Demand Forecasting & Pricing Optimization Platform

About the client

One of the Top 3 Shipping & Logistics Company in the world with headquarters in US

Problems:

Lack of visibility into price sensitivity and effectiveness of discounts on shipments by products
Discounting decisions taken by agents in the market were highly subjective and not based on historical demand trends, price elasticity, or seasonality
Margin erosion faced due to unnecessarily high discounts in some cases while inadequate shipment volumes in others due to lack of right pricing
No data-driven price and discounting decision framework

Solution:

Innover increased sales revenue for 3 key products by creating a demand forecasting & pricing optimization platform powered by advanced Machine learning modeling. This entailed:

Price elasticity and Discount sensitivity of demand by products and service levels
Relationship between demand and revenue across products and service levels
Seasonal components and key macroeconomic triggers
Dynamic model embedded pricing application offering atomic level drill-down and “what-if” scenario simulation flexibility

Impact Delivered:

39.4%

Increase in sales revenue

23%

Increase in shipment volumes (i.e., demand)

34%

Reduction in arbitrary discounting