Software creator Imaginnovate 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 historical buying and selling patterns, aggregated market data and personalized pricing rules.
Imaginnovate said its software would 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 Imaginnovate 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.”
Imaginnovate said its tool would establish pricing ranges 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, Imaginnovate 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:
- Peak shipment days
- Delivery locations.
- Fuel surcharges.
Imaginnovate said 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.
Imaginnovate said automated pricing gives logistics companies a competitive edge on competitors through:
- Fast response to shifting market conditions compared to manual rate setting;
- Freeing up staff currently assigned to rate setting tasks;
- Pricing teams to configure multiple pricing rules; and
- Standardizing price calculations across an organization.
Demand for freight services, warehousing, and other logistics services has fluctuated dramatically in recent years, Imaginnovate 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,” Vattipalli explained. “It enables them to set competitive and profitable prices that maximize revenue without sacrificing customer satisfaction.”
Imaginnovate said it developed the Dynamic Pricing Engine as part of its Logistics Studio business unit which works exclusively with transportation and 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.