Track: Revenue Management
Powering Ocean Freight Forwarding with Revenue Management
In the past few years, the ocean freight forwarding industry has faced significant challenges and uncertainties from the Suez Canal Obstruction, COVID-19 pandemic, fuel prices, trade disputes, and labor shortages. Ocean freight forwarding companies have been looking to add machine learning and optimization capabilities to navigate these uncertainties and adapt to changing market conditions. This presentation will share the lessons learned through developing a supply chain solution for a digital freight forwarding company. Topics covered include critical data cleaning and transformation to create quality input data, demand forecasting, container allocation, price elasticity estimation, and dynamic pricing. Outcomes include significant capacity planning and pricing improvements and, most importantly, substantial margin improvement across hundreds of trade routes. The solution generates intelligent buying and selling recommendations for the procurement and the sales organizations. It also improves operations by optimizing the allocation of containers to voyages across the network.