The plethora of factors that impact logistical efficiency also impact end-product pricing. A change in one computational ingredient (e.g., increased fuel cost, security-related shipment delay) can have a profound impact on the overall shipping cost and, consequently, the product price. Price determination should be malleable and based on real-time cost data. When leveraging AI tools, it is possible to incorporate cost-sensitive components, often combined with external dimensional data (e.g., weather patterns and transport time), to accurately predict an optimized price.
Benefits for the company
Price optimization results in increase in revenue and sales for the company.
Type of expertise/ AI domain
Prediction Analytics, Price Elasticity, Support Vector Machine
Internal data required
Consumer Profiles, Economic Indicators, Historical activity data, Real time cost data, Real time demand based on search
External data possible
Geolocalized market data, Weather data, Demand Data, Fuel market data