Challenge

A large global logistics company was experiencing bottom line pressure in the face of increased competition. Cost and price varied greatly across tradelanes and customers. The client was looking to maximize profitability at a container level to strengthen the bottom line.

Approach

A customer segmentation exercise helped understand characteristics of profitable customers and shipments (based on shipment type and value-added services, source and destination ports, seasonality, customer’s historical shipping patterns etc.). Insights from the segmentation guided a targeting model to help prioritize the best customers for a particular container in a particular route.

Outcome

While the prototype roll out of the targeting model was in excel sheets, a parallel effort was undertaken to revamp the internal sales productivity software application.
The software was modified to allow the sales management to select customers based on the underlying model and simulate profitability scenarios at various price points.

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    Acies is a design and development firm helping organizations transform their business and increase market value. Acies helps businesses cope and innovate in the digitalization era using a unified framework of technology, data, insights, design and strategy.