Supercharging Dynamic Pricing for a Trucking Logistics Company

Explore how Aimpoint Digital’s Decision Sciences team performed a pricing model evaluation which led to adoption of new KPIs and a significant increase in gross profit.

Key takeaways
15%+
increase in gross profit for API quotes
2 new
model evaluation KPIs
TECH STACK
Company Logo Icon
Industry
Supply Chain & Logistics
Location
Indiana
SERVICES
Decision Sciences
Decision Sciences
Empowering decision-makers one model at a time
Product
No items found.
TECH STACK
Databricks
Azure

The Challenge

The client, a trucking logistics company, struggled to secure business buy-in to replace a legacy pricing model with one developed by its data science team. Traditional ML evaluation metrics don’t always reflect real-world performance, creating a bottleneck to deployment approval. The client turned to Aimpoint Digital to perform an extensive evaluation and certify the model’s code and architecture.

Our Approach

The Aimpoint Digital team worked closely with the client’s data science team to evaluate the model results, code, and architecture. We conducted architecture and code reviews through collaborative working sessions and independent analysis. Each step of the model pipeline and rules engine was reviewed and evaluated to verify the output was correct.

A detailed subset analysis was done on the model results to identify potential areas where the model performs poorly or might be overfitting. This analysis covered groupings of different locations, routes, distances, product types, and even customers. Visualizations were created to help identify patterns and communicate results to the business. We presented findings and recommendations to the founder, enabling an informed decision on live deployment.

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Results

RESULT #01
Identified and Resolved Bugs in the Rules Engine

Significant price inflation occurred as a result of the complexity of the rules engine. Multiple redundant rules were easily triggered, causing inflated prices and increasing the potential risk of lost revenue.

Supercharging Dynamic Pricing for a Trucking Logistics Company
RESULT #02
Created a Custom Pricing Regret Metric

Because pricing models are challenging to ground-truth without a live test, we created unconventional metrics that can indicate if a pricing model will improve profitability.

Supercharging Dynamic Pricing for a Trucking Logistics Company
RESULT #03
Improved Gross Margin in a Live Test

The model was deployed with a live pricing test, where a small percentage of the traffic was funneled to a random price model as a baseline.

Supercharging Dynamic Pricing for a Trucking Logistics Company

Key Takeaways

The client’s data science team had developed a foundation for a new pricing model but lacked the expertise to evaluate whether it should be deployed. By collaborating with the client’s team, we resolved bugs, refined rules, and developed custom evaluation metrics. This gave the business the confidence to deploy the model to production—unlocking greater profitability.

15%+
increase in gross profit for API quotes
2 new
model evaluation KPIs

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