Dynamic Pricing for Trucking

Michael Watson Ph.D Partner

If a broker gives too high of a price to a shipper, the business is lost. If it quotes a low price, the shipper will definitely dance, but the load cannot be profitably sourced from carriers.

Our solutions use predictive and prescriptive analytics to recommend an appropriate data-driven quote that will reach a balance. Based on historical deals, the likelihoods of shippers and carriers accepting a potential quote is established and then the most promising one recommended. We have developed several solutions ranging from periodically refreshed pricing models to real-time reporting processes.

Our approach in blending data science with traditional optimization techniques has helped numerous 3PL companies and logistics departments of other companies to trim losses while increasing profit on profitable loads. These solutions have additionally increased productivity of brokers and agents, minimizing their guesswork with effective analyses.

To learn more, click here for a paper published by Opex partner Diego Klabjan.