Written by: Riccardo Boin, Ryan Gavin, Philipp Rau, and Jaron Stoffels
Pricing strategies in logistics have been less mature than in other sectors. Fragmentation and a historically low degree of digitization have been challenges in developing more complex approaches. However, recent investments in data infrastructure have now opened a window for more comprehensive pricing transformation.
Logistics companies that transform their pricing could increase revenue by 2 to 4 percent, translating to as much as a 30 to 60 percent increase in operating profit. However, achieving this upside requires a strategy that tackles the entire pricing cycle. Here, we make the case for reforming pricing and outline a five-step process to achieve it.