With complementary approaches, both companies have decided to combine their expertise to offer fully optimized solutions to their clients. By combining Kardinal’s operational costs with Open Pricer’s recommended prices, delivery service providers can achieve optimal margins for each customer and territory. This partnership marks a shift from a model where cost and revenue optimization are decoupled to a more relevant approach of margin optimization where they are linked.

In today’s ever-changing and highly competitive last mile market, pricing decisions are complex and have a critical impact on business performance. However, due to a lack of time, data and tools, only a fraction of these decisions are thoroughly examined by analysts.

The Open Pricer price optimization platform, based on Machine Learning algorithms, calculates the optimal rates for parcels based on different parameters: shipping profile (origin, destination, weight, etc.), price history, customer segmentation attributes and network cost model. However, the costs associated with the last mile, which represent over 50% of total costs for parcel carriers, are generally based on averages. They fail to consider crucial elements such as postal code, route, day of the week, delivery type, insourcing or outsourcing, which often have a significant impact on margin. The partnership with Kardinal will enable Open Pricer to integrate last-mile costs more granularly into its platform. Kardinal’s innovative “dispatch intelligence” technology, already used by 70 DPD France depots, will enable customers of both companies to benefit from a more accurate cost model grounded in reality.