Decoding dynamic pricing and capacity planning for an industrial manufacturer
We worked alongside an industrial manufacturing client to address their recent decline
in market share. The client was aware that this was partly due to their extremely
manual and tedious process for determining optimal pricing strategies on a seasonal
basis.
The Opex Analytics team carefully sifted through their historical pricing and the
resultant market share and profits. We addressed the complex problem of pricing in two
parts. First, through extensive model testing, a core set of custom data features were
determined to have the best predictive power for each portion of the pricing process.
These predictions along with operational constraints and capacity limitations were then
used to set each commodity’s optimal price.
Once the model was created, Opex Analytics then built a multi-user platform application
providing automated custom pricing recommendations, allocation solutions and an
intelligent dashboard. Planners are now more confident in their pricing decisions and
leadership has a constant pulse on the state of the competition.
Since working with Opex Analytics, our client:
- Saw a 25% profit improvement, year over year
- Increased market share in several key competitive markets
Talk to us to learn more about how we demystified and automated dynamic pricing.