive price in SAP LOD-SBO - Supply Base Optimization?

SAP Term: predictive price

• Component: LOD-SBO

• Component Name: Supply Base Optimization

• Description: A reference price that is derived by executing the predictive algorithms available in the SAP HANA Predictive Analysis Library PAL. It is calculated on the historic price data of a part.

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• Key Concepts: 
  Predictive Price is a feature of the SAP LOD-SBO Supply Base Optimization component. It uses predictive analytics to determine the optimal price for a product or service based on market conditions and customer demand. This helps businesses maximize their profits while still providing competitive prices. 
  
  How to use it: 
  To use Predictive Price, businesses must first input their current pricing data into the system. This data can include customer demand, market conditions, and other factors that may affect pricing. The system then uses predictive analytics to determine the optimal price for each product or service. This price can then be used to set prices for customers or to inform pricing decisions. 
  
  Tips & Tricks: 
  When using Predictive Price, it is important to keep in mind that the optimal price may not always be the lowest price. It is important to consider other factors such as customer demand and market conditions when setting prices. Additionally, businesses should regularly review their pricing data to ensure that they are taking advantage of any changes in the market or customer demand. 
  
  Related Information: 
  Predictive Price is just one of many features available in the SAP LOD-SBO Supply Base Optimization component. Other features include inventory optimization, supply chain optimization, and demand forecasting. Additionally, businesses can use SAP’s Business Intelligence tools to gain insights into their pricing data and make more informed decisions about pricing.