AI-Powered Planning & Pricing Delivers a $1Million EBITDA Lift

Demand Planning & Price Optimization:
Forto

As an asset-less logistics and freight forwarding company that sells shipping containers to customers in Europe and Asia, our customer faced critical challenges that hindered their ability to be profitable.

After just 4 months of working with PrimeAI, they were able to identify $1 Million in combined cost-savings and new revenue, using our Demand Planning and Price Optimization engines.

$1M

$1M

Identified revenue & cost-saving opportunities

EBITDA improvement

An aerial view of a shipping container yard with multiple rows of containers, railway tracks, and cranes for loading and unloading containers.

The Challenge

Forto struggled with three primary challenges:

  • Difficulty tracking metrics and capturing critical insights, like how many shipping containers they had to sell, due to their scattered and disconnected data sources. They knew they were losing substantial profit, but they couldn’t pinpoint where or how much.

  • Determining the optimal number of shipping containers to purchase and knowing how many containers were available to sell. Without this information, they could pay penalties for returning excess inventory, or, if they purchased too few, they may have to pay premium prices to meet demand.

  • Difficulty pricing their services accurately to meet demand, remain competitive, and be profitable. The fluctuating pricing of shipping containers market and the company's inability to determine when to adjust prices to meet or create demand compounded their financial challenges.

View of a large cargo ship with many stacked containers sailing on the ocean under a cloudy sky.

PrimeAI’s Solution

  • We implemented PrimeAI’s Demand Planning AI engine which analyzes past data, trends, seasonality, and patterns to better predict how many shipping containers the company should buy.

    • By better predicting customer demand, the company can maintain optimal inventory levels, ensuring they meet customer needs efficiently without incurring additional costs.

  • We also implemented PrimeAI’s Pricing Optimization AI engine to evaluate market conditions, competitor prices, and customer behavior.

    • This analysis enables the company to achieve dynamic pricing and adjust prices in real-time to maximize margins across hundreds of trade routes.

  • PrimeAI also integrating different data sources into a centralized cloud data warehouse and provided intelligent buying and selling dashboards to their Procurement and Sales organizations.

    • This unified view provides a comprehensive view of shipping container availability and financial performance.

    • And, with accurate and centralized data, the company can make better decisions, identify revenue leakage, and optimize operations effectively.

The Results

After just 4-months, Forto saw substantial impact from their AI engines for Demand Planning and Pricing Optimization.

The new AI-powered profitability and operational stability enabled the company to raise capital, fueling further business growth.

Enhanced data integration and insights streamlined their operations and decision making, helping them improve their inventory processes.

Also, a consistent and competitive pricing strategy reduced customer churn and strengthened relationships with their manufacturing and retailer customers.

Two pairs of hands high-fiving in a warehouse with shelves of boxes in the background.

Customer Success Stories