BENTONVILLE, ARK, SEP 6, 2023 -Logistics Studio today introduced an artificial intelligence tool that automates pricing for the transportation and logistics industry. Called the Dynamic Pricing Engine, the technology automates the pricing practices in an organization, driven by a blend of your historical buying and selling patterns, aggregated market data, and personalized pricing rules. Logistics Studio said its software could maximize revenue for freight brokers, transportation companies and final mile providers in a challenging market.
"The logistics industry faces numerous pressures such as volatile fuel prices, fluctuating demand, and increased competition," said Logistics Studio CEO Krishna Vattipalli. "These factors make it challenging for companies to accurately determine optimal pricing strategies, and that's where a dynamic pricing engine becomes useful."
Logistics Studio said its tool establishes a pricing range for logistics services based on variables such as demand, competition, lanes, equipment, and types of transportation. The price range becomes the basis for final contract negotiations
Artificial intelligence determines pricing, Logistics Studio explained, relying on external rate sources and historical pricing data. The company said its pricing engine is unique because it accounts for market variables. Those can include but are not limited to peak shipment days, delivery locations, holidays, accessorials, fuel surcharges. The flexibility and configuration capabilities of the Dynamic Pricing Engine allow it to work for any company in the industry.
"We are not the first to offer an automated pricing tool, but our unique offering will allow organizations of any size to configure it to their specific needs," said Mr. Vattipalli.
Logistics Studio said automated pricing gives logistics companies a competitive edge on competitors through:
Demand for freight services, warehousing and other logistics services has fluctuated dramatically in recent years, Logistics Studio pointed out. It said that finely tuned pricing is critical in maintaining market share and ensuring profitability.
"The Dynamic Pricing Engine allows companies to define a pricing rule set with configurations such as external rate sources, peak days, exceptions, accessorials and many more that align with their business objectives," explained Mr. Vattipalli. "It enables them to set competitive and profitable prices that maximize revenue without sacrificing customer satisfaction."
Logistics Studio said it developed the Dynamic Pricing Engine as part of its Logistics Studio business unit which works exclusively with transportation & logistics organizations to automate all aspects of the logistics industry. Logistics Studio supports some of the largest transportation, logistics and supply chain companies in the world with dedicated development teams and staff augmentation that drives their technology roadmap and ongoing innovation investments