Jadlog switches to Digital Pricing with Open Pricer
The collaboration comes in response to strong growth and increased market volatility. The Brazilian parcel delivery market is very competitive with multiple carriers (at global, national or regional level) and fulfilment platforms. Due to the immense size and topographic diversity of the country, the pricing model is complex with rates varying by state of origin, state of destination, delivery density zone and weight band.
The market is very dynamic: top 50 retailers work with between 5 to 10 carriers at the same time and source the best service by destination depending on price, transit time and quality of service. They use price comparison engines to allocate traffic to carriers often on a daily basis.
“Since the beginning of the pandemic, our market has become dramatically dynamic and we are convinced that technology can help us to identify risks and opportunities and quickly make the right pricing decisions.” says Bruno Tortorello, CEO of Jadlog Logistica.
The Open Pricer platform continuously gathers all useful information to update the pricing models and enables Jadlog’s sales teams and franchisees to easily find the right rate card for each deal depending on customer characteristics (revenue, industry, region, etc.), predicted costs and competitors’ prices resulting in improved conversion rates. The platform then monitors trade by retailer and destination to identify risks of attrition due to price and recommend incentives to retain customers’ volumes on destinations with declining traffic or opportunities to increase prices when/where traffic is growing fast and investments in additional capacity are required.
“We choose Open Pricer to centralise and standardise our pricing processes, make pricing decisions based on data, reduce time to quote and be proactive instead of reactive in a very dynamic market environment.” said Bruno Tortorello.