Case Study

Dynamic pricing improves margins in a post-pandemic era

“Unprecedented” is how we can define pricing in the pandemic times. The old rules don’t apply, and old methods don’t help in saving the disappearing margins.​​ With spot markets becoming the solution to manage shippers changing needs for capacity, an unruly price calculator is critical for logistics service providers.

Business Challenges

Motivated to drive revenue and customer satisfaction, sales teams often make rush order commitments without consulting with logistics. In a constrained market, without any notice, logistics might be forced to turn to the spot market rather than contracted carriers. However, done right, early guidance from sales about a special promotion would allow logistics to line up the extra capacity. Dynamic pricing is a must-have for logistics service providers to win. And keep customers.  

CBC Solutions

CBC implements a cognitive model to offer predictive pricing. We base pricing on internal knowledge and external factors that are controlling the marketplace. Our dynamic pricing model also deeply correlates to price in situations we call “black swan” events.

Benefits realized by Customer

Our Customer (a LSP) doubled their revenues by improving their win-rates at a time the industry was going through increased demand but eroding margins. We’ve helped our customer do more business and keep more in profits during tough economic in the Covid times.

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