39% Increase in Revenue through Demand Forecasting & Pricing Optimization for a Global Shipping & Logistics Leader

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