How PROS Helps ExxonMobil Modernize their Pricing and Quoting

ExxonMobil, one of the largest energy companies in the world, is tackling huge global challenges. Safely and responsibly meeting the global demand for energy is one of these challenges. Bringing affordable and sustainable energy solutions to the world is another. These are complex puzzles that require relentless innovation and technology to bring ExxonMobil’s visions to reality.

In addition to these, pricing and selling in a hugely diverse product portfolio is an opportunity that needs to be managed effectively.

ExxonMobil is a vast corporation with three primary businesses—upstream (oil and natural gas), product solutions (refining and chemicals), and low carbon solutions. Additionally, these business lines are further divided into sub-businesses, each with its own organizational model that is underpinned by deep technical and commercial capabilities along each value chain.

In the Lubricants division, to optimize and execute the pricing strategy and processes from one of its several value chains and capture the value of its offerings, ExxonMobil relies on the PROS Platform, including PROS Smart Price Optimization & Management and PROS Smart Configure Price Quote (CPQ).

PROS Collaboration with ExxonMobil

Our collaboration with ExxonMobil began in 2018 in the company’s International Marine Lubricants division, which supplies a wide range of high-quality products to the maritime industry.

ExxonMobil needed to replace their existing CRM system and customized solution for pricing, quoting, and analytics. The previous CRM was too simplistic for the complexity of their business, and they turned to PROS to help them reimagine how they could better manage their pricing across the globe, including unique customer sales agreements.

The pricing process is complex in the energy world. Yet the current solution at ExxonMobil required a lot of manual work, and it was impossible to keep up with the daily ups and downs of a highly volatile market.

ExxonMobil wanted a software provider that could:

• Accommodate their complex, global business, which negotiates in multiple contexts and channels.
• Help them manage customer-specific pricing effectively.
• Empower pricing teams to make smarter pricing decisions across a multitude of pricing combinations and calculation logic.
• Enable collaboration between sales and pricing teams across the global organization.

It became clear that PROS should handle the entire scope

After delivering the pricing solutions for the first part of ExxonMobil’s Lubricants business (International Marine), ExxonMobil decided to use PROS to handle the complexity and scope of the requirements for the entire Lubricants business Globally (Finished Lubricants and Basestocks) in 2020 and 2021. The solutions were expanded to include PROS entire B2B Platform, including:

• Price management tools to help pricing teams capture the nuances of different rules and leverage automatic workflows to update prices faster and more efficiently.
• Price optimization to guide sales teams to the recommended price point.
• Configure Price Quote (CPQ) capabilities, enabling sales teams to create and manage quotes for all selling scenarios, including the ability to make mass price changes for complex sales agreements.

Later on, PROS pricing and quoting capabilities were extended to ExxonMobil’s Asphalts business.

Why was PROS selected?

PROS was selected by ExxonMobil as a solution provider that could provide the breadth of capability that was required. The PROS Platform offers a secure, high-performance architecture with a product vision that can support ExxonMobil’s revenue management and digital transformation capabilities.

Realizing significant results

Within the first months of launching the PROS Platform, ExxonMobil carried out multiple worldwide mass price changes- each change accounting for thousands of prices and impacting many business units across the globe. Before PROS, price changes of this scale and complexity would have taken a long time to accomplish and could come with variability, overtime work, and complex processes spread across systems. With PROS, ExxonMobil was able to be more agile in their pricing strategies.

But executing mass price changes more easily aren’t the only benefit ExxonMobil is experiencing. With PROS pricing and quoting solutions, ExxonMobil is also realizing other benefits, including:

• Faster pricing negotiations – With PROS pricing automation and process improvements, the company is better positioned to close deals faster.
• Delivering the recommended price – PROS powered pricing guidance during the quoting process guides sales teams to the recommended price point.
• Removing risk – The implementation of PROS has helped ExxonMobil move away from its legacy systems, which were impacting the sales process. Now they have a reliable pricing and quoting solution that enables the team to quote with speed and accuracy.

ExxonMobil has improved results at scale

Currently, 1,300 users across multiple ExxonMobil units in the Lubricants business use PROS Smart Configure Price Quote, generating over 800 quotes monthly with hundreds of pricing agreements, many of which are highly complex. One member of the sales team said, “I like the PROS Smart CPQ system a lot. It’s clear, easy to work with and when I compare the number of issues we faced with the previous system, we are in much better shape with PROS.”

The pricing team leverages PROS Smart Price Optimization & Management for over 12 million transactions annually.

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